Workers Association Predicts 10,000 Layoff in 2019

TEMPO.CO, Jakarta - The Indonesian Workers Organization (OPSI) predicts around 8,000 to 10,000 workers will face layoffs (PHK) in 2019.

OPSI secretary-general Timboel Siregar says that the change to the digital era has shifted the country’s industry from labor-intensive industry to capital-intensive industry. He argues this has caused an increase in workers lay-off.

“The high rate of lay-offs is caused by digitalization which can be seen from a large number of retail sectors closing outlets. Then there’s the automotive sector with the change to automation that caused many to be laid-off,” said Timboel.

In addition, he added, the tightening industry competition among countries drove Indonesia’s labor-intensive industry to lack in production capacity, which leads to multiple lay-offs.

He further predicts that this trend will continue to grow this year and will eventually surpass last year’s statistics of workers being terminated from their jobs, especially in the midst of the difficult situation in the labor-intensive industry.

“The fact is lay-offs are on the rise despite the government saying otherwise. The government’s data last year stated that 3,500 workers were laid off last year. This year will reach 8,000 to 10,000 employees,” he asserts.

The same sentiment was shared by Chairman of the Confederation of Indonesian Workers Unions (KSPI) Said Iqbal who agreed that the potential layoffs this year could reach 10,000 employees.

They predict this will affect the steel industry (3,000-5,000 workers), cement (1,000-2,000 workers), automotive (500-1,000 workers), and the electronics industry in Batam (2,000 workers).

BISNIS.COM