Yogyakarta Faces Layoff Emergency, Apindo: Wage Subsidy Must Be Larger and Extended
Sunday, 05 October 2025
Yogyakarta – The sluggish economy, coupled with rising unemployment and a surge in layoffs (PHK), has made government intervention crucial to stimulate economic growth.
The Indonesian Employers’ Association (Apindo) Yogyakarta Special Region (DIY) emphasized the need to expand the wage subsidy program for affected workers.
Timotius Apriyanto, Vice Chair for Manpower at Apindo DIY, explained that Indonesia is currently facing economic uncertainty and global geopolitical turmoil, both of which are increasing the risk of mass layoffs.
“In DIY alone, there have been more than 2,500 layoffs, with the highest number recorded in Sleman Regency, reaching around 1,900 workers. One of the main causes was a factory fire that forced the termination of 1,300 employees. Overall, the number of layoffs this year has increased compared to last year,” he said, as quoted from Harianjogja.com, Sunday (Oct 5, 2025).
Meanwhile, the determination of the 2025 Provincial Minimum Wage (UMP), scheduled for November, presents its own challenge amid declining public purchasing power.
According to Timotius, current market conditions, particularly in the souvenir, textile, and basic needs sectors, show clear signs of economic slowdown.
“This decline in purchasing power could serve as an early warning of a broader economic downturn,” he added.
To prevent more severe impacts, Apindo DIY urges the government to expand the wage subsidy program (BSU) that was implemented last year. However, both the value and coverage of the program need to be increased.
“We hope that the wage subsidy assistance will be extended with a larger amount at least Rp600,000 per month for workers earning below Rp5 million. Ideally, the program should continue until the end of 2025 so its impact can be fully felt,” Timotius explained.
He also suggested that the government could explore alternative funding sources without disrupting national fiscal stability.
“I am confident that the Minister of Finance can find an appropriate financing solution. Part of the budget could be reallocated from other programs, such as the Free Nutritious Meals (MBG) initiative,” he said.
Furthermore, Timotius stressed that government policies should not only be reactive but also focused on boosting productivity and industrial competitiveness.
“What needs to be strengthened is the industrial and trade ecosystem. From the labor perspective, productivity must be enhanced through revitalized education and vocational training. Ultimately, upskilling and reskilling are key for DIY to face future economic uncertainties,” he concluded.
Source: jogja.suara.com
