APINDO DIY States Employment Conditions in DIY Remain Stable, Warns of Potential Layoff Threats in the Second Semester of 2025
Thursday, 01 May 2025
YOGYAKARTA – Timotius Apriyanto, Deputy Chairperson of the Indonesian Employers Association (APINDO) DIY for the Employment sector, stated that the current employment conditions in DIY (Special Region of Yogyakarta) are relatively stable. Industrial relations remain well-maintained.
This is due to the existing connections and mutual understanding between workers, companies, and the government.
He mentioned that they have not received any reports of layoffs, particularly from labor-intensive processing industries.
However, he warned that the threat of mass layoffs could increase in the second semester of 2025.
In 2024, 1,779 workers from 76 companies were laid off.
In 2025, the threat of layoffs is predicted to be even higher.
"Yes, this is a major challenge. The increased risks are due to the Trump tariff policy, which has changed the trade landscape, and Indonesia is still hit by 46-47 percent. If this happens, DIY's exports to the US in 2024 accounted for 43 percent. The Trump tariff policy is suspended for 90 days, which will be around early July 2025," he said on Thursday (May 1, 2025).
"The highest export commodities to the US are textiles, both knitted and non-knitted products, followed by furniture and crafts, and third, leather products, including gloves. These are labor-intensive industries. If 43 percent of the exports to the US are affected by half, the impact will be significant. It will disrupt liquidity and cash flow in companies. Without cash flow, efficiency measures will be taken, leading to layoffs," he continued.
He reiterated the importance of improving productivity and business competitiveness.
When productivity and competitiveness increase, worker protection and welfare will automatically improve.
The government must seriously relax licensing policies and bureaucratic reforms.
This would prevent a high-cost economy.
Timotius also added that labor unions need to transform into cooperatives.
Not just for savings and loans or basic goods, but cooperatives that become part of the supply chain for companies.
"So, suppliers should not be sourced from outside but from labor unions. This would empower workers even more. The key lies in industrial dialogue and social dialogue," he emphasized.
Source: jogja.tribunnews.com
