Call 500,000 employees threatened with dismissal, employers ask for incentives from the government

GIACARTA, KOMPAS.com – President of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid said: 500,000 employees at risk of dismissal or they must be fired. This was due to the pressure on the company’s finances from global economic pressures.

He therefore hopes that the government can continue to provide support to the business world and the industrial sector through incentives.

“One of these is through the provision of tax and non-tax incentives to the industries that are the driving force of the Indonesian economy,” he said in a written statement Thursday (3/11/2022).

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Arsjad said government support in the form of fiscal and non-fiscal incentives for labor-intensive industries is a crucial step amid the threat of a wave of layoffs, as it is still ongoing due to the pressure of the pandemic. .

A wave of layoffs has occurred in various regions due to global economic pressures. In West Java, for example, at least 18 garment factories were forced to close so that their workers would lose their jobs.

Kadin said the textile industry and products are currently experiencing a decline in their performance due to declining export demand due to the economic slowdown, rising inflation and local market pressures.

With very high pressure in this industry, Kadin said up to 500,000 employees were threatened with being fired or forced to be fired.

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Kadin said another labor-intensive industry that showed a significant decline in performance was the tobacco product industry.

The profitability of cigarette companies continues to decline due to excessively high excise duties in an uncertain economic situation. A number of large cigarette companies that usually make money are now forced to experience a significant drop in net profit.

Arsjad also specifically highlighted the continuity of this labor-intensive industry which absorbs many workers. He hopes that labor-intensive industries are provided with the right policies.

Read also: Preventing layoffs, Ministry of Labor ready to help employers and workers find the best solution

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