1.2 million laid off or furloughed in Indonesia due to COVID-19

The COVID-19 outbreak has hit Indonesia hard, not only in its healthcare, but its workforce, with over 1.2 million jobs affected, according to its Manpower Ministry.

Indonesia has the highest number of cases in Southeast Asia after Singapore, with over 9,000 infected and 700 deaths.

And the pandemic has brought the largest Southeast Asian economy to a standstill, with businesses having to shut down and lay off their employees.

According to data from the Manpower Ministry, over 1.2 million workers from 74,439 companies in various sectors have either been told to stay home or have been laid off as a result of the pandemic.

And just in Jakarta alone, at least 162,416 workers in the capital city had reportedly been laid off or furloughed, based on Jakarta Manpower Agency data.

The Confederation of Indonesian Workers’ Unions (KSPI) suggested an alternating shift system or partial dismissal in a bid to keep production running without laying off workers. In the case of a partial lockdown, it also urged employers to send their employees home without cutting their salaries.

Manpower Minister Ida Fauziyah also urged all industry players to make layoffs their last choice during the pandemic. Instead, companies could lower salaries or reduce working days and hours, among other alternatives.

“The situations and conditions are indeed challenging, but this is the moment for the government, business people and workers to work together and find a solution to mitigate the impact of COVID-19,” he said.