Workers in Indonesia sent home without pay amid recession

With Indonesia falling into its first recession in 22 years, an increasing number of workers are being laid off without pay.
By: | November 16, 2020

“Due to COVID-19, many businesses have reduced work hours, by an average of 32.6%. As many as 17.6% of workers have been dismissed without pay. 12.8% of workers have been laid off temporarily,” said Rosan Roeslani, General Chairman of Indonesia’s Chamber of Commerce and Industry. 

He added: “6.45% of individuals who have been laid off have only been paid partially. Meanwhile, 3.69% of workers have been fired with full pay,” reported Indonesia Expat.  

READ: Indonesia’s unemployment hits 10-year high, economy enters recession

Several strategies have been put in place to prevent companies from firing so many workers or ensure they are let off fairly, said the Chamber of Commerce and Industry. “As liquidity is still small, if you are laid off, you have to pay severance pay. We are building an effective market network chain to ensure businesses do this,” Rosan said. 

In addition, the chamber is working on increasing creativity and innovation amidst the COVID-19 pandemic. Human resources are being encouraged to be more creative and adaptable in the current situation.