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More Than 40,000 Workers Laid Off in Indonesia This Year

Nurul Darari by Nurul Darari
September 24, 2026
in Business, Indonesia
Reading Time: 2 mins read
More Than 40,000 Workers Laid Off in Indonesia This Year

More Than 40,000 Workers Laid Off in Indonesia This Year

Jakarta, ThedailyID — More than 40,000 workers in Indonesia have lost their jobs in 2026, according to the Ministry of Manpower.

The ministry said layoffs have fluctuated since the COVID-19 pandemic. The trend continued into the third quarter of 2026.

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C Heru Widianto, a senior industrial relations mediator at the ministry, presented the figures on Thursday, September 24.

He said 127,000 workers lost their jobs in 2021. The figure then fell to 25,114 in 2022.

Layoffs rose again to 64,855 in 2023. The number reached 77,965 in 2024 and around 88,000 in 2025.

“This year, we are approaching the 40,000 mark,” Heru said during a discussion in Central Jakarta, as reported on Thursday, September 24.

However, data from the Ministry of Manpower’s Satu Data platform shows a higher figure for the first seven months of 2026.

The platform recorded 43,805 workers who lost their jobs between January and July 2026. These workers were registered under the Job Loss Insurance (JKP) program.

West Java recorded the largest share of affected workers. The province accounted for 20.16% of the national total.

Heru also highlighted the potential increase in JKP claims. He expressed hope that the social security fund would remain able to cover payments to workers affected by layoffs.

“I do not know whether the social security fund will be able to handle it. Hopefully, it can continue paying JKP benefits,” Heru said.

The government funds JKP contributions through the state budget (APBN), he added.

Heru also said workers who lose their jobs often withdraw both JKP benefits and Old Age Security (JHT) funds.

He raised concerns about workers spending those funds without sufficient financial planning. Therefore, he called for stronger financial literacy among workers.

“This is something ministries need to address. We need to improve financial literacy among Indonesian workers,” Heru said.

Meanwhile, the Indonesian Employers Association (APINDO) presented a different set of figures.

APINDO analyzed data from BPJS Ketenagakerjaan and the Ministry of Manpower. Its data showed 98,080 workers listed as inactive due to layoffs between January and August 2026.

Of that total, workers had submitted 54,116 JKP claims following layoffs.

The different figures reflect different data periods and sources. The Ministry of Manpower figure covers workers registered under JKP, while APINDO presented a broader count of workers listed as inactive due to layoffs.

Tags: EmploymentIndonesian WorkersJKPLayoffs IndonesiaMinistry of ManpowerPHK 2026ThedailyIDWest Java
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