Labor-Intensive Workers Make Majority of Layoffs, Says Union Confederation

November 8, 2025 | 02:50 pm

TEMPO.CO, Jakarta - The National Workers Union Confederation (KSPN) reports that as many as 126,160 workers from its union members have suffered from layoffs from 2023 to October 2025. "Out of this number, 99,666 workers come from the labor-intensive sector," said President of KSPN, Ristadi, in a written statement on Saturday, November 8, 2025.

The reported number is based on reports from KSPN members to the central board (DPP) of KSPN this year, accumulated from reports since January this year, including some workers who were laid off in 2023.

Ristadi said the 126,000 workers who had their contracts terminated worked in 59 textile and textile products companies, while the rest worked in non-textile sectors. He mentioned that three out of the 59 companies are focused on the export market, with some others entirely focused on the domestic market. 

According to Ristadi, 99,000 or 79 percent of the total KSPN workers affected by layoffs are from labor-intensive sectors such as textiles, garments, and footwear. The rest work in the retail, plantation/forestry, automotive, and mining sectors.

In terms of regional distribution, Ristadi revealed that Central Java recorded the highest number of laid-off workers from KSPN members, with 47,940 people, or 38 percent of the total workers.

This is followed by 39,109 workers in West Java (31 percent), 21,447 workers in Banten (17 percent), and 7,569 workers in Southeast Sulawesi (6 percent). Meanwhile, 10,095 workers or 8 percent are in Jakarta, West Nusa Tenggara, and other regions.

Ristadi explained that the layoffs are a result of the pressure on local companies due to the flood of imported products. "This issue has indeed become a negative sentiment towards the economic conditions or towards the existence of our organization," he said.

Based on confirmation from each company, Ristadi revealed that a reduction in orders became the primary cause of the layoffs. Another reason is the lack of orders altogether, leading the management to halt total production.

Furthermore, Ristadi stated that layoffs occur due to a drop in the quality and quantity of products as a result of outdated production machinery. As a result, the product prices cannot compete with production costs.

Another reason for layoffs is the condition of defaulting on debts and being declared bankrupt by the court. Losing out to imported products in the domestic market is also one of the reasons why companies are carrying out layoffs.

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