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Kadin Urges Businesses to Prevent Layoffs After Minimum Wage Increase

By Admin 1 Senin, 02 Desember 2024 Pengunjung (113) 1 Mins Read
kadin-urges-businesses-to-prevent-layoffs-after-minimum-wage-increase

Inp.polri.go.id - Jakarta.  The Indonesian Chamber of Commerce and Industry (Kadin) has urged employers to avoid layoffs following the government’s decision to raise the provincial minimum wage by 6.5% for 2025.

Kadin Chairman Anindya Bakrie encouraged companies to explore all possible measures to prevent job cuts, emphasizing that layoffs should be a last resort. 

“Layoffs increase unemployment and worsen economic conditions. We hope businesses will prioritize other solutions,” he said during a press conference after Kadin's 2024 National Leadership Meeting in Jakarta on Sunday (1/12/2024).

Anindya welcomed the government’s plan to form a Layoff Task Force (Satgas PHK), expected to help businesses navigate challenges posed by the wage increase. 

“The task force will likely collaborate with employers to explore alternatives to layoffs,” he noted, as quoted by antaranews.com.

Recognizing the varying financial pressures on companies, Anindya acknowledged that some may struggle to balance operational costs and employee welfare. However, he expressed optimism that businesses could find innovative strategies to adapt without reducing their workforce.

“Kadin is committed to supporting businesses in ensuring long-term sustainability while safeguarding jobs,” he said.

(mg/inp/pr/nm)

 

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