Worker Union Demands Govt Support as Layoffs Exceed 62,000
Jakarta. A workers union has urged the Indonesian government to implement policies that would provide an immediate boost to domestic demand and prevent more job cuts in the manufacturing sector.
The Confederation of Indonesian Workers’ Union, or KSPSI, reported on Thursday that 62,321 workers have lost their jobs since the beginning of this year as weak domestic and international demand forces companies to reduce their workloads.
The Manpower Ministry has recorded 42,449 layoffs so far this year, but admits there were delays in companies reporting their figures.
Redundancies mainly occurred in the food and beverage, textile, shoes, electronics and mining sectors, KSPI chairman Yoris Raweyai said on Thursday.
Ministry data indicated that Jakarta, Banten, West Java, Central Java, East Java, East Kalimantan, North Sumatra and Riau Islands lost the most number of jobs.
"The government needs to come up with breakthrough policies. Workers should not be victims any longer. We need regulations to back us up," Yoris said.
Indonesia's economy expanded 4.7 percent in the second quarter of 2015, the slowest pace in six years due to weak commodity prices and sluggish public spending that hit company revenues.
Rekson Silaban of labor-related policy watch Labor Institute Indonesia said the government could increase subsidies, providing an immediate boost to consumption, which accounts for 56 percent of the country's gross domestic product.
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