The employees association estimates that the quantity of employees affected via layoffs ( PHK ) this yr will attain 8,000 to 10,000 workers.
Secretary-General of the All-Indonesia Workers' Organization (OPSI) Timboel Siregar stated the digitalization era had an effect at the shift of labor-intensive industries to capital-intensive industries. This shift is judicious to have brought on an boom in layoffs.
"The excessive layoffs this yr are attributable to digitalization, it's viewed that many retail sectors near their retailers . Then within the automotive sector, there can also be a transition to technology and automation so that many are laid off. In addition, simply through the fact trade pageant may be very tight among countries, making the trade dense our work, the production isn't optimal, the consequence is a layoff, "he stated as quoted at the Business .com web page , Wednesday , August 7, 2019.
Timboel estimates that this yr the quantity of layoffs may want to be larger than final year. That occurred as the industrial conditions, highly labor intensive, had been difficult.
"If the govt. says the layoffs are down, however the information are up. The government information final year, [layoff victims] round 3,500 workers. This yr extra might attain 8,000 to 10,000 workers," he said.
Chairperson of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal also envisioned the energy quantity of layoffs this yr might attain 10,000 workers.
That quantity represents energy layoffs from the metal trade of round 3,000 to 5,000 workers, 1,000 to 2,000 employees cement, automotive primarily from Nissan 500 to 1,000 workers, and electronics from Batam round 2,000 workers.
In addition, many retail retailers had been closed, which also contributed to layoff figures. The banking sector also decreased the group simply through the fact of the recent technological sophistication.
"The industrial conditions this yr are hard, they have a difficult problem to hold enterprise continuity. The metal industry, for example, has been hit via the inflow of low cost metal from China. Then there may be extra from the cement and electronics industry. Lots of retail closures this year. So the quantity of layoffs this year. "It may be very big to attain 10,000 workers," he said.
For this reason, Said asked that the govt. as we speak take concrete steps to avoid layoffs , adding the realization of the pre-employment card. "There ought to be a concrete government attempt to shield employees in Indonesia," he said.