Business Group Calls for Deregulation to Stem Job Cuts
The Indonesian Employers Association (Apindo) is urging the government to implement deregulation and simplify business processes to combat rising layoffs. Data shows a decline in manufacturing activity and a significant increase in job losses during the first half of 2026.
Why it matters
It highlights economic instability in Indonesia and the tension between regulatory burdens and labor market health.
July 29, 2026 | 3:26 am SHARE URL berhasil di salin. This photo shows the apparel production activities in Jakarta on Nov. 7, 2024. (Antara Photo/Idlan Dziqri Mahmudi) Jakarta. The Indonesian Employers Association (Apindo) on Tuesday urged the government to accelerate deregulation and remove barriers to doing business, arguing that addressing the underlying pressures facing companies is the most effective way to prevent a wider wave of layoffs.
Apindo Chairwoman Shinta Widjaja Kamdani said the government should focus on resolving the root causes of business distress rather than responding only after workers have lost their jobs.
"Layoffs are the downstream problem. What we need to understand is what causes layoffs and what challenges businesses are facing," Shinta told reporters in Jakarta.
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