APINDO Urges Deregulation to Stop Mass Layoffs

The Indonesian Employers Association (APINDO) has called for government deregulation and policy reforms to prevent further mass layoffs, particularly within the textile and garment sectors. According to the Jakarta Globe, the business group is urging the administration to address regulatory hurdles that are hindering industrial competitiveness and contributing to job losses across the country.

APINDO Demands Policy Shifts to Protect Jobs

Shinta W Kamdani, chairperson of APINDO, stated that the current regulatory environment is creating obstacles for businesses attempting to maintain their workforce. The association argues that deregulation is necessary to stem the tide of job cuts by making it easier for companies to operate and compete in both domestic and international markets, according to reporting by the Jakarta Globe.

The call for reform comes as the textile industry faces significant pressure. APINDO suggests that the government must move beyond temporary fixes and implement systemic changes to the business climate to ensure long-term employment stability.

Textile Industry Crisis and the Layoff Task Force

The textile and garment sectors have become focal points for these concerns due to a surge in mass layoffs. To address the crisis, a Layoff Task Force has been established to coordinate responses and mitigate the impact on workers, as reported by the Jakarta Globe.

Industry leaders point to several factors driving the instability, including the influx of cheap imported goods and high operational costs. APINDO contends that without targeted deregulation and stronger protections against unfair competition, the textile sector will continue to shrink, leading to more displaced workers.

Regulatory Hurdles and Economic Impact

The association emphasizes that the lack of streamlined regulations increases the cost of doing business in Indonesia. According to APINDO, these inefficiencies make local manufacturers less competitive compared to regional rivals, which directly translates into a reduced capacity to sustain payrolls.

The business group is pushing for a more agile regulatory framework that allows industries to adapt to global market shifts. The goal is to create an environment where companies can pivot their operations without being stalled by bureaucratic red tape, which Kamdani suggests is critical for preserving existing jobs.

The ongoing dialogue between APINDO and the government centers on identifying the specific regulations that act as bottlenecks for the textile industry. The association maintains that the urgency of the mass layoffs necessitates immediate executive action to prevent a wider economic downturn in the manufacturing sector.