JAKARTA — Indonesia is grappling with a significant economic crisis as over 60,000 workers have lost their jobs in just two months, specifically between January and February 2025. This alarming statistic comes from a report by the Labour Party and the Indonesian Workers’ Confederation (KSPI).

Said Iqbal, President of KSPI, revealed that the fallout has significantly impacted 50 companies across various sectors. Shockingly, around 30% of these companies, including the well-known textile giant Sritex, have declared bankruptcy. This trend signals a concerning trend in Indonesia’s economic landscape, prompting fears of a wider ripple effect that could destabilize various industries and affect thousands more workers.

As the economic landscape deteriorates, analysts are calling for immediate government intervention to support struggling businesses and protect jobs. Economists warn that if this trend continues, we could witness a further escalation in unemployment rates, which may lead to increased economic instability. The situation highlights the urgent need for structural reforms within the Indonesian economy to improve resilience against external shocks and ensure sustainable job creation.

In light of these events, many are left wondering how the government will respond to this escalating crisis and what measures will be put in place to safeguard the workforce and stimulate economic recovery. The coming months will be crucial as businesses seek to navigate through these troubled waters. Will the government take strong measures to turn the tide, or are we headed for deeper troubles? Stay tuned for updates on this unfolding situation!