Indonesia steps up anti-layoff measures amid Middle East tensions

Indonesia is moving swiftly to shield workers from potential layoffs as geopolitical tensions in the Middle East continue to pressure global economies.

Deputy Minister of Manpower Afriansyah Noor reaffirmed the government’s commitment to maintaining employment stability and preventing a spike in unemployment across the country, as reported by Antara.

“We will immediately take precautionary measures against layoffs that could lead to widespread unemployment in Indonesia,” he said in Jakarta on Sunday.

According to Noor, the Indonesian government is closely monitoring how ongoing global conflicts could affect domestic industries and employment conditions.

Officials are preparing anticipatory measures to minimise disruption to businesses and workers as uncertainty grows in international markets.

Rising concerns

The warning comes as several economies worldwide face mounting strain from geopolitical instability, supply chain disruptions and weakening business confidence linked to tensions in the Middle East.

Noor noted that Indonesia’s unemployment rate currently stands at around 4.3%, representing approximately 7.4 million people. 

The government is now intensifying labour protection and workforce development programmes to prevent the figure from rising further.

He stressed that preserving jobs remains a priority as Indonesia navigates increasingly volatile global economic conditions.

Internship expansion

As part of its response, the government plans to significantly expand the National Internship Programme. 

Participant quotas will increase from 100,000 to 150,000 people in 2026 in a move aimed at helping young job seekers gain practical workplace experience.

Noor explained that the initiative is designed to support fresh graduates in building skills that align with rapidly evolving industry requirements and a more competitive employment landscape.

Skills push

The government is also strengthening vocational training opportunities for senior high school and vocational high school graduates through job training centres across the country.

“That opens up a quota of 70,000 training slots, so please register and participate,” he said, adding that participants receive daily allowances and certifications during the free training programme.

Officials believe the training initiatives will improve the quality of Indonesia’s workforce while creating stronger pathways into employment.

Economic resilience

Noor further stated that the government sees a strong people-based economy as essential to weathering global uncertainty and external economic shocks.

He added that job training and placement programmes would continue to expand nationwide as Indonesia works to reinforce economic resilience and protect workers from the fallout of global tensions.