"(The ministry) also encourages companies to talk about (their condition) in a bipartite dialogue internally. Many companies convey their certain conditions through consultation with the Directorate General of Industrial Relations and Workers' Social Security," Fauziyah said following the “2022 National Conference on Area-Based Job Opportunity Expansion” here on Friday.
Through a bipartite dialogue, the government is aiming to find the best solution for all parties.
Fauziyah said that she has asked the director general of industrial relations and workers' social security, Indah Anggoro Putri, and her team to conduct mitigation and mediation steps to prevent layoffs.
The minister made the statement in response to questions from the media regarding the relocation of several companies to Central Java, which could lead to layoffs at the companies’ previous locations.
The move could have an impact on labor absorption at the new companies’ sites, she said. However, she assured that the ministry will take several steps to prevent layoffs.
"We will continue to mitigate," she stated.
Earlier, it was rumored that several companies will be relocating their factories from Banten to Central Java in 2023.
According to the Banten Provincial Manpower and Transmigration Office, the relocations could affect thousands of employees working in the companies and have a domino effect on the communities living around the old locations.
Meanwhile, at the conference, Fauziyah said that the condition of Indonesia's job market has begun to recover after being impacted by the COVID-19 pandemic.
She highlighted an increase in the labor force of 4.2 million, a decline in the unemployment rate of 0.68 million, and an increase in the labor force participation rate (TPAK) of 0.83 percent compared to last year.
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Translator: Prisca V, Kenzu
Editor: Suharto
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