Jakarta (ANTARA) - Indonesian House of Representatives (DPR RI) speaker Puan Maharani urged the government to prioritize safeguarding thousands of employees of PT Sri Rejeki Isman Tbk (Sritex) from layoffs after the textile giant was declared bankrupt.

"We must focus on protecting workers in facing this uncertain situation. There must be no layoffs," she noted in a statement from her office on Friday.

Maharani expressed hope that the trade dispute in Sritex can be resolved and that the company can avoid layoffs of employees.

"A storm of layoffs must be avoided. This is related to the welfare of Sritex's employees," she emphasized.

She also reminded the government to pay attention to protecting workers' rights from the worst possible outcomes.

"Government policies should be pro-employee to avoid wider economic impacts and reduce the risk of mass unemployment," she emphasized.

However, Maharani stressed that if mass layoffs cannot be avoided, the government must ensure a guarantee for workers affected by layoffs without any obstacles.

Related news: Indonesia's Prabowo urges no layoffs at Sritex amid bankruptcy

The Job Loss Guarantee (JKP) includes salary, severance pay, access to job market information, and job training according to the BPJS Employment program.

The program is expected to ease the financial burden of laid-off employees by providing temporary benefits and training to find new jobs.

"If possible, the government can also facilitate the distribution of workers affected by layoffs to new workplaces. The DPR will supervise it," she noted.

On the other hand, she reminded the government to provide effective assistance following the issue of the government's bailout to save Sritex from bankruptcy.

"We support the government's assistance to Sritex to continue its trade activities," Maharani remarked.

She stated that the potential for mass layoffs could have an impact on national economic growth since Sritex is the largest textile company in Southeast Asia.

"Sritex's bankruptcy is not merely a financial problem but brings a widespread impact on the workforce, the local economy, and social stability," she concluded.

Related news: Govt sets rescue plan for textile giant Sritex after bankruptcy ruling

Translator: Melalusa Susthira K, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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