Prabowo to form termination of employment task force

Satgas PHK will anticipate layoffs and protect the rights of affected workers.

President Prabowo Subianto delivers a briefing during the Joint Economic Discussion with the President of the Republic of Indonesia at Menara Mandiri, Senayan, Jakarta, on April 8, 2025. Photo by Aditya Pradana Putra/Antara

By Anna Fadiah and Hayu Andini

In a bold move to address growing concerns over employment stability, President Prabowo Subianto is set to form a termination of employment task force, known as Satgas PHK. This initiative comes at a time when Indonesia is navigating through economic uncertainties that have impacted industries and workers alike. The focus of the task force will be to anticipate potential layoffs, protect workers' rights, and ensure a fair process for those affected.

President Prabowo Subianto to form termination of employment task force was announced during his speech at the "Economic Gathering with the President of the Republic of Indonesia: Strengthening National Economic Resilience" on Tuesday, April 8. Speaking to industry leaders, government officials, and economic experts, the President stressed the urgency of this new policy direction. He acknowledged that layoffs, or PHK (Pemutusan Hubungan Kerja), are becoming an increasingly significant issue in various sectors, particularly manufacturing, and pledged that the state would not turn a blind eye to struggling workers.

“If there are workers who are abandoned, we must defend them, we must take care of them as best we can. So, we will protect and help workers who are laid off,” said Prabowo firmly. His remarks underline the administration's commitment to social justice and inclusive economic growth.

The task force, according to the President, will be composed of several key stakeholders. These include representatives from the government, labor unions, academic institutions, and the Social Security Administration (BPJS Ketenagakerjaan). The broad composition is meant to ensure that various perspectives are considered in tackling layoffs and their broader impact.

Although the PHK task force formation has not been given an official timeline, its establishment is seen as a priority. Minister of Manpower Yassierli confirmed that the idea had been under discussion long before President Prabowo made it public. “The formation of the PHK Task Force has been proposed for quite some time. It has been discussed internally at the Coordinating Ministry for Economic Affairs. Now, with the President's directive, it becomes a national urgency,” said Yassierli.

He further explained that the Ministry of Manpower has already mapped out the growth and risks in the employment sector, especially in manufacturing. This mapping includes what is called the Industrial Sector Risk Matrix, which will be an essential component in guiding the work of the task force.

"The request to form the Layoff Task Force today is the gong for the use of the matrix," Yassierli explained. This matrix analyzes which sectors are most vulnerable to downsizing and can help predict where the most support will be needed.

The decision by Prabowo Subianto to form the termination of employment task force aligns with his broader vision of economic nationalism, where protecting the domestic workforce is a cornerstone. It also reflects lessons learned from the pandemic era, during which many workers were laid off without adequate support mechanisms. By establishing Satgas PHK, the administration aims to prevent history from repeating itself.

Economic analysts have praised the move as timely and necessary. According to Dr. Aulia Rahman, an economist at the University of Indonesia, the task force could serve as a buffer in times of economic shocks. “This is a smart way to combine labor protection and economic planning. If done right, the task force can intervene before mass layoffs happen, saving thousands of jobs,” Rahman said.

Unions, too, have expressed support for the initiative. The Confederation of Indonesian Trade Unions (KSPI) issued a statement applauding the President’s decision and calling for the task force to be given real authority. “We need more than just a ceremonial task force. It must have the power to negotiate with companies, recommend policy changes, and disburse emergency aid if needed,” the statement read.

Despite the positive reception, challenges remain. The lack of a clear timeline and detailed framework raises concerns about implementation. Indonesia has a history of forming task forces that struggle with coordination and impact due to overlapping bureaucracies. Observers will be watching closely to see how Satgas PHK differentiates itself and delivers on its promise.

In regions where industrial layoffs have already begun, such as West Java and East Kalimantan, local leaders are hopeful. Governor of West Java, Ridwan Kamal, expressed optimism. “A centralized task force backed by national policy will help us work in sync with Jakarta. It’s much needed,” he said.

Meanwhile, small and medium enterprises (SMEs) are requesting that the task force also take their struggles into account. While large corporations often dominate the conversation around layoffs, many SMEs face equally serious challenges but lack the institutional support to weather them.

For many Indonesian families, Prabowo Subianto’s layoff task force could represent more than just a government program — it could mean a safeguard against financial ruin. With millions of people relying on steady employment for their livelihoods, the stakes are high.

President Prabowo’s track record of bold defense and social policies suggests that Satgas PHK will be more than a symbolic gesture. If executed properly, it can set a new standard for labor protection in Southeast Asia and further establish Indonesia as a nation that values its workforce as a key driver of development.

In the coming weeks, the public will be watching for updates on the task force’s composition, its legal basis, and its strategic objectives. While questions remain, the message from the top is clear: no Indonesian worker should face unemployment alone.

The President Prabowo Subianto to form termination of employment task force announcement has opened a new chapter in Indonesia’s labor policy. Whether this initiative can rise to the occasion and meet the complex challenges of a modern workforce will depend on the political will, institutional coordination, and ongoing engagement with the people it aims to serve.

With support from the government, labor groups, and civil society, Satgas PHK could become a landmark in worker protection — not just reacting to crises, but preventing them before they begin.