Kadin Prepares Solution to Handle Mass Layoffs and Budget Cuts

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Rabu, 28 Mei 2025 - 19:30 WIB

Jakarta, VIVA – The hospitality industry in Indonesia is currently facing heavy pressure, threatening business continuity with risks of closures and mass layoffs.

The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, admitted that this matter is also being discussed internally within Kadin, along with the leadership board of Kadin Indonesia’s Business Council.

Through discussions with Council members such as Chairul Tanjung, Sofyan Wanandi, and others, Bakrie explained that the layoffs in the hotel sector are a consequence of budget-cutting efforts being pushed by both the government and the business sector.

"I’ve spoken with members of Kadin’s Business Council like Mr. Chairul Tanjung, Mr. Sofyan Wanandi, and many others. They all agree that the tourism, hospitality, and property sectors are among the hardest hit. We know this is due to cost-efficiency measures," Bakrie remarked on Wednesday (May 28).

Even so, Bakrie acknowledged that the government’s efficiency steps are not without reason, but are rather an effort to reallocate budgets toward more productive sectors.

"Obviously, we at Kadin will evaluate this and try to figure out what the solution might be," he added.

The Kadin chairman also admitted that these efficiency steps stem from an ongoing economic slowdown—both nationally and globally.

In response, the government is taking anticipatory measures, including across-the-board budget cuts.

"The problem, as everyone already knows, is that we’re experiencing an economic slowdown. That’s why cost-cutting is happening everywhere, including in the workforce," Bakrie remarked.

"We, at Kadin are working to formulate what kind of solution or strategy might work. Because these efficiency measures have already been mandated by the leadership," he concluded.