Minister of State Secretary (Mensesneg) Prasetyo Hadi has been appointed as the Chairman of the Layoff (PHK) Mitigation Task Force. The task force was formed by the government as a cross-ministerial and institutional coordination body to anticipate a rising wave of layoffs across various industrial sectors and to accelerate the resolution of labor issues.
Prasetyo Hadi’s appointment is a follow-up to Presidential Decree Number 10 of 2026 concerning the formation of the Layoff Mitigation and Labor Welfare Task Force. The government assesses that the existence of this task force is necessary to respond to the growing threat of employment terminations while maintaining business stability and ensuring protection for workers.
As the chairman of the task force, the State Secretary is tasked with coordinating government measures to identify potential layoffs at an early stage, resolve labor disputes more swiftly, and strengthen communication between the government, business players, and labor unions. The task force also serves as a central hub for coordinating various policies related to workforce protection amidst economic pressures.
In addition to anticipating layoffs, the task force plays a role in receiving reports regarding industrial relations issues, including wage disputes, outsourcing systems, and potential company closures. With an integrated coordination path, the government hopes that labor problem resolutions can be carried out faster without going through lengthy bureaucracy.
The government is also preparing various mitigation steps for companies experiencing operational difficulties. Under certain conditions, the state is opening up opportunities to provide support so companies can remain operational, thereby avoiding employment terminations. This policy is part of the government’s commitment to preserving employment amidst global economic challenges.
The Layoff Mitigation Task Force involves various elements, ranging from relevant ministries and labor union representatives to other key stakeholders. The involvement of multiple parties is expected to speed up the exchange of information regarding layoff risks so that preventative measures can be taken before companies execute mass terminations.
The formation of the task force is also a response to the increasing reports of layoff threats in a number of industrial sectors. The government emphasized that protecting workers is a top priority, alongside efforts to maintain the investment climate and business sustainability so that the economy remains capable of absorbing labor.
With coordination led directly by the State Secretary, the government hopes that the Layoff Mitigation Task Force can become a primary instrument in preventing a widespread wave of employment terminations, while simultaneously strengthening protection for workers and maintaining national economic stability.
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