House Speaker Speaks on Waves of Layoffs in Bali, Urges Govt to Evaluate Budget Cuts

TEMPO.CO, Jakarta - The Indonesian House Speaker Puan Maharani speaks up about the recent wave of layoffs in Bali, urging the central government to take anticipatory measures in the face of a larger wave of worker terminations. 

The PDIP politician calls for the formation of a National Task Force on Layoffs, with a focus on affected areas such as Bali, Batam, and other industrial regions. "It is crucial to review the budget cuts policy. Efficiency is indeed a good thing, but it must still support the grassroots economy. Sectors such as MICE (meetings, incentives, conventions, and exhibitions), which have a high multiplier effect, cannot be equated with regular bureaucratic spending," said Puan in a written statement on Friday, June 13, 2025.

She believes that the wave of layoffs in Bali is a clear reflection of the vulnerability of the national labor structure, especially in regions heavily dependent on specific sectors.

The cases of layoffs in Bali, she says, cannot be considered as sporadic, as they occur due to cause and effect. "And the government must be able to address this challenge," says Puan. 

Puan warns of the impact layoffs have on economic growth, both due to weakening industries and the declining purchasing power as thousands of workers lose their livelihoods.

Neither the central nor local government has implemented concrete and measurable mechanisms to respond to the widespread layoffs, according to Puan. "This includes the absence of a ready-to-implement retraining scheme and support for laid-off workers who decide to become small-scale entrepreneurs or workers in the informal sector," she says.

Puan also urges the government to integrate ministerial programs such as digital training, job sector transition, and tourism-based SMEs. According to her, the existence of special incentives for the hospitality and manufacturing sectors has been proven to absorb a large number of local workers.

She also assesses that the transition of layoffs from the manufacturing sector to the tourism sector signals the unpreparedness of the national labor system to face economic pressures. Additionally, regions such as Bali, which has long been an icon of Indonesian tourism, also seem to be left to face the crisis alone.

Puan warns against the loud narrative of a thriving economic growth in the central government but sluggish in the regions. "If the country fails to appear in the midst of this labor crisis, then public trust will slowly crumble," she said.

Puan stresses that layoffs are not just a matter of statistics but also a social issue that impacts the lives of millions of families in Indonesia.

"The government must prove that the state is not only good at speaking on conference stages but also responsive in protecting workers who have lost their jobs, and some have also lost their hope," says the Speaker of the House.

Previously, around 100 workers in the tourism sector in Bali were laid off since the beginning of this year. It was reportedly caused by the sluggish MICE activities in the Badung hotel.

In a recent case, 70 employees of PT Coca Cola Bottling Indonesia were also affected by layoffs. The factory located in Desa Werdi Bhuwana, Kecamatan Mengwi, Badung, Bali, is set to close on July 1, 2025.

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