Industrial Competitiveness and Productive Investment Key to Job Growth

Indonesia must prioritize strengthening industrial competitiveness and boosting productive investment to ensure the long-term sustainability of employment, especially as the economy navigates dynamic changes. While the government has implemented mitigation measures, including a task force to address layoffs and a substantial worker protection fund, experts stress the need for continued support to foster business growth and create lasting job opportunities.

Djusman H. Umar, Chairman of FSP BUMN Bersatu, highlighted the importance of policies that not only protect workers but also fortify the business ecosystem. He commended the government's "Satuan Tugas Mitigasi PHK" (Task Force for Layoff Mitigation) and the allocation of approximately Rp500 trillion for worker protection, viewing these as clear signs of state support. However, he emphasized that businesses also require space to expand, invest, and maintain their workforce.

A key area for focus is balancing government financing needs with the availability of funds for the productive sector. Ensuring that industries, manufacturing, and Small and Medium Enterprises (SMEs) have broader access to financing is vital for increasing business capacity. Adequate funding directly supports investment, business expansion, and the creation of new jobs. Conversely, limited access to capital can put significant pressure on companies, hindering their development.

Indonesia's national competitiveness also requires attention. The IMD World Competitiveness 2025 report ranked Indonesia 40th out of 69 countries, indicating a need to enhance labor productivity to compete regionally and globally. Djusman suggests this situation presents an opportunity to accelerate industrial transformation towards high-value-added manufacturing, improve worker productivity, and strengthen the investment climate.

To achieve these goals, FSP BUMN Bersatu advocates for fiscal consolidation, expanded access to productive financing for industries and SMEs, accelerated innovation-driven industrial transformation, simplified regulations and bureaucracy, increased investment in vocational education and technology, and a strengthened ecosystem for businesses. The ultimate aim is to ensure that economic policies continuously drive productive investment and business growth, thereby securing sustainable employment.

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The government's steps show the state's presence in protecting workers. However, strengthening the business world also needs to be continuously encouraged so that companies have room to grow, invest, and maintain labor absorption.