Menperin: The Manufacturing Industry Will Absorb 1.08 Million New Workers In 2024

The Minister of Industry, Agus Gumiwang Kartasasmita, announced that the manufacturing sector is expected to create 1.08 million new jobs in 2024. This figure significantly exceeds the number of workers facing layoffs across various sectors. According to the National Industrial Information System (SIINas), the manufacturing industry, which will begin operations in 2024, will employ 1,082,998 new workers. In contrast, data from the Ministry of Manpower indicates that 48,345 workers across all economic sectors will be laid off in 2024.

"Many manufacturing companies are emerging and starting production, leading to a greater number of new jobs compared to those affected by layoffs," Agus stated in a press release on Tuesday (March 4, 2025).

Increasing Job Absorption Ratio

The Minister explained that the ratio of new jobs created in the manufacturing sector compared to the number of layoffs is on the rise. SIINas data reveals that in 2024, the ratio of new job creation in manufacturing to the number of laid-off workers reached 1 to 20. This means that for every worker laid off, the manufacturing sector can create and absorb 20 new jobs.

This ratio has improved since 2022, when it was 1:5, then 1:7 in 2023, and now stands at 1:20 in 2024. This increase indicates that the job absorption performance of Indonesia's manufacturing sector is getting better. Agus noted that this growth reflects the resilience of the manufacturing industry amid various global economic challenges. Additionally, the workforce in the non-oil and gas processing industry has grown from 17.43 million in 2020 to 19.96 million in 2024.

Reasons for Factory Closures and Layoffs In response to reports about the closure of several factories and mass layoffs, Agus identified several contributing factors: a decline in export demand, mainly due to the slowdown in the global economy; management errors that disrupt operational efficiency; business strategies, including decisions to relocate production closer to markets; competition from imported products flooding the domestic market; and limitations in raw materials and outdated production technology, which reduce product competitiveness. Agus noted that some of these factors, particularly export demand, are challenging to control. However, the Ministry of Industry will continue to seek solutions, especially regarding raw material availability and industrial technology development. "We also encourage collaboration among ministries to find the best solutions, including policies related to safeguards, limited import bans, and non-tariff barriers to protect domestic industries," he concluded.

Tag: Agus Gumiwang Kartasasmita Menperin National Industrial Information System