Govt Must Anticipate Potential Layoffs Amid Global Volatility: House

RRI.CO.ID, Jakarta - The Indonesian House of Representatives’ Commission VII emphasized cross-sector collaboration to anticipate a potential surge in layoffs amid global geopolitical uncertainty.

Team Leader of Commission VII’s Recess Working Visit, Erna Sari Dewi, stressed that cooperation among government ministries and agencies, regional administrations, and the House as a supervisory body is crucial to mitigate the impact of global economic uncertainty on the industrial and employment sectors.

“We need well-planned policy measures, such as Plan A, Plan B, and Plan C, to minimize the effects of global uncertainty,” said Erna in her statement on Friday, March 6, 2026.

Earlier, Commission VII visited PT Garuda Food Putra Putri Jaya in Driyorejo, Gresik Regency, East Java. The visit was aimed at strengthening the national food and beverage industry, particularly the agro-based processed food sub-sector.

On that occasion, Commission VII also encouraged local administrations to provide incentives to the agriculture and plantation sectors to strengthen the availability of local raw materials for the food and beverage industry.

According to Erna, local administrations need to encourage farmers to cultivate industrial commodities such as peanuts as raw materials for food products.

“Indeed, peanuts are not the first choice for many farmers. Therefore, local administration needs to be creative in providing incentives to encourage farmers to cultivate peanuts to support local raw materials,” said Erna.

Commission VII also highlighted the potential impact of conflicts in Iran and the Middle East on Indonesia’s food and beverage industry supply chain. These geopolitical tensions could hamper supply and increase logistics costs for imported raw materials.

Several raw materials at risk include cocoa and its derivatives, processed cereals such as flour and starch, and dairy products. Packaging materials like plastic and its derivatives are also vulnerable to supply disruptions.

Strengthening local raw materials is therefore considered a strategic step to maintain stability in the food and beverage industry while minimizing the impact of global uncertainty on the industrial and employment sectors. (Gusti Panji/Lasti Martina)