President Prabowo Subianto has officially issued Presidential Decree No. 10 of 2026, establishing a legal framework for the formation of the Task Force for Layoff Mitigation and Labor Welfare. This strategic move aims to strengthen the government’s commitment to industrial stability and worker protection.
“Do not worry; we will defend the interests of our workers. We will protect those who are threatened by layoffs,” President Prabowo declared during the 2026 Labor Day commemorations at the National Monument (Monas) on Friday (1/5).
The initiative to form this specialized task force has been a key promise of the Prabowo administration since April 2025. Although the regulation was originally slated for completion and delivery to labor unions by November 2026, the recent issuance of the decree signals an accelerated effort to address labor concerns.
As outlined in early 2025, the task force will be a collaborative body comprising representatives from the government, labor unions, academic institutions, and the Social Security Administering Body (BPJS). While the foundation is now in place, the Head of State has yet to release a detailed schedule for the task force’s full implementation.
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The All-Indonesia Workers Union Confederation (KSPI) has indicated that the task force may take the form of a National Labor Welfare Council (DKBN). One of the primary objectives of this council will be to proactively monitor and anticipate potential mass layoffs, ensuring that any affected workers receive their full legal rights and entitlements.
Structurally, the DKBN is expected to be led by a chairman who will concurrently serve as one of five commissioners. Each commissioner will be assigned specific portfolios focused on enhancing various aspects of domestic labor welfare.
Recent data from the Ministry of Manpower (Kemnaker) suggests a positive trend in the labor market. Between January and April 2026, the number of layoffs was recorded at 8,389 people. This figure represents a 65% decrease compared to the same period in 2025, which saw 24,036 layoffs reported as of April 23.
Indah Anggoro Putri, the Director General of Industrial Relations Development and Manpower Social Security, clarified that these statistics are the cumulative total for the first four months of 2026.
Complementing the new task force, Minister of Manpower Yassierli stated that the government has already established an “early warning system” to detect potential waves of unemployment before they occur. This system relies on cross-ministerial collaboration and is managed through coordination forums led by the Coordinating Ministry for Economic Affairs.
“The government has an early warning system in place. It functions through cross-ministerial coordination, including strategic meetings led by the Coordinating Minister for Economic Affairs,” Yassierli explained during a session at the Senayan Parliamentary Complex in Central Jakarta on Thursday (9/4).
Summary
President Prabowo Subianto has issued Presidential Decree No. 10 of 2026 to establish the Task Force for Layoff Mitigation and Labor Welfare. This collaborative body, which includes government officials, labor unions, and academics, is designed to protect worker interests and maintain industrial stability. The task force is expected to function as a National Labor Welfare Council that proactively monitors potential mass layoffs and ensures legal protections for affected employees.
The government reported a 65% decrease in layoffs during the first four months of 2026 compared to the same period in the previous year. To support these efforts, an early warning system has been implemented through cross-ministerial coordination to detect potential unemployment waves before they occur. These combined initiatives reflect a strategic focus on strengthening labor welfare and managing industrial relations effectively.
