Geopolitical tensions trigger thousands of layoffs across East Java's key sectors
East Java recorded 6,154 job losses, the third-highest in Indonesia, as weaker export demand and rising costs drive layoffs in timber, textiles and other industries.
Data from the Manpower Ministry show that East Java has seen 6,154 workers lose their jobs, ranking the province third in Indonesia for layoffs as of September. West Java leads with 13,044 dismissals, followed by Banten, Central Java and Jakarta. Within East Java, six districts account for the bulk of the cuts, with Jombang reporting 1,462 layoffs, and smaller numbers in Madiun, Sidoarjo, Surabaya, Gresik and Mojokerto.
The sectors most hit are timber and furniture, textiles, footwear, automotive components and pulp and paper, driven by weaker export demand, geopolitical uncertainty, rising production costs and automation efforts. Sugeng Lestari, head of industrial relations at the East Java Manpower and Transmigration Agency, warned that the surge in unemployment benefit claims should not be taken as the sole indicator of the province's employment health. He emphasized that East Java's ranking alone does not fully capture the complexity of the labour situation.
Why it matters
The layoffs highlight how global instability is directly affecting Indonesia's manufacturing workforce and regional economies.
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