West Java Leads Indonesia in layoffs as investment inflows decline in 2026
Indonesia’s Ministry of Manpower reports that West Java recorded the highest number of layoffs from January to August 2026, while investment in the province fell sharply.
According to data from the Ministry of Manpower’s Satudata system, 10,880 Indonesian workers lost their jobs between January and August 2026, excluding resignations, retirements, disabilities or deaths. West Java alone accounted for 4,626 layoffs in the first quarter and 4,954 in the second, making it the province with the most dismissals. Other provinces with high layoff numbers included Banten (6,303), East Java (5,400) and Central Java (4,769).
Conversely, provinces such as Gorontalo and Maluku reported fewer than 100 layoffs each. Statistics Indonesia noted that West Java absorbed 205,000 workers in February and May, yet unemployment in the province rose to 1.79 million. Investment figures from the Ministry of Investment and Downstreaming show foreign direct and domestic investment fell from Rp76.8 trillion in Q1 to Rp61.3 trillion in Q2, totaling Rp138.1 trillion for the first half of the year, far short of the Rp296.8 trillion recorded for the entire previous year.
Why it matters
Rising layoffs alongside falling investment signal a weakening economic outlook for Indonesia’s most populous province.
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