DPR Proposes Tax Relief to Prevent Mass Layoffs

Member of the House’s Commission IX, Irma Suryani, on 6 November 2025 proposed that the government provide stimulus and tax relief to prevent a wave of layoffs (PHK) in companies. The proposal follows mass dismissals at a tire factory in Cikarang, West Java.

She noted that reduced consumer purchasing power lowers demand and production, prompting firms to cut staff. Tax relief (lowering tax burdens) and fiscal stimulus are intended to reduce operating costs so businesses can retain employees.

Commission IX is drafting amendments to the Labour Law and supports tax deregulation to ease business operations while safeguarding workers’ rights. The measures will be monitored alongside the government’s stimulus package and future fiscal policies.