March Spotlight: What’s Happening in the World of HR?

Labour Law / HR Law

US Import Tariff Hike: What’s the Impact on Jobs in Indonesia?

The United States’ import tariff policy—especially the increase in tariffs on steel and aluminum from 10% to 25% starting March 12, 2025—has raised concerns about Indonesia’s export sector and employment. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that despite efforts to diversify exports and strengthen domestic industries, the risks of mass layoffs, hiring freezes, and delays in foreign investment remain.

Labor-intensive industries such as textiles, electronics, and automotive are expected to be the hardest hit due to rising costs of imported raw materials, which may lead to workforce reductions or halted new recruitment. On the other hand, sectors like renewable energy, healthcare, and e-commerce have shown resilience or even growth, driven by innovation and increasing market demand.

To navigate these challenges, companies in Indonesia must take strategic steps in response to the changes. What steps are needed?

Read more here: Tariff War Alert: Impact of US Tariff Policy on Jobs in Indonesia

Corporate Info

Sudden Layoffs at PT AVO: Employees Disappointed by the Execution

PT AVO Innovation & Technology, a skincare company from Yogyakarta known for its Avoskin brand, has sparked controversy after carrying out sudden layoffs on March 21, 2025. The decision came as a surprise due to the lack of prior notice, leaving affected employees unprepared.

The layoff process also drew criticism for being inhumane. Affected employees were summoned to the office under the pretense of a town hall meeting, and those living outside the city were asked to return to Yogyakarta on short notice. Reports also stated that employees faced restrictions, such as being banned from parking in the office area and being closely monitored by security personnel.

PT AVO’s actions have sparked public backlash and concern among worker communities, highlighting the need for transparency and ethics in layoff policies. Many questioned whether the company followed proper legal procedures in executing this mass layoff.

Yupi Goes Public, Plans New Factory and Global Expansion

PT Yupi Indo Jelly Gum Tbk (YUPI), a candy manufacturer based in Yogyakarta, officially went public on the Indonesia Stock Exchange on March 25, 2025, raising IDR 2.04 trillion from its initial public offering (IPO).

The IPO funds will be allocated to build a new factory in Nganjuk Regency, East Java, with an estimated cost of around IDR 437.50 billion. The factory is expected to begin operations in 2026. The remaining funds will support business expansion into domestic and international markets, including for operational costs, inventory, and hiring.

YUPI’s President Director, Yohanes Teja, stated that this expansion strategy is aimed at growing YUPI’s global footprint and strengthening its position as a domestic market leader. The company posted a 10% year-on-year (YoY) profit increase to IDR 484 billion as of September 2024, with an average annual profit growth of 19.6% from 2021 to 2023.

Job Opportunities: Openings in Japan and PT Freeport Indonesia

Japan is currently offering job opportunities for Indonesian citizens to work as truck drivers in the logistics sector, which is currently facing a labor shortage. These positions are part of the Specified Skilled Worker (SSW) visa program, which allows foreign workers with specific skills to work in Japan.

Applicants must pass a transportation skills test, understand Japanese traffic regulations, and have Japanese language proficiency equivalent to N3. They also need to convert their foreign driver’s license into a Japanese license before beginning work. Several Japanese logistics companies—such as Sakai Moving Service, Fukuyama Transporting, and Senko Group Holdings—have already begun recruiting and training foreign drivers, including Indonesians. More information on these job openings can be found on YOLO Japan’s site: https://www.yolo-japan.com/en/recruit/feature/driver_fulltime.

Meanwhile, PT Freeport Indonesia is also hiring for several positions at its smelter facility in Gresik, East Java. Available roles include positions in engineering, operations, and administration, with specific requirements depending on each job. Further details on requirements and applications can be found on PT Freeport Indonesia’s official careers site: www.careers-page.com/freeportindonesia.

Find Your Next Career Opportunity at RecruitFirst Indonesia!

Looking for a new career opportunity? Several leading companies are currently hiring for various positions across different industries. Open roles span across technology, marketing, customer service, and management.

For more detailed information, please visit the job openings section on the RecruitFirst Indonesia website.