Indonesia Responsively Protects Hotel Workers, Anticipates Layoffs Early
By: Kurnia Dewanto
The government is now taking a more active role in addressing the threat of mass layoffs (PHK) which is a serious concern in the hotel sector in various regions, especially in Jakarta. This situation demands quick and measured steps because the impact is not only on the continuity of the hotel business, but also on the fate of thousands of workers who depend on this industry for their livelihood.
In an economic condition that has not fully recovered, the government is not sitting idly by. Various initiatives have been initiated, one of which is through the Governor of DKI Jakarta, Pramono Anung, who chose the strategy of increasing large and small scale events in various parts of the city as a form of direct intervention. The goal is clear, namely to increase hotel occupancy so that business actors are not forced to lay off their employees.
The Governor of DKI Jakarta, Pramono Anung, highlighted the serious commitment of the provincial government in dealing with the threat of layoffs in the hotel sector. One of the steps that has been taken is to establish coordination with the Indonesian Hotel and Restaurant Association (PHRI), which was then followed up by strengthening the strategic activity agenda to increase the flow of tourist visits to the capital city. According to Pramono, holding events such as running competitions, music concerts, and art festivals not only increases visitor traffic, but also extends the length of stay of tourists, which directly supports the hotel business.
Data and observations show that Jakarta has hosted a number of major activities during June, ranging from three to four sporting events to national-scale music performances such as Soundfest. This dynamic has a positive effect on the sustainability of the hotel business, considering that the sector is highly dependent on stable occupancy rates.
The steps taken by the DKI Jakarta Provincial Government are also in line with the policy of the Central Government which has begun to relax several restrictions and budget efficiency. This condition opens up opportunities for recovery for hotel business actors who were previously under pressure. Pramono assessed the surplus in April 2025 as a positive sign that government policies are starting to show results, and he expressed his full commitment to continue supporting these steps.
Support for the DKI Provincial Government’s strategy also came from the Head of the Jakarta PHRI DPD, Sutrisno Iwantono, who highlighted the importance of equalizing the implementation of events throughout Jakarta, including central, east, west, and south. According to Sutrisno, increasing the flow of visits in each region will create wider demand for accommodation services, thereby reducing the potential for layoffs.
However, the threat of layoffs is still a challenge. Sutrisno said that currently, several hotels have been forced to reduce the number of workers due to low occupancy. Around 10 to 30 percent of employees in this sector have been affected, depending on the conditions of each hotel. When the occupancy rate only reaches 40 percent, the need for workers automatically decreases.
The decline in people’s purchasing power is one of the main factors that Sutrisno said was the cause of the weakening of this sector. On the other hand, the government’s spending efficiency policy also adds pressure. As the number of meetings or conferences that are usually held in hotels decreases, the income of this business has also decreased. He proposed that levies such as Land and Building Tax (PBB) be reviewed so that the operational burden does not become heavier.
Meanwhile, Commission VII of the Indonesian House of Representatives also expressed concern about the threat of layoffs in the hotel and restaurant sector. Siti Erma Mukaromah, a member of Commission VII, stated that the DPR had received reports showing a downward trend in business in this sector, which could lead to mass layoffs if not handled systematically.
According to her, this problem was triggered by various variables ranging from global economic uncertainty, high inflation, and declining purchasing power, to technological disruption that changed people’s consumption patterns. The government continues to adapt and facilitate digital transformation in the tourism sector in order to be able to answer this challenge. Budget savings implemented by both the private sector and government agencies have contributed to the decline in hotel occupancy rates. In this situation, she emphasized the importance of implementing a sustainable strategy in the long term. Commission VII is currently discussing the Tourism Bill (RUU) which is expected to be able to revitalize the entire national tourism ecosystem.
