Economic Slowdown: Media and Key Sectors Layoffs Hit Indonesia

Indonesia is experiencing a surge in mass layoffs across major industries, with the media and broadcasting sectors among the most affected. Amid shifting audience preferences and economic challenges, major television networks are closing regional offices and slashing hundreds of jobs.

On May 2, 2025, the X account @PartaiSocmed posted a list of mass layoffs in national TV networks. Kompas TV reportedly dismissed hundreds of employees. MNC Group’s GlobalTV laid off 30% of its production team, and the group itself reportedly cut 400 staff. RTV also reduced around 40 employees per division, while iNews allegedly shut down all regional operations.

The layoffs reflect declining TV viewership. According to GoodStats (October 2024), 57% of respondents said they hadn’t watched local television in months, while 4% never watched it at all.

“Television audience numbers have declined in recent years,” said TVRI President Director Iman Brotoseno, as reported by gelora.co.

The rise of digital platforms like YouTube, Netflix, and Prime Video has changed consumer behavior. Local TV channels now struggle to compete for viewers and ad revenue. One social media user commented,

“People now prefer watching YouTube. Even on smart TVs, YouTube is the go-to.” Another added, “TV content is often cringe and repetitive.”

Press Council: Media Layoffs Often Go Unreported

Ninik Rahayu, Chair of the Press Council, expressed concern that many media layoffs are not being reported. “Some media outlets may have shut down operations without notifying us,” she said on May 3, 2025, during a World Press Freedom Day event (Tempo.co).

According to her, layoffs are ongoing. Reports claim Kompas TV cut 150 workers, CNN Indonesia TV let go of 200, TvOne laid off 75, and Emtek 100. Viva.co.id is said to be closing its Pulogadung office next month.

“Seventy-five percent of national advertising spending is going to global digital platforms,” Ninik said, noting that this has drastically reduced local media revenue. Data from the Press Council shows over 1,200 media workers were laid off between 2023 and 2024.

PT Visi Media Asia Tbk Director Niel Tobing denied rumors that TvOne carried out mass layoffs or that Viva.co.id was closing its office. He clarified that the company is merely relocating to TCI Epicentrum. Meanwhile, two Kompas TV employees confirmed layoffs had occurred, though the network has not issued an official statement.

42% of Companies Cut Staff in 2024

The job cuts extend beyond media. Jobstreet’s Hiring, Compensation, and Benefits 2025 report shows that 42% of Indonesian companies either laid off staff or left roles unfilled in 2024. The most affected roles were:

  1. Administration & HR – 29%
  2. Management – 22%
  3. Accounting – 16%
  4. Marketing – 15%
  5. Manufacturing – 14%

Ironically, these are also among the most in-demand roles, highlighting mismatches in the job market.

Despite widespread layoffs, nearly all companies surveyed still posted at least one job opening in 2024. According to the Central Statistics Agency (BPS), the national workforce increased by 4.7 million people as of August 2024.

Weak Growth and Deflation Signal Economic Challenges

Indonesia’s Q1 2025 GDP data is expected to show slower growth. Mandiri Bank Chief Economist Andry Asmoro predicts growth of just 4.91% year-on-year, due to weaker household spending and slower government disbursement. Manufacturing also slumped, with Indonesia’s PMI dropping to 46.7 in April 2025—its lowest since August 2021.

Coordinating Minister Airlangga Hartarto attributed the downturn to global trade tensions and emphasized the government’s push for trade agreements and deregulation to boost exports.

Other Sectors Also Struggling

The hospitality and textile industries are also feeling the strain. Hotels that previously relied on government events are seeing cancellations due to reduced state spending.

“Many hotels are no longer hiring daily workers,” said PHRI Secretary-General Maulana Yusran, as reported by cnbcindonesia.com.

Meanwhile, two months of deflation have raised concerns about falling consumer demand. Sellers in markets such as Mangga Dua are experiencing a sharp drop in income due to weakening consumer purchasing power.

“Now we barely earn Rp 50,000 a day,” said one trader.

 

Source: gelora.co, tempo.co, detik.com, cnbcindonesia.com

Photo Credit: freepik.com

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