Minister Thohir vows to protect employees from budget cut effects

id layoff,erick thohir,soes ministry,budget cuts,budget efficiency

Minister Thohir vows to protect employees from budget cut effects

State-owned Enterprises Minister Erick Thohir (in black) during a meeting with parliamentarians in Jakarta on Thursday (February 13, 2025). (ANTARA/Putu Indah Savitri)

Jakarta (ANTARA) - State-Owned Enterprises (SOEs) Minister Erick Thohir voiced his commitment to protecting his employees from possible layoffs resulting from financial pressure following President Prabowo Subianto's budget efficiency policy.

"We have not yet reduced the number of employees until today. With the available budget, we will try to keep our employees, including office boys and security guards," he remarked during a meeting with Commission VI of the House of Representatives (DPR) in Jakarta on Thursday.

As a result of the president's policy, the budget ceiling of the SOEs Ministry has been slashed from Rp277.4 billion (US$17 million) to Rp161.9 billion (US$9.8 million).

In addition to eluding layoffs, Thohir affirmed that the Ministry of SOEs would strive to ensure that its employees can continue to enjoy basic personnel facilities, such as access to clinics and daycare.

"We seek to protect our employees' rights to personnel facilities, such as clinics, daycare, and some others," he pointed out.

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The minister then outlined the impacts of the budget cuts on the Ministry of SOEs, noting that his side has decided to lower the funds allocated for official trips and leaders' facilities, as well as souvenirs usually procured to welcome foreign guests.

"We will try to look for more affordable souvenirs," he stated.

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Thohir remarked that the budget efficiency push had also led to the SOEs Ministry opting to join meetings with the Asian Development Bank and International Monetary Fund virtually and not attending an awarding ceremony in the United Arab Emirates (UAE).

"Earlier, we received an invitation from the UAE, with whom we collaborated on the development of the Cirata Floating Solar Power Plant, which is the largest of its kind in Southeast Asia. They wanted to present us an award," he noted.

He remarked that the SOEs Ministry has sent a letter to the invitee informing them of its inability to come.