Aldira Sunrise 10 September 2024

Economy: The storm of layoffs continues
Ministry of Manpower reported 10,799 layoffs in Indonesia last July. The figure was the highest so far this year, bringing the total number of layoffs during 2024 to 42,863 people, a 36% jump compared to the 7M23 period. This increasingly large wave of layoffs has the potential to bring the total layoff figure for workers in Indonesia this year to surpass last year, which was the highest since 2021, reaching 64,855 laid-off workers. The spike in layoffs mainly occurred in Central Java Province. Referring to the same data, 9,442 workers lost their jobs last July bringing the total layoffs in the province to 13,722 layoffs in 7M23. The storm of layoffs in Indonesia is taking place in line with the situation in manufacturing activities which is increasingly deteriorating. In July, as reported by S&P Global, the Indonesian Manufacturing Purchasing Manager’s Index (PMI) fell into the contraction zone for the first time at 49.3, the lowest since August 2021. (Bloomberg)
CNAF’s financing receivables increased 39.31% on July 24
CIMB Niaga Auto Finance (CNAF) recorded financing receivables of IDR 9.94T in July 24 (+39.31% yoy), exceeding 134% of IDR 7.42T FY24 target. CNAF’s strategies to boost performance in 2024 are to develop digitalization and continue the referral program with Bank CIMB Niaga. In comparison, the Financial Services Authority (OJK) recorded a growth in total financing receivables managed by multi-finance companies of 10.53% yoy, reaching IDR 494.1T in July 2024. Despite experiencing an annual increase, total financing receivables in July 2024 slowed down slightly compared to June 2024 which was recorded at IDR 492.17T. (Kontan)