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As many as half a million could loose their jobs by mid year

Detik.com - January 20, 2009

Nurseffi Dwi Wahyuni, Jakarta – As many as 500,000 casual, contract and permanent workers will loose their jobs if no orders come in to ensure industrial activity continues.

This was conveyed by Indonesian Employers Association (Apindo) Chairperson Sofyan Wanandi during a break in the 4th International Conference & Exhibition (INDOGAS 2009) at the Jakarta Convention Center on Tuesday January 20. “If there are no orders, half a million casual, contract and permanent workers will be dismissed [by] mid year. This is the last course that we will choose”, explained Wanandi.

According to Wanandi, sackings will not take place in the first six months of the year because of activities related to the general elections, which will result in increased consumption. “The elections will use up between 5 and 10 trillion rupiah for the consumption of food, beverages, clothing and flags, and that will assist our industries”, he said.

In order to anticipate these dismissals, Wanandi is hoping that the government will allocate a 27.5 trillion rupiah stimulus package to invigorate labour intensive industries. “In addition to this [assistance is needed] for small- and medium scale enterprises and local content so that [we] don’t have to import. Such as the continued construction of people’s housing”, he explained.

Wanandi also conceded that there are already small- and medium scale enterprises that are collapsing. They are unable to survive because they have depleted their capital. “Some are unable to survive because they have no money. But not a large number, there are still many that are surviving because in the first nine months of 2008 we were fortunate”, he said.

Wanandi said that 2009 would be a difficult year for business and employers. This can be seen from the drop in the number of orders in sectors such as the automotive industry where there has been a decline of as much as 20-30 percent. (epi/lih)

[Translated by James Balowski.]

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