Cosmetics firm Avon denies reports it is leaving Indonesia<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
Cosmetics manufacturer PT Avon Indonesia denied on Friday it was
\nplanning to close its factory in the Cilandak Commercial Estate
\nin South Jakarta and relocate to a neighboring country.<\/p>\n
The public relations manager for PT Avon Indonesia, M.Y.
\nGunawan, said he had a letter from the company's global office in
\nNew York that stressed the company would never leave Indonesia.<\/p>\n
He said that despite security concerns, particularly following
\nthe Bali bombing, and labor issues, including the government's
\nrecent decision to raise the minimum wage, the company would
\ncontinue to do business in the country.<\/p>\n
\"We have no plans (to shut the factory). Our business here is
\nproceeding well and we see good prospects in the future,\" Gunawan
\ntold The Jakarta Post at his company's headquarters in Cilandak.<\/p>\n
He said Avon had no problem competing against local companies,
\nsuch as Sari Ayu, Mustika Ratu and Viva Cosmetics.<\/p>\n
But he complained that foreign cosmetic products were able to
\nenter the country without complying with Ministry of Health
\nregulations.<\/p>\n
If such items are locally produced they are required to obtain
\npermits and must comply with standardization rulings from the
\nhealth ministry to guarantee the safety of users before they are
\nallowed to be sold.<\/p>\n
\"Many imported products easily enter the country without
\nfulfilling the standardization bureaucracy,\" he said.<\/p>\n
Gunawan said PT Avon Indonesia, which has been in the country
\nsince 1989, produces about 500 cosmetic products and underwear,
\nmostly for women.<\/p>\n
The head of the City Investment and Business Empowerment
\nAgency, Hari Sandjojo, told the City Council's Commission B for
\neconomic affairs on Thursday that one of the directors of Avon
\ndisclosed to him the company's plan to close its Indonesian
\nsubsidiary.<\/p>\n
Hari repeated his statement to reporters after the hearing
\nwith the commission.<\/p>\n
Gunawan confirmed there would be a meeting later this month
\nbetween Avon's directors and city administration officials, but
\nhe said he did not know what would be discussed.<\/p>\n
He declined to comment on Hari's claim, and he also said he
\ndid not know from where Hari got his information.<\/p>\n
\"All I can say to you is that the news reports were wrong. If
\nyou want to get more information, you should meet with our
\npresident director, Mr. Agung Karsosardjono. But, unfortunately,
\nhe is out of town right now. You should come back and meet with
\nhim,\" he said.<\/p>\n
Gunawan said media reports quoting a city administration
\nofficial as saying PT Avon Indonesia would be closed had caused
\nworry among the company's hundreds of workers.<\/p>\n
He added that the workers had been calmed by assurances from
\ncompany executives that the reports were untrue.<\/p>\n
\"The PT Avon Indonesia president director explained the matter
\nto the employees, telling them the news report was not true. All
\nof the employees are happy now,\" Gunawan said.<\/p>\n
He said the company has some 800 permanent employees at its
\ncentral headquarters in Cilandak and its 76 outlets in Java,
\nSumatra, Kalimantan, Bali and Nusa Tenggara. As many as 250,000
\nwomen help in the direct sale of Avon products.<\/p>\n
Earlier, electronics producer Sony announced it would close
\nits Indonesian audio manufacturing plant next year, citing a
\nnumber of factors, including labor disputes and the smuggling
\ninto the country of cheap electronic goods.<\/p>",
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