Metalworkers' jobs at risk from downturn<\/p>\n
Nana Rukmana, The Jakarta Post, Cirebon<\/p>\n
The increase in fuel prices and a shortage of raw materials have
\nleft 23 metal factories in Cirebon on the brink of bankruptcy and
\nhundreds of workers' jobs at risk, an official says.<\/p>\n
Cirebon Metalwork Producers Association coordinator Ade
\nSaefudin said government intervention was badly needed to save
\nhundreds of workers from imminent dismissal.<\/p>\n
"If production costs remain high, we predict the firms will
\neventually go out of business," Ade said.<\/p>\n
He said the industry had started to feel the pinch since the
\nfirst fuel price increase in March this year when the price of
\nraw materials from Surabaya increased by up to 100 percent.<\/p>\n
"Another fuel price increase in October has exacerbated the
\nsituation, with the increase in metal prices by 26 percent. This
\nis a terrible blow to small-scale entrepreneurs like us."<\/p>\n
He said the price of raw materials before the fuel price hike
\nwas between Rp 2,500 and Rp 3,000 a kilogram, which had surged
\nfrom Rp 5,250 to Rp 5,500 a kg now.<\/p>\n
The price of metal pipes has also increased sharply; between
\nRp 3,500 and Rp 4,000 a kg. to Rp 6,500 and Rp 7,000 a kg.<\/p>\n
Ade said most of the companies produced household articles,
\nsuch as fences and kitchen utensils.<\/p>\n
Ganef Sugiarto, the owner of Pt Marta Putra Jaya in Jadimulya
\nvillage, North Cirebon, said the price of a kilogram of aluminum
\nused to be Rp 8,000 but had surged sharply, he said.<\/p>\n
"The price also fluctuates and has the tendency to gradually
\nrise. It has increased again by Rp 1,500 a kg. just within the
\npast week to Rp 13,500 per kg. now," said Ganef.<\/p>\n
Ganef said aluminum producers in Cirebon were becoming more
\npessimistic about manufacturing household items like cooking pots
\nand frying pans.<\/p>\n
"We had hoped scrap metal traders would supply us with the raw
\nmaterials but they now prefer to sell them to bigger traders in
\nJakarta for export."<\/p>\n
Ganef said the community-based industry was under the threat
\nof a total shutdown if the problem with raw materials was not
\nsolved.<\/p>\n
The family-run enterprises employ around 200 workers.<\/p>\n
Ade said workers in the metalwork sector earned a "reasonable"
\nwage above the regional minimum of between Rp 25,000 (US$2.50)
\nand Rp 30,000 a day.<\/p>\n
Ganef said neither regional nor central government had done
\nanything to help the sector.<\/p>\n
"There has been no attention from the government as yet, and
\nthis has let us down."<\/p>",
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"sponsor": "Okusi Associates",
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