West Java textile producers eye Central Java<\/p>\n
BANDUNG (JP): The West Java Textile Association (API)
\nreiterated on Tuesday that some of its members are planning to
\nrelocate their factories to Central Java following what they
\nperceive as continuous financial burden.<\/p>\n
The secretary of API, Ade Sudrajat told The Jakarta Post here
\nthat this was not a new issue. "Actually seven garment factories
\nhad moved to Central Java and Bali early this year. They
\nconsidered the Central Java regional regulations more conducive
\nto their business."<\/p>\n
"More than 4,000 workers were dismissed at that time," he
\nsaid, adding that in the near future four or five more factories
\nwould move to Central Java and at least 500 workers would have to
\nbe dismissed.<\/p>\n
API members are owners of textile and textile-product
\nfactories, including garment factories.<\/p>\n
"Just imagine the minimum wage in Central Java is between Rp
\n220,000 and Rp 250,000 per month while a worker in West Java
\nwould be getting Rp 344,000 per month," he said referring to the
\nlatest manpower minister's decree dated Sept. 29, 2000 on the
\nincrease in West Java's minimum wages.<\/p>\n
The decree will take effect from Nov. 1, 2000.<\/p>\n
Sudrajat's statements underlined the chairman of API Lili
\nAsjudiredja's complaint that the textile and textile-product
\nproducers were already burdened by the increase in electricity
\ntariffs.<\/p>\n
The state-owned electricity company PT PLN increased the
\nelectricity tariffs on April 1. The rate was increased by an
\naverage of 29.43 percent but industrial users got a hike of
\nbetween 53 percent and 76 percent.<\/p>\n
Lili said on Monday that mass dismissal would be unavoidable
\nif the factories moved to Central Java.<\/p>\n
He did not reveal the total cost of relocating the textile
\nfactories to Central Java.<\/p>\n
He said preliminary studies had been made and they were
\ncoordinating with the Central Java chapter of API.<\/p>\n
"Surveys indicate that the areas around Pekalongan, Solo
\n(Surakarta) and Yogyakarta are good places for textile
\nfactories," Lili said.<\/p>\n
He said that politically, Central Java was better than West
\nJava. "There are fewer workers' demonstrations in Central Java.
\nTherefore, we expect to be able to do our business more
\npeacefully there."<\/p>\n
API has 600 members, 200 of whom own large factories. The
\ntextile and textile-product subsector employs some 1.8 million
\nworkers in the province.<\/p>\n
Union<\/p>\n
West Java's chapter of the Federation of All Indonesian
\nWorkers Union (FSPSI) regretted the decision taken by some API
\nmembers.<\/p>\n
"They should not have moved merely due to the workers' wage
\nhike. The step will only cause layoffs and dismissal," the
\nsecretary of West Java FSPSI, H. Dardju said.<\/p>\n
"The businessmen should appreciate the workers' efforts in
\nincreasing the factories' revenues. This is unfair treatment to
\nthe workers."<\/p>\n
"The businessmen cry aloud when they suffer small losses but
\nkeep silent when they enjoy big profits. The workers should be
\nregarded as the businessmen's partners, therefore, if the
\nbusinessmen cannot afford to pay the workers, just sit together
\nand talk about it, we (workers) will understand," Dardju said.<\/p>\n
On Monday, the head of the economic office for the West Java
\nprovince, said that the province's revenues would consequently
\ndrop if API members moved their businesses.<\/p>\n
Mustafa said that between 60 percent and 70 percent of the
\ntotal industries in the province were textile and textile-product
\nindustries. "The number of unemployed will also increase."
\n(25\/sur)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/west-java-textile-producers-eye-central-java-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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