130,000 workers in Bali may lose jobs
130,000 workers in Bali may lose jobs
The Jakarta Post, Kuta, Bali
Minister of Manpower and Transmigration Jacob Nuwawea said
here on Sunday the Bali bombings could cost about 130,000 workers
on the island their jobs if tourists continue to shun Bali.
The government also pledged Rp 480 billion (about US$52.14
million) to help locals rebuild the area of Kuta where a powerful
bomb killed nearly 200 people on Oct. 12.
In the aftermath of the blast, the Balinese are facing
dwindling tourist arrivals -- the backbone of the island's
economy.
A group of ministers visited Bali over the weekend to assess
the physical and economic damage of the terror attack and to seek
ways to reduce the impact of the bombings.
Jacob said about 130,000 people on the island working in
hotels, travel agencies and other tourist-related businesses were
at risk of losing their jobs.
At least half of the 130,000 could be laid off within a month
if the gloom hanging over the tourist industry remained, he said.
"That number will be much higher if we include workers in the
informal sector," Jacob said during a press conference.
To prevent mass layoffs, workers are considering waiving a 25
percent regional wage increase slated to take effect next year.
As yet, employers have no plans to reduce staff but are
instead focused on restoring Bali's image, said Panudiana Kuhn,
an executive with the Bali Employers Association.
He said hotel occupancy rates had fallen to between 30 percent
and 40 percent from 80 percent to 85 percent before the bombings,
while asserting that deferring the wage hike could save jobs.
Jacob said employers must do whatever it takes to maintain
their businesses, but added that job cuts should be the last
resort.
Minister of Resettlement and Regional Infrastructure Soenarno
said that of the Rp 480 billion earmarked for the reconstruction
of the bomb site, owners of destroyed and damaged houses would
each receive Rp 5 million.
At least 17 houses plus a dozen vehicles were damaged in the
bombings. About Rp 30 billion of the money will go toward
installing new hydrants, while the rest will be spent on public
facilities such as roads.