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.