Sat, 13 Sep 2003

48 factories suspend operations

SURABAYA, East Java: Amid the prolonged drought in East Java, 48 fertilizer factories have suspended their operations, as farmers have been unable to work their land and are waiting for the dry season to end.

Chairman of the Association of small- and medium-scale fertilizer producers Noer Soetjipto said on Friday in Surabaya that the figure was expected to increase in the next two months, as the rainy season was forecast to arrive in early December.

"Many factories have stored products in their warehouses, waiting for the dry season to end, at which time the farmers are expected to resume their activities," he said, saying the companies had laid off some of their workers to minimize their operational cost.

He said the lay-off was a must, as otherwise, the companies owner would pay around Rp 108 million per month for their employees' salaries

Local farmers have being facing a massive crop failure, since tens of thousands of hectares of rice plants have died from the drought. -- JP