5,585 workers fired in Bogor

BOGOR: Nine companies have folded since the start of the year in Bogor, West Java, leading to 5,585 workers losing their jobs, Bogor's manpower agency chief Suherdis announced on Thursday.

He said that seven other companies employing 3,211 workers had also sought leave from the agency to fire their workers as they were facing bankruptcy.

Besides bankruptcy, there were also a number of companies that had relocated their operations from Bogor to neighboring towns, such as Cianjur and Sukabumi, where the minimum wage was much lower than in Bogor.

The minimum wage in Bogor is Rp 576,000, while in Sukabumi it is only Rp 281,000.

According to Suherdis, Bogor has 618 big companies, 742 medium-sized firms, and about 570 small enterprises. "Some 141 of those companies have made thousands of their workers redundant due to the poor business climate.

He asked the minister of manpower to review the regulation on the minimum wage per region as it was causing difficulties for Bogor in attracting new investment.--JP