5,585 workers fired in Bogor

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