Hundreds laid off in Maluku

AMBON, Maluku: Hundreds of workers have been laid off by construction companies due to the soaring price of building materials, an executive said Saturday.

Soebeno, secretary of the Provincial Indonesian Builder's Association (Gapensi) said that the sharp fall in the rupiah against the US dollar had caused building materials to increase in price by between 300 percent and 400 percent.

"We are reluctant to lay off the workers since it adds to unemployment," Soebeno said.

Most of the employees laid off were temporary workers. Construction companies commonly employ between 20 and 45 people on a permanent basis, but recruit large numbers of staff on a casual basis.

Soebeno said his association had complained to the Ministry of Public Works about the situation and hoped that the ministry would revise funding for their projects.

"It's impossible if we are forced to continue our projects under the old figures. The projects would not be completed on time," he was quoted by Antara as saying. (jun)