Industry survey shows grave impact of crisis

JAKARTA (JP): More than one-third of companies operating in the electronics, machinery, chemical and metal-based industries have temporarily closed their operations as a result of the country's worst ever economic crisis, a survey has revealed.

The survey, undertaken by the directorate general of metal, machinery, electronics and miscellaneous industries at the Ministry of Industry and Trade, found that of 163 companies interviewed between July and October this year, 34.4 percent had been forced to temporarily stop operating as a result of the monetary crisis.

The survey, the results of which were released at a seminar on industrial and mining investment here on Thursday, shows that 30.7 percent of the companies interviewed have reduced the number of work days and another 31.3 percent have cut the number of shifts in response to the monetary crisis battering the country.

A total of 28.3 percent of the respondents also said that they have laid-off workers under retrenchment measures to cope with the crisis.

Workers to have lost their jobs consist of elementary, junior and senior high school graduates (62.17 percent), technicians (9.22 percent), pipe wire operators (4.26 percent) and welding and heat adjuster operators (4.23 percent).

The survey also revealed that 46.9 percent of the respondents have reduced the use of imported raw materials and another 19.6 percent have cut the import of capital goods to survive the crisis.

Furthermore, 56.4 percent of the respondents have cut production, 55.2 percent have cut marketing activities and 17.2 percent have cut exports. (jsk)