Industry survey shows grave impact of crisis

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)