Wed, 25 May 1994

Relocation of batik factories creates more jobs: Official

JAKARTA (JP): The South Jakarta Mayor's office is denying newspaper reports that the relocation of batik factories from Setiabudi district, South Jakarta, to areas outside the city has created unemployment problems.

"That's not true. Instead, it has created more jobs," M. Yanis, a spokesman for the mayor's office, told The Jakarta Post.

Yanis said Tuesday that relocating the factories has created jobs since most of the factories have expanded their business.

"Many of the owners have expanded their businesses in the new locations. One, for example, who used to own a 500-square-meter factory in Setiabudi, is now building a factory of 2,000 square meters. Consequently, if before he had only 15 workers, now he needs at least 30," Yanis said.

Most batik factory owners in Setiabudi have relocated to locations outside the city such as Jabeka Cikarang and Lippo City in Bekasi, Kerawang and Balaraja in Tangerang and Parung Panjang in Bogor.

He acknowledged, however, that not all batik workers from Setiabudi district were willing to move to new locations outside Jakarta partly because they now must spend more money for transportation because the factories are located far away from their homes.

Despite its positive effects, the expansion has also caused an unexpected delay in relocating a number of factories, which in turn has caused the owners to temporarily lay off their workers.

A number of workers at factories along the Gang Sidik area, Setiabudi district, for example, fell victim to the relocation.

"I and my friends will return to our hometowns in Central and East Java pending the construction of the new factories," a worker related.

Relocating the factories from Setiabudi, located in the heart of the city, is based on the 1985-2005 municipal spatial plan. Under the master plan, the area is slated for residences and office complexes.

Responsibility

Batik factories are being targeted first because the mayoralty believes their waste is responsible for polluting the Krukut River, which runs through the capital.

Yanis said formerly 7,000 people worked at 180 factories in Setiabudi district. Of this number, some 3,000 remain employed at the three largest factories still operating.

The three factories; PT Windueka, PT ADRM and PT Batik Afri, received a a special permit allowing them to remain open until 1995, while the others were closed down by the city administration.

Rudjito, chief of the South Jakarta Industry office, said the three were granted the extra year because a feasibility study showed it was difficult for them to move their machinery within a year. (has/11)