Run by electronics giant Sony, PT Sony Chemicals, which produces chemicals for electronic goods, will close its plant in Batam, Riau Islands, as of August 31 because of falling global demand.
As a result of the closure, the company would lay off some 350 workers, Batam manpower agency chief Rudy Shakyakirti said Wednesday.
"Sony’s top management executives have come to us to process the severance payment for workers. As of August 31, the Sony plant will be closed," Rudy told The Jakarta Post.
So far there had been no protests from the workers who had apparently accepted the offer Sony made them, he said.
According to official data, PT Sony Chemicals began investing in Batam in 1996, with a total investment of US$4 million.
The global financial crisis had started to affect Batam (not far from Singapore) in October last year, and had forced a number of companies to scale down or even close their operations, Rudy said.
Since October, four companies had reported to the manpower agency they would halt their operations in Batam.
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