Tens of thousands may lose jobs in Batam

JAKARTA (JP): Tens of thousands of workers on Batam island may eventually lose their jobs because of continuing low demand for products from the island.

Incoming orders for products from the island, especially electronics, have decreased by up to 70 percent, according to the general manager of Batamindo Industrial Estate, John Sulistiawan.

If this slowdown in orders continues, this will endanger production continuity of a number of plants on the island and eventually will result in massive unemployment, he said.

In fact, a number of electronics firms have closed down and dismissed their workers, he said.

Abidin Hasibuan, director of Batam-based PT Satu Nusa Persada, supported John Sulistiawan's claim and said that his company had also cut production because of slowing demand.

"In my company there is a 20-percent production drop but no workers have been laid-off as yet," Abidin was quoted by Antara news agency as saying.

John and Abidin also expressed their concern over the reinstallment of ministerial decree No. 150/Men/2000 that stipulates severance payment for fired employees.

John said foreign investors on Batam island were about 90 and most had experienced a slump in their orders of between 20 and 70 percent.

They urged the Batam regional office of the Indonesian Chamber of Commerce (Kadin Batam) to respond to grievances voiced by Batam investors.

"When workers feel they are being marginalized by their management, both SPSI and SBSI come to their rescue but when investors have problems Kadin Batam has been mute," John said, referring to the two prominent labor unions, the All-Indonesia Workers Union and the Indonesian Prosperity Trade Union respectively.

Meanwhile, chairman of Kadin Batam, Muzakiriyanto said he was willing to address investors' grievances.

"We pledge to help the investors out of their problems. We will have to get our house in order before the free market era that starts in 2002 or 2003," he told Antara.

The low demand for Batam products has been attributed to the economic slowdown in the United States and Japan, two countries which import most of Batam's electronics products.

Therefore, Batam's industries are now counting on Indonesia's domestic economy, which is expected to grow significantly in the coming years with the induction of the new government.

"Unless the national economy improves, dozens of foreign investors will leave the island by May 2002," John said. (hbk)