Tire recycling business creates jobs in Banyumas

Agus Maryono and Mamock Ng, The Jakarta Post, Purwokerto

A lack of fertile farmland and a rise in unemployment have spurred small-scale entrepreneurs in Banyumas to turn to recycling used tires to weather the economic storm.

Inspired by 53-year-old Sudiro, a father of five children, many residents in the regency sold their farms several years ago and embarked on an endeavor to manufacture products from used tires.

With a starting capital of less than Rp 1 million, Sudiro now employs about 70 workers in Kebanaran village in the Karanglewas district, to make everyday items, such as sandals, chairs, vases, toys and even wastebaskets out of the used tires.

He said that he honed his craftsman skills by learning from his late father, Syahroni, back in the 1970s.

"My father spearheaded this business for almost 20 years and I was one of the workers. We were trained to manufacture household goods from used car tires. Over the past few years, I tried reviving the business because it has been more difficult to make ends meet during the economic crisis.

"From one used tire, which we can buy for Rp 1,000, we can make four wastebaskets, which are then sold for Rp 10,000 each.

Jahidin, 57, has 40 workers running his business and he sends his products not only to markets in Java but also in Sumatra, South Sulawesi and Kalimantan.

"We sell sandals for between Rp 10,000 and Rp 15,000 a pair," he said, adding that his workers could make 20 pairs of sandals in a day.

He said one worker was able to make five vases a day from only one tire, with each vase selling for Rp 10,000.

His business also makes dinette sets, which go for Rp 400,000 for a table and four chairs.

Riyanto, another entrepreneur, called on the local administration and the banks to provide financial assistance and political support to accelerate the small-scale industry in helping empower locals and to further create job opportunities in the regency.

"We won't overburden the local administration, but it should throw its support behind fledgling businesses and encourage the banks to offer credit to small entrepreneurs, because these businesses help the environment, create new jobs and stimulate the economy by contributing to the local administration in the form of taxes," he said.

Riyanto said that he had about 30 workers, but their job stability and pay were dependent on incoming orders. "I could not keep them employed if I paid them the minimum wage because my business is running short of the capital that is needed to improve our product," he said.

Many businessmen in the regency pay their workers between Rp 5,000 and Rp 7,000 a day because meals are also provided. "We could not pay them the regional minimum wage in the province. We didn't ask the workers to join our business and they receive a low pay because of the lack of jobs in government offices and the private sector," said Riyanto.

Jahidin said he paid his workers Rp 75 to assemble a pair of sandals, in which they glue the parts that he and his sons had made.

A worker, Kambali, said he enjoyed his job because he was paid in accordance to the volume of work they received.

"What is most important is that the quality of our work is guaranteed," he said.