U.S. firms close offices, pull workers from Indonesia

U.S. firms close offices, pull workers from Indonesia

BOSTON (Reuters): Widespread rioting in Jakarta prompted at least a dozen major U.S. companies to close their offices or curtail operations in the Indonesian capital Friday and evacuate employees and their families.

American Express Co., Boeing Co., Citicorp, Nike Inc., Mobil Corp., Mattel Inc. and McDonald's Corp., among others, said they would temporarily close their offices in the riot-torn city.

Caterpillar Inc. and others were flying workers and their dependents out of the country.

The State Department said it was making arrangements for a possible evacuation of some of the 11,000 to 12,000 Americans in Indonesia as the death toll from four days of looting and arson rose to at least 165.

"We are very concerned for the welfare of the workers and their families," said Nike spokeswoman Vizhier Mooney. "We are keeping in touch with them on an hourly basis."

Indonesia's cheap wages, abundant resources and long history of political stability made it a natural manufacturing center for everything from sneakers to Barbie dolls.

But the worst riots in 32 years on the chain of islands, sparked by sharp price increases as Indonesia struggles with economic turmoil, forced many U.S. companies to reassess their position, at least for the short run.

Many companies said they would await word from the U.S. Embassy on whether to reopen Monday. Many of Jakarta's roads and ports and the main airport were closed or hard to get to, making business difficult, company officials said.

Mattel, which employs 7,000, including a few hundred expatriates, in Indonesia, closed two big plants that make Barbies and other dolls. More than 100 staff members have been evacuated from the country.

"We also have evacuated all the ethnic Chinese employees because a lot of the violence is being directed toward Chinese," spokesman Sean Fitzgerald said.

Nike closed its plant coordination office in Jakarta and the 50 expatriates there are either working from their homes or leaving Indonesia, the spokeswoman said.

Almost 30 percent of Nike's footwear products are manufactured at 25 Indonesian factories employing 90,000 people, but the plants, located hours from Jakarta, are still operating, Nike's Mooney said.

"We do have contingency plans to transfer production abroad, should there be any disruption," she said.

Reebok International Ltd., which subcontracts with five shoe manufacturing plants about an hour from Jakarta, said it was closely monitoring developments.

Caterpillar said it evacuated 57 workers and their families from Jakarta and moved them to Singapore. It said its Indonesian sales, manufacturing and marketing operations will continue, but said it was monitoring the situation closely.

Citicorp temporarily closed its six offices in Indonesia and arranged to evacuate 30 expatriates and their families.

"The situation is troubling but certainly we have a long-term commitment to the country and we think it has great potential," spokesman Jack Morris said. "We recognize this is a temporary, extraordinary situation we have to deal with."

Atlantic Richfield Co., Bank America Corp. and Bank Boston Corp. also closed offices and evacuated personnel.

Federal Express said it suspended its five flights a week to Jakarta and evacuated about 100 employees, customers and family members on a chartered jet early Friday.

Among oil companies, Mobil pulled 90 people out of Jakarta, Atlantic Richfield said it would evacuate 320 employees and dependents as soon as possible and DuPont Co. unit Conoco also planned to join the exodus.

Otis Elevator Co., a unit of United Technologies Corp., evacuated four expatriate managers from Jakarta to Singapore and Japan on Thursday.

"It's a precaution for sure," Otis spokesman Mark Granato said. "We still think Indonesia will be a growing and viable marketplace."

Consumer products giant Procter and Gamble Co. has also shut down its operations in Jakarta, and is evacuating its "small family" of expatriate managers and their families from the riot- torn capital, a spokeswoman for the company said on Friday.

Procter and Gamble has about 700 employees in the country.