West Java textile producers eye Central Java

West Java textile producers eye Central Java

BANDUNG (JP): The West Java Textile Association (API)
reiterated on Tuesday that some of its members are planning to
relocate their factories to Central Java following what they
perceive as continuous financial burden.

The secretary of API, Ade Sudrajat told The Jakarta Post here
that this was not a new issue. "Actually seven garment factories
had moved to Central Java and Bali early this year. They
considered the Central Java regional regulations more conducive
to their business."

"More than 4,000 workers were dismissed at that time," he
said, adding that in the near future four or five more factories
would move to Central Java and at least 500 workers would have to
be dismissed.

API members are owners of textile and textile-product
factories, including garment factories.

"Just imagine the minimum wage in Central Java is between Rp
220,000 and Rp 250,000 per month while a worker in West Java
would be getting Rp 344,000 per month," he said referring to the
latest manpower minister's decree dated Sept. 29, 2000 on the
increase in West Java's minimum wages.

The decree will take effect from Nov. 1, 2000.

Sudrajat's statements underlined the chairman of API Lili
Asjudiredja's complaint that the textile and textile-product
producers were already burdened by the increase in electricity
tariffs.

The state-owned electricity company PT PLN increased the
electricity tariffs on April 1. The rate was increased by an
average of 29.43 percent but industrial users got a hike of
between 53 percent and 76 percent.

Lili said on Monday that mass dismissal would be unavoidable
if the factories moved to Central Java.

He did not reveal the total cost of relocating the textile
factories to Central Java.

He said preliminary studies had been made and they were
coordinating with the Central Java chapter of API.

"Surveys indicate that the areas around Pekalongan, Solo
(Surakarta) and Yogyakarta are good places for textile
factories," Lili said.

He said that politically, Central Java was better than West
Java. "There are fewer workers' demonstrations in Central Java.
Therefore, we expect to be able to do our business more
peacefully there."

API has 600 members, 200 of whom own large factories. The
textile and textile-product subsector employs some 1.8 million
workers in the province.

Union

West Java's chapter of the Federation of All Indonesian
Workers Union (FSPSI) regretted the decision taken by some API
members.

"They should not have moved merely due to the workers' wage
hike. The step will only cause layoffs and dismissal," the
secretary of West Java FSPSI, H. Dardju said.

"The businessmen should appreciate the workers' efforts in
increasing the factories' revenues. This is unfair treatment to
the workers."

"The businessmen cry aloud when they suffer small losses but
keep silent when they enjoy big profits. The workers should be
regarded as the businessmen's partners, therefore, if the
businessmen cannot afford to pay the workers, just sit together
and talk about it, we (workers) will understand," Dardju said.

On Monday, the head of the economic office for the West Java
province, said that the province's revenues would consequently
drop if API members moved their businesses.

Mustafa said that between 60 percent and 70 percent of the
total industries in the province were textile and textile-product
industries. "The number of unemployed will also increase."
(25/sur)