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)