Factory Owners Threaten to Move Away From Jakarta
Indonesian workers shout slogans during a protest as part of their nationwide strike at an industrial area in Jakarta on Oct. 31, 2013. (EPA Photo)
Factory owners at Kawasan Berikat Nasional, an industrial zone community based in Cakung-Cilincing, North Jakarta, have threatened to relocate their businesses away from Jakarta on the grounds that it is no longer conducive to do business in the capital.
"Twenty companies have been shuttered," Bambang Heriyanto, the head of the KBN Human Resources Development Club, said as quoted by the city's official news site BeritaJakarta.com.
"Besides high operational costs, the other reason [we want to move] is security; yesterday, almost all companies stopped production, and up until now have not resumed operations. If KBN cannot guarantee security, we will leave from here."
Nationwide labor strikes by workers demanding higher wages on Thursday and Friday caused disturbances for many of the country's businesses. Workers in Jakarta demanded that the government increase the minimum wage by 50 percent to Rp 3.7 million ($325). However, the Jakarta government only raised it to Rp 2.44 million ($214).
Besides causing some factories and firms to suspend operations, many striking laborers forced other employees who remained on the job to join the strike while sometimes resorting to violence.
Bambang said that KBN counts 71 factories in its industrial zone, with the majority of them being garment factories.
"On average, each company here produces 8,000 to 12,000 products per day," he said as quoted by Tribunnews.com. "If each piece is sold at $2 USD, and that's multiplied by 71 companies… that's billions [of rupiah] in losses."
Bambang said that workers' rejection of the capital's new minimum wage have also made factory owners uneasy.
Meanwhile, Hartono, a spokesman for KBN Cakung-Cilincing, said that he would take measures to ensure the welfare of the factory owners.
"The comfort of the entrepreneurs in KBN will be our focus," Hartono said.
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