Industry Minister Assures Workers Of No Layoffs Until 2014

INDUSTRY MINISTER ASSURES WORKERS OF NO LAYOFFS UNTIL 2014 Kategori: Economic News (ECO) 16:23 Rabu, 28 Agustus 2013 Jakarta, Aug 28 (Antara) - Industry minister MS Hidayat has announced that workers will not be laid off at least until the end of 2014. "We have resolved that there will be no layoffs of workers until the end of next year," the minister said at a press conference, while presenting his office`s policies to stimulate economic growth, here on Wednesday. As part of efforts to prevent layoffs from happening, Hidayat continued, the Industry ministry will offer a short-term incentive, in the form of a 25 percent cut in income tax, to non-export oriented companies and a 50 percent income-tax waiver to export-oriented companies for the taxation period of August. The minister stated that his office would also extend the income tax payment period�in line with Article 29 of 2013�to until three months after the tax payment date, as well as remove administrative sanctions previously imposed for tax payment delays. Hidayat said his office would first prepare a list of industrial companies and then issue a ministerial regulation to all those who could benefit from the new regulation. He said he would also relax limitations on the use of facilities at bonded zones and allow companies there to sell up to half of their products to the domestic market. As for long-term measures to boost economic growth, Hidayat revealed that he would offer more tax incentives and simplify related procedures to encourage investment in all industries. He noted that the income tax incentive would be offered to five labor-intensive industrial sectors: textile, garment, footwear, furniture, and children`s toys. According to Hidayat, more than 1,000 companies are eligible for the incentive. He expressed hope that the incentives would help companies maintain their cash flows until June 2014 or the end of the tax-filing period. "They will have sufficient cash flow until June. We will also provide additional provisions to export-oriented companies," the minister stated. However, Hidayat said the ministry had yet to decide on sanctions for those companies that fail to fulfill their commitment, adding that a supervisory body would be established to ensure that the companies do not lay off workers. "This is an emergency step, so sanctions have not yet been formulated," he explained. However, Hidayat continued, he would ask the companies concerned to sign a pledge to not lay off their workers. "This will be a lesson. We know that a lot of regulations are limiting us. We hope conditions will return to normal in the future," he added.