ID :
36598
Fri, 12/19/2008 - 23:21
Auther :
Shortlink :
https://www.oananews.org//node/36598
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1.5 MILLION WORKERS MAY BE LAID OFF IN 2009
Jakarta, Dec 19 (ANTARA) - The Association of Indonesian Businessmen (Apindo) predicts more than 1.5 million workers may be laid off or suspended in 2009 following the global economic downturn leading to the country's low exports and reduction in the manufacturing industries' production capacity.
"We keep trying but the last resort will be laying off or at least suspension. We will cut expenditures and directors have also agreed to cut their salary, if necessary. We are still taking small preventive measures but if we are forced to we will do it and the culmination will be in the middle of next year," Apindo's general chairman, Sofjan Wanandi, said here on Friday.
He said the number was still smaller than during the 1997-1998 economic crisis when around three million workers lost their jobs.
Sofjan said the construction industry would contribute the biggest number of workers to be laid-off in 2009, reaching 10 percent of 1.5 million total workers to be laid off.
The general chairman of the Assiciation of Indonesian Textiles (API), Benny Soetrisno, said potential lay-offs in the industry reached 100,000 in the first semester of 2009. This year around 30,000 workers in the industry already lost their job.
"In terms of income the worst scenario is it may drop 50 percent or optimistically 70 percent from the normal condition," he said.
The general chairman of Aprisindo, Eddy Widjanarko, meanwhile said the footwear industry would predictably fire around 30,000 of its workers. This year it has already laid off around 10,000 of its workers.
"Orders are still pending inauguration of president-elect Obama. So let us wait and see. If there is enough stimulus from president Obama orders may possible rise," he said.
He predicted the industry's revenue would drop 15 to 20 percent next year reaching only US$1.6 billion like in 2007.
In general, Sofjan predicted the country's economy in 2009 would not grow more than four percent as manufacturing industry's productivity will drop around 20 to 30 percent.
To prevent mass lay-offs he urged the government to immediately realize implementation of infrastructural projects to absorb the laid-off workers.
Besides that the government also had to strengthen and help local industries controlling the domestic market by reducing economic cost and minimizing illegal levies.
"The way to do it is by implementing the trade minister's regulation to cut illegal imports. It will be good enough if the illegal imports could be cut by 50 percent," he said.
Sofjan also called on the government to encourage the banking sector not to hesitate to extend credits to the real sector. He said current tight liquidity was the main factor hindering growth of the sector particularly in the current crisis.
Automotive
Although bad conditions were threatening three labor-intensive industrial sectors such as textile and footwear industries automotive and food and beverage industries however they still survived and grew.
The general chairman of the Association of Indonesian Motor Vehicles (AISI), Gunadi Sindhuwinata, said the impact of the global crisis on the automotive industry was not significant enough to cause lay-offs but he admitted that working hours had been cut.
Gunadi predicted auto industry's production capacity would be around only 60 percent next year. Car sales meanwhile are predicted to drop from 600,000 units this year to 400,000 next year. Sales of motorbikes will drop from six million units this year to four million units next year.
"Why the market drops. It is because liquidity is tight. Many sale and purchase transactions are cancelled because financing is not available. The government must pay serious attention to this because 85 percent of auto sales is supported by credits," he said.
The head of regulation affairs of the All-Indonesia Federation of Food and Beverage Producers (Gapmmi), Franky Sibarani, predicted food and beverage industry would grow 1.0 to 1.5 percent in 2008.
"In 2009 we hope more money is circulating in line with the implementation of general elections," he said. He predicted the industry would grow 2.0 to 3.0 percent in the year.
"We expect import limitations to be effective so that we can take over the market of illegal foods and drinks reaching 15 percent of total turnover of Rp350 trillion," he said.
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