VIVAnews - The number of layoffs in Jakarta reaches more than 40,000 people according to the data of the Indonesian Employer Association (Apindo) in Jakarta per 28 February 2009.
It includes automotive sector (10,000 people), construction sector (15,000 people), electronic sector (5,000 people), and the remaining number was concerned with supermarket or textile sector.
"Layoffs percentage in automotive and electronic sectors is quite high due to considerable increase in sectoral wages," said Chairperson of Apindo of Jakarta, Soeprayitno, on Wednesday, March 11.
The sectoral wages is the provincial minimum wages (UMP) including certain additional percentage, which will depend on the sector. "Automotive [sector] has an additional of 15 percent; electronics, 11.5 percent. Therefore, salary's wages will increase by 25 percent and 21.5 percent because the UMP rises by 10 percent," he explained.
"Apindo has already talked to the [Jakarta] administration if the said UMP is still applied then there will be massive layoffs. But they didn't listen," said Head of Apindo Social Security and Payment Division Hariyadi B Sukamdani. The reason for this is that the automotive industry's productivity has decreased by 40 percent, while electronic sector plunged by 30 percent.
Soeprayitno added that the number of layoffs reported to the government is only around 15,000 people or half of the recorded data.
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Translated by: Ariyantri E. Tarman
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