Sunday, 11 October 2015


The Indonesian Chamber of Commerce (KADIN) had asked the Government and all stakeholders of national economy to sit together to seek for way-out from the adverse economic condition today which suppressed the real sector. Chairman of KADIN Suryo Bambang Sulisto stated in Jakarta on Tuesday (30/6) admitted he was most anxious about the condition of the real sector today. If the real sector was injured there could be mass dismissal of workers or even closing of companies.

He disclosed that surely companies diod not wish to dismiss their employees; so he urged the Government to review some policies such as high tax imposition on certain sectors and increase of electricity tariff. “We must strive hard to prevent dismissals.”

Economic slowdown had forced some companies to plan to dismiss their workers after Idul Fitri. As known, Indonesia’s economic growth through Q 1/2015 was only 4.71%, slower than that of last year at 5.14%.

Suryo that many companies still held piles of goods at the warehouse. On the other hand companies still had to pay salaries as workers were still active in production. Somehow the company did not wish to instantly fire workers but tried to cut working hours among others by starting holiday sooner at H-10 Idul Fitri an this was at company’s initiative.

Meanwhile the Ministry of Labor denied rumors that some companies were doing mass dismissal. The Director of Industrial Relationship of the Ministry of Labor Sahat Sinurat said that the rumors of workers dismissal in Tangerang and some cities in West Java were not cases of dismissals. “The workers still bear the status of employees but they had to stay at home, it happened in convection and footwear sector” Sahat said.

Sahat explained that workers being domesticated was different from workers being fired. They still receive basic salary but did not get fringe benefits. They were being domesticated because of over production of goods, workers had to stop working only temporarily.

Sahat reported that he had no received any report of workers mass dismissals. Before dismissing workers it was mandatory for workers to the local Labor Dept, who would report to the Ministry of Labor. Mass dismissals could only be agreed upon if dismissal was agreed upon by both parties, i.e. employer and employees.

Sahat underscored that no companies had reported to the Ministry do far. He said that by the time AEC was in effect this year end, workers of the Asean states were challenged to grab positions by certification. In the future it would be hard for workers to find jobs without skill, competence and competitiveness. (SS)

Business News - July 3, 2015

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