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Batam Companies Lose US$20 Million During Labor Strike  
TEMPO/Rumbadi Dalle
Wednesday, 30 October, 2013 | 12:26 WIB
Batam Companies Lose US$20 Million During Labor Strike  

TEMPO.CO, Batam - Riau Chamber of Commerce and Industry Chief Soraya Djayakusuma complained about the labor's strike in the last two days since it caused companies to suffer a loss for US$20 million or around Rp222 billion.

The loss is caused by the stopped activity, ship mooring payment in ports due to the delayed loading and unloading, and customers' demands caused by the late shipment to the ordering country. "Labors need to think about this," Soraya said earlier today. If companies keep suffering a loss, they will go bankrupt which results in termination of employment which then increases unemployment in Batam.

Soraya gave an example; foreign investors from Ciba Vision America has closed its company since they fear of anarchy. They have dismissed all workers. The company has produced 70 percent of lens worldwide and has been employing more than 1,000 workers in Batam Muka Kuning Industrial region.

Labor's strike coordinator, Suprapto said the strike will continue until November 1. "The peak is tomorrow, Thursday," Suprapto told Tempo.

Even though labors have submitted their demand to Batam Manpower Agency, the strike will continue until the government agrees to increase wage for 50 percent in 2014, implement health insurance and eliminate outsourcing system.

Protesters even planned to close public facility such as Hang Nadim Airport, sea ports in Batam and Batam industrial regions. The labors apologized in advance to the public regarding this. "We will close them for two days," they told Tempo.

Labors from Batam Center industrial area, Muka Kuning, Sekupang and Tanjung Uncang will join to close public facility and industrial areas.

Based on Batam Manpower Agency, there are 5,582 companies and 383,436 labors in Batam. The companies consist of joint venture for 56 companies, 789 domestic investor companies, 773 foreign investors companies, 2,620 national companies and 1,344 other companies.