TEMPO.CO, Jakarta - Eight companies in three districts in Central Java Province are threatened with bankruptcy due to the impact of the Covid-19 virus outbreak.

"Based on the results of our monitoring, companies that are threatened with bankruptcy are engaged in timber and retread tires in Batang, Kendal and Demak districts," said the head of Central Java Province Manpower and Transmigration Office, Sakina Roseliasari at Semarang Sunday, March 08, 2020.

"They have many reasons to close their company, one of them is their production process stalled because the raw material comes from China and they cut down the transaction then it disturbs the shipping process," Sakina said.

Another reason, she said, the owner of the companies went to China at Chinese New Year day and they can not go back to Indonesia because of the closed flight due to the outbreak.

"As a result, the companies reduced their day-to-day workers and others have laid off some workers," he said.

Central Java DPRD Commission E member Ahmad Ridwan encouraged the Central Java Provincial Government to prepare anticipatory measures so that companies could continue to operate amid the shock of the Covid-19 outbreak.

"If we can not anticipate that, the impact will be that companies and employees will also flock to the government," he said.

Antara | Galuh Kurnia Ramadhani (Intern Translator)