Rupiah Collapse Leads to Massive Layoffs in Banten

TEMPO.CO, Jakarta - Around 7,000 workers in Banten province were fired from their jobs. Hudaya Latuconsina, the province's head of department of labor and transmigration, said the layoffs are due to the weakening economy and the low exchange rate against the US dollar that had affected production sustainability in a number of companies.

Hudaya said that the 7,000 workers are from four companies in the districts of Serang and Tangerang.

"Three companies are in Serang District and one company is in the district of Tangerang," Hudaya said on Monday, August 31.

Hudaya said the biggest layoffs occurred in PT Cangluh Indonesia, a shoe factory, with 2,500 employees terminated from their jobs.

Riden Hatam Azis, chairman of the Indonesian Trade Union Confederation (KSPI), said that workers have become victims of the government's mistake in managing the domestic economy.

"The weakening of the economy should not have to have caused layoffs, especially since it is not the workers' fault but the government's," he said.

According to Riden, the layoffs occurred because the state failed to provide solutions to the present economic downturn and the rupiah correction. "Let's not let this situation be taken advantage by bad companies used to conduct unilateral sacking and replace permanent employees with contract workers," he said.

WASI'UL ULUM