http://www.thejakartaglobe.com/business/10-companies-to-shut-down-their-production-in-indonesia/554343

10 Companies to Shut Down Their Production in Indonesia
Jakarta Globe | November 05, 2012

 Protestors confront company security personnel and new employees, right, at 
the Panarub Dwikarya factory, outside the main gate in Tangerang, Banten in 
October. More than 1,300 people clashed with security guards at the Indonesian 
shoe factory, which supplies sportswear giants Adidas and Mizuno, months after 
they were sacked for striking over better pay. (AFP Photo/Bima Sakti) 



Ten big companies will shut down their production in Indonesia as a result of 
unfavorable employment policies, according to Sarman Simanjorang, the deputy 
chairman of the Jakarta chapter of the Indonesian Chamber of Commerce and 
Industry.

"Indonesia is less competitive than Vietnam and Cambodia. Both countries 
provide [better] industrial facilities and lower wages for workers by 10 
percent," Sarman told Temp.co on Monday, adding that the current national 
industrial sector was in trouble.

Sarman refused to reveal any of the 10 names as the companies have planned to 
officially make an announcement at the office of the Indonesian Employers 
Association (Apindo) on Wednesday. 

Sarman, who said that these companies would relocate their factories to other 
countries, added that the impact could increase unemployment figures. 

Hariyadi B. Sukamdani, the deputy chairman of the Indonesian Chamber of 
Commerce and Industry (Kadin), said other companies likely to close included 
Samsung, Panarub, Shukakhu and Patria. 

Hariyadi said that the investment and industrial climate was no longer 
conducive in Indonesia as the government was taking the side of employers 
related to worker's demands for higher wages.


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