Kimia Farma Wants To Close 5 Factories, Employees Will Be Laid Off?

Kimia Farma (Photo: Antara)

JAKARTA - PT Kimia Farma (Persero) Tbk (KAEF) plans to close five of its 10 factories. Along with the plan, the wave of layoffs (PHK) haunts the company's employees.

The Special Staff of the Minister of SOEs, Arya Sinulingga, explained that factory closures must be carried out if the factory utilization level does not meet the target.

"Indeed, the capacity is not this, under capacity, like you have a car rental. There are 10 car rentals, then only 5, left or want to sell? Dismissed or not? Because if he continues to run, will Operations keep going," he said when met at Perum Perhutani Office, Jakarta, Monday, July 15.

Arya said that if the factory is closed, inevitably termination of employment for employees must be carried out.

"Like it or not, they have to do it, right, because the factory is closed," said Arya.

Even so, Arya asked PT Kimia Farma (Persero) Tbk (KAEF) to provide the best solution to employees affected by layoffs.

"Our directives if done like that must be a win-win solution between Kimia Farma and employees," he said.

Previously, the Director of Production and Supply Chain Kimia Farma, Hadi Kardoko, explained that the factory closure or rationalization of production facilities was carried out for business reorientation, financial restructuring, and efficiency.

Hadi said that with the closure of this factory, he hoped to reduce operational costs, so that it could increase the efficiency of the company.

"Currently, our utilization is less than 40 percent, and later this arrangement will increase our utilization, of course, it will be above 40 percent and there will be a better efficiency process," said Hadi.