Bahlil Opens Up The Cause Of Layoffs In The Textile Industry: There Is A Factory Relocation To An Old Production Machine

Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia. (Photo: Mery Handayani/VOI)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia confirmed the news of layoffs (PHK) in the textile industry. Some, he said, occurred in West Java.

Bahlil said the layoffs occurred because investors decided to relocate their factories to areas outside West Java.

However, he continued, layoffs were also found because the factory was no longer operating.

I have to tell you the truth about the layoffs in several places. In particular, in West Java, there are two layoffs. One is the relocation of factories from West Java to other areas in the Java area where it was found, there are also factories that are closed," he said at a press conference, at the Ministry of Investment office, Jakarta, Monday, July 29.

According to Bahlil, there are two problems that cause a wave of layoffs in the textile industry to occur quite large. First, he said, because the equipment used is old.

"There are two problems. First, the engine is old, the second is the economic cost is already high compared to other countries," he explained.

Bahlil assessed that this condition must be found a middle way. On the one hand, the rights of workers must be fulfilled properly.

Meanwhile, on the other hand, workers must also pay attention to the sustainability of the company with their work productivity.

"If this is closed, we will all lose. Job opportunities are closed, the industry is not running, state income is reduced," he said.

"But don't be sad because someone is leaving. Yesterday's example we inaugurated a shoe factory in the Batang industrial area in Central Java which created more than 2,000 jobs," he continued.