Rubber Factory In Bengkulu Goes Bankrupt, Prepares IDR 7 Billion For Severance Pay For 201 Employees

The rubber factory PT Batanghari Bengkulu Pratama (BBP) in Central Bengkulu Regency. ANTARA/Anggi Mayasari

BENGKULU - The rubber factory of PT Batanghari Bengkulu Pratama (BBP) located in Ujung Karang Village, Karang Tinggi District, Central Bengkulu Regency has prepared funds of IDR 7 billion to pay severance pay for 201 employees.

The severance payment was made because the company had declared bankruptcy so it had to carry out gradual Termination of Employment (PHK).

"Recently, the company's condition is very apprehensive. In fact, various solutions to increase the company's income continue to be carried out, up to the reduction of employees. But it also does not make the company survive", said the Head of Personnel at PT BBP Haulan Ismadi in Bengkulu, reported by ANTARA, Thursday, December 22.

PT BBP's crisis condition was caused by the company experiencing a reduction in the number of sales contracts for processed rubber products, which resulted in losses for the company in the last four years.

To maintain and increase production, his party has reduced operational costs by laying off 45 employees in November 2022.

However, this did not help, so today his party stopped buying rubber raw materials from the farmer level.

He explained layoffs will be carried out in stages until the deadline for the delivery of processed rubber contracts in January 2023 is settled and at the initial stage it is likely to start with employees in the raw materials department, continuing with employees in other sections. Only after the contract for delivery of processed products runs out in January, all employees have certainly been laid off", he said.

However, he will continue to fight for and ensure that all workers' rights will be fully fulfilled.