Having Just Visited Two Companies, Bahlil Dare To Call No Layoffs In Labor-Intensive Industries

Head of BKPM, Bahlil Lahadalia. (Irfan Meidianto / VOI)

JAKARTA - Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that labor-intensive industries did not terminate employment (PHK) amid the COVID-19 pandemic. Bahlil emphasized that after he reviewed the operations of two companies, one in Subang and one in Karawang, West Java last week.

"Please keep producing, but the health protocol is strictly maintained. We have to deal with it so that health is safe and business continues. There should be no layoffs," he said as quoted by Antara, Monday, July 27.

Bahlil also invited companies to jointly find solutions if they encountered problems. What is clear, the Indonesian government will try hard to prevent layoffs.

"If the company is having trouble operating, let's talk to BKPM. We'll find a solution. We'll talk with the central, regional, provincial and district DPMPTSP. Anyway, no layoffs are allowed," he said.

During a visit to PT Taekwang Industrial Indonesia (TKII) in Subang, West Java, Bahlil appreciated the South Korean company for continuing to employ its employees during COVID-19.

TKII employs 25,000 Indonesian workers, all of whom were still working during the COVID-19 pandemic. The footwear industry company was founded on November 9, 2011 and has an investment value of 160 million US dollars.

Currently, TKII is able to produce about two million pairs of shoes per month, 100 percent of which is for export. The income from selling shoes can currently reach 350 million US dollars per year.

TKII also plans to increase its investment by 100 million US dollars and double its shoe production to four million pairs of shoes per month and increase employment to 40 thousand people.

While during his visit to the PT Asahimas Flat Glass Tbk (Asahimas) factory in Karawang, West Java, Bahlil appreciated the consistency of Japanese companies that continued to be productive during the COVID-19 pandemic.

Ongoing investment activities assist Indonesia in its National Economic Recovery (PEN).

"In the direction of the President in the era of COVID-19, BKPM not only serves new investment, but also existing investments that will expand. Therefore, BKPM's aim here is to follow up on obstacles in the process of expanding Asahimas investment," said Bahlil. .

Asahimas is recorded in the OSS (Online Single Submission) licensing system having an investment value of IDR 3.7 trillion (around US $ 254 million) and employs 3,000 domestic workers.

The Japanese company has long been known as the world's leading glass producer. It is even able to meet the supply of 43 percent of the national glass needs.

Asahimas said that they had significantly increased their installed production capacity to 630 thousand tons for flat glass, 5.8 million square meters for safety glass and 2.4 million square meters for mirrors.

This capacity shows the existence of Asahimas as the largest glass producer in Indonesia and in Southeast Asia.

Vice President Director of PT Asahimas Flat Glass Tbk Emanuel David Satria Soetedja appreciated BKPM's support and services to companies that are getting better and more responsive.

"We hope the government will continue to support Asahimas as a long-time player in the glass producer and in the process of expanding this business," said Emanuel.