Reject The Industrial Relocation Plan To Low-Wage Regions, Minister Of Industry Agus: There Is Already A RJPMN On Policy Direction For Industrial Estates

Illustration (Photo: Doc. Ministry of Finance)

The government through the Ministry of Industry firmly rejects the plan of business actors who want to relocate production centers from one area to another which are considered to have a low wage base.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed that this has the potential to interfere with the continuity of industrial programs that have been set by the government.

"Regarding the relocation of the industry, actually our policy (the government) has clearly objected," he said when answering reporters' questions quoted on Tuesday, November 8.

In addition, the Minister of Industry also said that his party continues to direct the development of the manufacturing sector in the established reference.

"In our National Medium-Term Development Plan (RPJMN) we have set a policy direction that almost 80 percent of industrial areas will be built outside Java," he said.

The Minister of Industry emphasized that the direction of development that had been mandated by the RPJMN must be fulfilled in order to achieve the ideals of welfare for all Indonesian people.

"It is the government's effort to equalize," he said.

Previously, news about industrial relocation was conveyed by the Minister of Finance (Menkeu) Sri Mulyani last weekend. According to the Minister of Finance, his party found indications of migration in Java to other areas that were considered more competitive in terms of workers' costs.

"We are currently working with other ministries and institutions to examine whether there is a relocation phenomenon from factories. Because, if we look at Java with infrastructure that is getting better and more connected, there is a phenomenon of these factories looking for a conducive location in terms of wages (labor)," he said.

The Minister of Finance added that if this happens, it is believed that the situation of termination of employment (PHK) cannot be avoided.

"(If the relocation occurs) Then there will be layoffs in one area but there will probably be job opportunities elsewhere," he said.

"For that we will continue to research the regions and sectors (types) of industry because later something will be different," concluded Sri Mulyani.