INDUSTRY.co.id - Chairman of DPP Apindo West Java Dedy Wijaya assessed the departure of several companies in West Java, especially in Karawang the impact of minimum wage increase district (UMK) 2017 which reached 8.5 percent or the amount reached Rp 3.6 million. He also claimed that in the future, many companies will relocate their factories in central, eastern and western parts of East Java.
"The impact of this MSE increase is quite high. Many companies are not strong paying employees," said Deddy in the seminar 'Jababeka Tenant Gathering' at the President Executive Club on Thursday (9/2/2017).
He said, the choice of corporate relocation be an alternative for companies to survive and develop. Based on reports that go to Apindo many companies are choosing to leave Karawang. They are targeting other areas with lower UMKs. Like Majalengka, Brebes and Jepara.
"Relocation such as in the area of Industrial Park Kendal be the right choice, in addition to the low MSEs range from Rp 1.5 million to Rp 1.7 million. Currently, infrastructure development such as toll roads and trains is not a problem to relocate the plant," he explained.
He also asked the company to negotiate with the union either existing or not. Because he thinks companies need the comfort of trying and workers. "It even confused that the demo is often happening in areas with higher UMK than other areas," he explained.
As information today, there are eight companies that 'Oleng' the impact of the increase in MSEs. At least 6,021 employees were laid off and retired early.
The eight companies that have high impact of UMK include PT Bhineka Karya Manunggal, PT Metro Kinki Metal, PT Hansae Karawang Indonesia, PT Beesco, PT Royal Industries Indonesia, PT Kido Jaya, PT Dream Sentosa Indonesia and PT Cheong Lim. The eight companies are engaged in bags, leather and shoes (TKS).
