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Trade union says reports of South Korea factory closures a 'public lie'

Kompas.com - August 20, 2013

Alsadad Rudi, Jakarta Ė The Cross-Factory Labour Forum (FBLP) disputes the claim that four South Korean companies have left Jakarta. The companies that were cited as having closed, PT Hansol 1, PT Hansai 5, PT Winner 3 and PT Olimpic, are still operating in the Nusantara Bonded Zone (KBN) in the Cakung industrial area of East Jakarta.

FBLP chairperson Jumisih said that that deputy chairperson of the Jakarta provincial Indonesian Chamber of Commerce and Industry (Kadin) Sarman Simanjuntak is lying to the public.

"We refute Sarman's statement, who has committed a public lie. The four Korean companies are still operating in Cakung. We hope that a counter report will be published", said Jumisih when speaking with Kompas.com on Tuesday August 20.

Earlier it was reported that four South Korean companies had closed their factories in the KPN in Cakung. The grounds for this were because the companies were unable to pay wages in accordance with the Jakarta minimum provincial wage (UPM) that was set at 2.2 million rupiah a month in November 2012.

Notes

This is not the first time that these kind of claims have been made by business groups. In February the Indonesian Employers Association (Apindo) was quoted as saying that 10 foreign companies, mostly from South Korea and India, have relocated their businesses to other Asian countries because of recent wage rises, only to have the Investment Coordinating Board (BKPM) later publically refute the claim.

['Empat Pabrik Asal Korsel Tutup? Itu Pembohongan Publik!' - Kompas.com. Selasa, 20 Agustus 2013. Translated by James Balowski for the Indoleft News Service.]

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