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100,000 workers loose their jobs

Source
Straits Times - January 22, 1998

Jakarta – More than 100,000 workers in Central Java and East Kalimantan have joined the rising number of jobless in the country.

The Indonesian Observer reported on Tuesday that at least 100,000 construction workers in Central Java had lost their jobs as the prolonged currency turmoil brought construction projects to an abrupt halt.

Meanwhile, thousands employed in plywood factories were threatened by mass layoffs in East Kalimantan as firms struggled to continue with exports, Antara reported.

Construction projects in Central Java stood half-finished, brought to a halt as companies found themselves unable to secure funds to continue building.

The newspaper quoted the chairman of Central Java's Indonesian Construction Companies Association (Gapensi), Mr Soendoro, as saying many construction companies had been forced to lay off workers.

He said: "Actually we feel sorry knowing they have no jobs, but what can we do? The monetary crisis has hampered us and we have been forced into postponing many of our projects."

Many Gapensi members – Central Java has 3,649 – have cancelled or postponed projects. Prices of imported raw materials, such as iron ore, have increased sharply following the fall in the value of the rupiah.

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