Batam – Hundreds of workers at PT Varta Microbattery Indonesia (VMI) in Batam, Riau Islands, went on strike on Wednesday.

The deputy chairman of the company's metal workers union, Ramon Yapeth, said on Wednesday that management and the union had deadlocked on housing allowances, with the workers asking for Rp 250,000 (US$28.25) a month and the company countering with Rp 100,000.

"We decided to go on strike. What do they mean, offering Rp 100,000 a month? That's not enough to pay the electricity bill, let alone the rent," Ramon said.

PT VMI human resources manager Puji Hartani said that the company was still negotiating with the workers. "Our lawyers are still working out a draft for a win-win solution. I can't give details on the amount to be paid by the company. Just wait, it will soon be complete," Puji said.