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Long weekend sparks concerns in manufacturing industry

Jakarta Globe - June 28, 2023

Investor Daily, Jakarta – Indonesians across the archipelago are enjoying a long holiday for Eid al-Adha, but the extended weekend has sparked concerns in the manufacturing industry.

The government recently declared June 28 and 30 as collective leave days around the Eid al-Adha which falls on June 29. This gives Indonesians a five-day weekend, although the government stated that the collective leaves would depend on the agreement between the employers and employees. However, the government only announced it on June 16.

"[The announcement] came at a short notice. It is important for businesses to make a good work plan," Indonesian Food and Beverages Producers (Gapmi) chairman Adhi Lukman told Investor Daily in Jakarta earlier this week.

According to Adhi, industries have already planned their production activities and delivery deadlines long ago. The long break can also take a toll on manufacturing productivity.

"Countries like Vietnam are adding their working hours. We already have lots of holidays yet we are adding the collective leaves," Adhi said, while also revealing that Indonesia has the most holidays compared to other ASEAN countries.

Bobby Ghafur Umar, the deputy chair for industry at the Indonesian Chamber of Commerce and Industry (Kadin), said that the long weekend could disrupt manufacturing activities.

"They have orders that they have to deliver, and of course, they would have to meet the buyers' standards. With a break that long, it would be difficult for them to meet that commitment," Bobby said.

He added: "The manufacturing industry cannot make sudden changes to its plan. So if possible, [the government should] announce the [collective leaves] at least a month prior."

The additional leaves are also expected to increase production costs due to overtime pay for the already-struggling textile industry, according to the Indonesian Fiber and Filament Yarn Producer Association (APSyFI).

"Workers' wages account for around 25 percent of the total production costs. With overtime, those costs can rise up to 35 and 40 percent," APSyFI chairperson Redma Gita Wirawasta said.

Source: https://jakartaglobe.id/business/long-weekend-sparks-concerns-in-manufacturing-industr