Ten big companies will shut down their production in Indonesia as a result of unfavorable employment policies, according to Sarman Simanjorang, the deputy chairman of the Jakarta chapter of the Indonesian Chamber of Commerce and Industry.

"Indonesia is less competitive than Vietnam and Cambodia. Both countries provide [better] industrial facilities and lower wages for workers by 10 percent," Sarman told Temp.co on Monday, adding that the current national industrial sector was in trouble.

Sarman refused to reveal any of the 10 names as the companies have planned to officially make an announcement at the office of the Indonesian Employers Association (Apindo) on Wednesday.

Sarman, who said that these companies would relocate their factories to other countries, added that the impact could increase unemployment figures.

Hariyadi B. Sukamdani, the deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said other companies likely to close included Samsung, Panarub, Shukakhu and Patria.

Hariyadi said that the investment and industrial climate was no longer conducive in Indonesia as the government was taking the side of employers related to worker's demands for higher wages.