Arya Dipa, Jakarta – The Industry Ministry has issued more than 5,800 operational permits to companies in West Java to keep operating amid the large-scale social restrictions (PSBB).
"Around 5,800 companies have been granted permits by the ministry. In total, these companies employ almost 1.6 million workers," West Java Trade and Industry Agency head Mohammad Arifin Soedjayana told The Jakarta Post on Tuesday.
Arifin explained that West Java had received the most operational and mobility permits (IOMKI) compared with other provinces in the country.
"Most of the companies that have received the permits are located in Purwakarta, Bekasi, Karawang and Bogor," he said.
However, out of the 5,800 permits issued, 58 have been revoked because the companies failed to implement the necessary health protocols to curb the spread of COVID-19.
Head of West Java Manpower and Transmigration Agency, Mochamad Ade Afriandi said that since the COVID-19 pandemic started 1,208 companies in the province had laid off their workers temporarily or permanently.
"So far 80,752 workers have been laid off or been forced to take unpaid leave. The number has increased significantly from April 5th when we recorded 53,465 workers affected by the pandemic," Ade said.
He explained that more than 50 percent of the layoffs occurred in textile and textile product (TPT) companies.
"Of the permanent layoffs 58.29 percent were carried out by TPT companies, followed by manufacturers with 18.26 percent and restaurant and accommodation companies with 6.10 percent," he said.
Of the workers who were forced to take unpaid leave 42.3 percent worked in TPT companies, he added, followed by accommodation and restaurants (23.71 percent), manufacturing (15.61 percent) and tourism (7.28 percent).
The COVID-19 pandemic has hit West Java industry hard. Head of the West Java Financial Services Authority (OJK), Triana Gunawan, said that as of May 14, 1.19 million companies had requested debt restructuring of loans amounting to Rp 61.5 trillion.
Triana explained that the OJK had granted the request for 665,917 borrowers, with Rp 29.5 trillion of loans, while the remaining 519,500, with total loans of Rp 32 trillion, were still being processed. (nal)