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PT Shoes Bata Factory Closure Leaves Hundreds Jobless in West Java amid COVID-19 Impact

Jakarta

The closure of the PT Shoes Bata Tbk (BATA) factory in Purwakarta, West Java is in the public eye. Head of Social Security Department of Industrial Relations and Employment of West Java Manpower and Transfer Office, Firman Desa, said layoffs affected as many as 233 workers, aka layoffs.

Firman said that labor-intensive industries in West Java have been hit since 2023. According to him, several factories have been closed or their businesses have been relocated.

“In terms of factories in the same sector or intensive work, from 2023 many will have closed or moved, one of them is in Karawang, they have moved to Cirebon,” he said in CNBC Indonesia’s Evening Up, which was announced on Wednesday (8 /5/ 2024).

He said that this situation could not be separated from the impact of the COVID-19 pandemic in 2020. As a result, several businesses have started to implement efficiencies and reduce their business activities.

“So the impact of the pandemic is also, other things, many labor-intensive industries have started to make efficiencies or have reduced their business activity,” he said.

Especially for the Bata shoe factory, Firman said that operational activity had stopped. Currently, the process is being done to resolve the issue of severance pay for employees affected by layoffs.

At the same time, based on data from the Ministry of Manpower (Kemnaker), layoffs in West Java for the period January-March 2024 were recorded at 2,650 workers. The details are 306 employees in January, 654 in February, and 1690 in March 2024.

In detail, the following are the number of layoffs in various provinces in Indonesia:

  • DKI Jakarta 8,876 employees
  • Central Java 8,648 employees
  • West Java 2,650 workers
  • Banten 941 workers
  • Riau 666 workers

(yes/that)

2024-05-08 12:00:16
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