Indonesian Job losses hit 230,000

Indonesian Job losses hit 230,000Jakarta - More than 230,000 Indonesians lost their jobs between October and March as the world's fourth-most-populous nation was battered by the global economic downturn, media reports said Thursday.

Most of the lay-offs were recorded in the textile, garment, automotive, shoe-making, and paper industries, according to Sofyan Wanandi, chairman of the Indonesian Employers' Association (Apindo).

Thousands of job losses were also recorded at palm oil plantations and in construction projects.

"Almost every day we receive consultation requests concerning workers lay-offs. Ever since chairing Apindo, we have never experienced receiving so many such reports as in these days," The Jakarta Post quoted Wanandi as saying.

Wanandi said most of the lay-offs occurred between January and March and far exceeded official government figures.

The Manpower and Transmigration Ministry in February put the number of permanent lay-offs at 30,000, with another
42,000 workers temporarily laid off.

Wanandi urged the government to immediately launch its 73-trillion-rupiah (6.8-billion-US-dollar) stimulus package.

Indonesia's economic growth fell to 5.2 per cent in the fourth quarter of last year and may ease to as low as 4 per cent this year.

President Susilo Bambang Yudhoyono this week urged Indonesian banks to immediately cut interest rates.

About 70 per cent of Indonesia's economy is driven by domestic consumption, and as exports and foreign investment recede, the government is relying on domestic consumption and state funding to stabilize the economy.

Wanandi has previously warned that the global economic crisis could force labour-intensive export industries to reduce their production capacity by up to 30 per cent, leading to at least 500,000 job losses by mid-2009. (dpa)

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