The storm of Termination of Employment (PHK) for a number of large companies in Banten Province, is still continuing. From about 4,800 medium to upper-middle companies, one by one they are starting to improve employee efficiency, especially those that produce footwear with a main export orientation. Latest data, the Adidas shoe factory is in the process of carrying out mass layoffs of around 5,000 employees out of a total of 9,000 employees. The factory owned by an investor from Korea Seralat, PT Parkland World Indonesia (PWI) 1, located in Gorda, Serang Regency, was forced to carry out mass layoffs for reasons of operational cost efficiency.
PWI 1 reportedly carried out mass layoffs because it was planning to relocate its factory to the Central Java region. The relocation was taken with the consideration that the City/Regency Minimum Wage (UMK) in Banten Province was higher than in Central Java. So that by doing so, the company can make operational cost efficiencies.
"Right now the global economic conditions are difficult. That's why export-oriented footwear companies will definitely make efficiencies, one of which is by way of mass layoffs and relocating factories to areas where the minimum wage is cheaper," said Edi Mursalim, Sunday (6/25/2023).
Previously, the Adidas shoe factory in Tangerang, Banten had also laid off around 1,400 employees. This news was confirmed by the Main Director of PT Panarub Industry Budiarto Tjandra.
In the midst of this condition, Banten received a new investor, PT Sinar Texindo Utama (STU) in Jawilan and Kopo Districts, Serang Regency. With a land area of around 121 hectares, PT STU has formed a new integrated industrial area which includes the Industrial Hub, Textile Hub and Garment Hub.
Edi continued, PT STU is an old player in the world of textile and garment business. However, he doubted that PT STU would be able to survive for a long time amidst the condition of dozens of garment, textile and shoe factories that were relocating to the Central Java region.
“A garment, textile or shoe factory is easy. They just need to move the sewing machine to a new place, unlike other types of companies. But the problem is, if the orientation is export, we can be sure it won't last long," he said.
Edi admitted that a number of large companies prefer to relocate to Central Java because the minimum wage there is cheaper. For example, in Boyolali Regency, which did not reach Rp. 2 million, Brebes Regency was also almost the same.
While in Banten, it reached IDR 4.4 million, twice that of them. The difference from that can be used to pay for asset development capital. So that within five years, you can be sure that the asset debt has been paid off and they can make more profits.
“The assets here, could later be made into apartments or whatever. What is clear is that they will still use it for money circulation. It's easy in our country, rich people like that," he said.
Out of a total of around 121 hectares of land in the new industrial area owned by PT STU, it is divided into three zones, the first is the industrial plot area of 67.4 hectares, facilities and infrastructure such as warehouse plots of 57.1 hectares, commercial plots of 12.2 hectares, workshop plots of 14 .3 hectares, TPS LB3 7.3 hectares and provided space for Green Open Space (RTH) of 32.9 hectares.
Responding to this, Acting Governor of Banten Al Muktabar admitted that he had a special strategy to make investors in Banten feel comfortable investing. One of them is by encouraging the self-inflovmen movement in accordance with the authority possessed by each Regional Government (Pemda) in Banten.
“For example, health and education issues for the families of workers or employees. We can cover it through the BPJS program and free education that we have, so they are not burdened with that anymore," said Al.
Al claims that the opening of a new industrial area in Banten Province is the right choice. Because there will be many benefits for investors.
