Indonesia
A NUMBER OF INDUSTRIES LAY OFF EMPLOYEES DUE TO DIFFICULTY OBTAINING IMPORTED RA
Businesses are concerned that the National Commodity Balance System (Sinas-NK) will cause termination of employment or layoffs, as the supposedly IT-based system has created serious problem to import raw materials. On 31/01, a number of importers of raw materials and finished iron and steel products came to the Ministry of Industry and submitted an open letter to the Director General of Metal, Machinery, Transportation Equipment and Electronics. According to the companies, many industries have stopped production because there is no longer any stock of raw or auxiliary materials for production. Moreover, many industries cannot import iron and steel anymore, as their import approvals have expired. Chairman of the Association of Electronics and Home Electrical Appliances Industry (GABEL), Oki Widjaja, stated that the system experiences frequent interruptions, making it difficult for entrepreneurs to obtain raw materials. If the government cannot resolve the problem soon, Sinas-NK could cause the industry to lay off workers. “Factories cannot last long if they don't generate sales, which can result in layoffs," he said on 29/01. Widjaja stressed that Commodity Balance should simplify export-import licensing and provide legal certainty in business licensing. Instead, it has haunted companies with uncertainty over the supply of raw materials. Chairperson of the Association of Indonesian National Importers (GINSI), Capt. Subandi said, this problem is very unfortunate as it causes supply chain delays to the manufacturing, consumer goods and other industries. Thousands of entrepreneurs are very dependent on government regulations. The potential for layoffs or layoffs and supply chain disruption to the industry is difficult to prevent if the government does not revise its policies. This problem must be resolved immediately, he stressed. (Katadata, GridOto) (ICE GIACARTA)
Fonte notizia: Katadata - 31 January 2023