Layoffs not always affect poverty rate: Statistics bureau

Jakarta (ANTARA News) - The layoffs to be conducted by several companies will not always influence the poverty rate, according to Suryamin, the head of the Central Bureau of Statistics (BPS).

"It will not always have an impact (on the poverty level). After all, those planning to lay off workers are big companies. It will be seen later whether there will be an impact at the micro level," the BPS head noted here on Thursday.

He said the government is currently boosting the development of micro businesses, which do not import raw materials.

"These micro businesses can also absorb (workers). We will see later this February," he noted.

However, layoffs will affect the economy if more companies sever work relations with their workers, while there are not many new job opportunities in the micro sector.

"The impact of the layoffs will be seen only in the year ahead. We will see what it will be like at the end of 2016. Moreover, there is already a significant growth in micro businesses," he noted.

Several South Korean and Japanese electronics companies had reportedly planned to shut down their factories in Indonesia.

This will lead to thousands of Indonesian workers being laid off and staying unemployed.

The Indonesian Workers Union Federation recorded that the number of workers affected by the layoffs reached 1,700 at PT Panasonic, 970 at PT Toshiba, one thousand at Panasonic Lighting Cikarang Bekasi, 1,200 at PT Samoin, and five hundred at PT Starlink.(*)