"During the January-June period, 27 companies closed down, causing some 900 people to lose their jobs," Rudi Sakyakirti, head of the Batam manpower office, said here on Monday.
The number of people laid off might increase because PT Foster 5 Indonesia plans to close down this year, and PT Unisem next year.
Last year, 60 companies ceased operations in Batam, causing thousands of workers to lose their jobs, he said.
Rafki Rasyid, chairman of the Indonesian Businessman Association (Apindo), said that while several companies had closed down, new companies were opening up in Batam.
He said the companies were closing due to the fact that workers' salaries in Batam are relatively high compared to that of Myanmar, for instance. Related news: Batam to curb recruitment of low-skilled foreign workers
Related news: Batam seeks to revive shipyard industry
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