"The government must be proactive in responding to this issue. The rights of employees facing layoffs must be upheld, and we need to assess whether this poses a risk of deindustrialization," Manalu expounded here on Friday.
As a member of Commission VII of the House of Representatives (DPR), which oversees industrial affairs, he emphasized that the closure of the PT Sanken factory should serve as a warning about the threat of deindustrialization, which occurs when the manufacturing sector declines.
He said that deindustrialization can be measured by a decline in the output, employment, and share of manufacturing exports. If this occurs, it can have severe consequences for the national economy, he added.
"The government needs to have accurate data, similar to that in the financial and banking sectors, to address this issue. If factories are closed and thousands of people are affected, the number of poor people will increase," he continued.
Manalu also cited Manpower Ministry data showing that approximately 80 thousand workers were laid off in 2024, an increase from 60 thousand in 2023.
If the factory closes, many people will lose their jobs, which will affect their purchasing power. Therefore, he urged the government to take concrete action.
"Regulations must be improved and imports of finished goods should be tightened to protect the competitiveness of the domestic market, alongside efforts to enhance the quality of domestic production," he said.
Earlier, the Ministry of Industry announced that PT Sanken's electric equipment factory in the MM2100 Industrial Estate in Cikarang, West Java, plans to cease production in June 2025.
Speaking in Jakarta on Wednesday, Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) at the Ministry of Industry, confirmed that the soon-to-be-closed Sanken factory was wholly owned by foreign investors.
Diarta stated that the factory's production had been steadily decreasing, with a utility rate of just 14% in 2024.
Diarta added that the closure, located in MM2100 Cikarang, was initiated by the Japanese parent company, which is shifting its production focus to semiconductors.
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Translator: Fath M, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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