US-Europe crisis not to cause mass layoffs in Indonesia

US-Europe crisis not to cause mass layoffs in Indonesia

Bank Indonesia. (ANTARA/Rosa Panggabean)

Batu, East Java (ANTARA News) - The economic crisis in the United States and Europe is unlikely to cause massive worker layoffs in Indonesia, a senior Bank Indonesia (BI/the central bank) official said.

"We do not yet see the likelihood of massive worker layoffs in Indonesia," BI senior economic researcher for Surabaya, Soekowardojo, said here on Saturday.

He said that BI had cpnducted a survey among at least 60 respondents in industrial circles and most of them said they expected to maintain their workers.

"They have a commitment not to lay off their workers," he said.

However, he said, a worker layoff threat did exist in furniture industries because their markets were mostly in the United States and Europe.

The United States and Europe have been the main destinations of Indonesia`s furniture exports.

"So far, the demand of the United States for Indonesia furniture is big," he said.

He said that the economic crisis in the United States and Europe could reduce Indonesia`s furniture exports by 10 percent.

"In order to anticipate this condition, we call on producers in the country to sell their products at home," he said.
(Uu.A014/HAJM)

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