Five Companies Move from Tangerang Over High Labor Cost

Tangerang, Banten (Antara) - An official of the industry ministry said five companies had moved to other areas from Tangerang, Banten, over high labor cost. "The increase in the urban minimum wage has forced five companies from Tangerang to operate in other areas where labor cost is cheaper," head of the city industry and trade office Mohammad Noor said here on Tuesday. A businessman considers a number of factors including labor cost, availability of basic material and market potential before opening a company in a city, Mohammad Noor said. The five companies abandoned business operations in Tangerang because of the higher labor cost although workers are easily available in the city, he said. With workers demanding pay hike every year and the plan to raise the electric tariff , it would not be feasible for the five companies to continue operations in Tangerang, he added. The hardest hit is the workers, themselves, with more people losing jobs, he said. (*)