Half-Million ‘to Lose Jobs in 2009’
JAKARTA ~ A leading Indonesian business association warned this week that about half a million people will lose their jobs in the country this year due to the global financial crisis.
“About half a million people will lose their jobs this year. Especially those in the construction, manufacturing and the plantation sectors,” Indonesian Employers Association chairman Sofjan Wanandi said.
“There will also be many layoffs in the textile business but not so many in the financial sector.”
Wanandi said the government should act fast in spending on infrastructure projects to stimulate growth.
“We’ll be better off if the government can start spending for infrastructure projects this month,” he said, adding that demand from the domestic market has dropped in line with tumbling commodity prices.
“Many medium and small companies will be out of business compared to the big ones, which have better cashflow.”
Growth in Southeast Asia’s biggest economy exceeded six percent last year but the government is targeting 4.5-5.5 percent this year.Filed under: The Nation