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Islands in focus: ConocoPhillips lays off workers
ConocoPhillips Indonesia has laid off 300 of its 1,200 Indonesian employees in South Sumatra, Anambas and Jakarta over the last couple of months
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onocoPhillips Indonesia has laid off 300 of its 1,200 Indonesian employees in South Sumatra, Anambas and Jakarta over the last couple of months.
The company justified the move by citing the need to increase efficiency due to the impact of the drop in global oil prices. Workers at the company's Batam branch are also at risk of being laid off.
ConocoPhillips Indonesia development and relations vice president Joang Laksanto said Wednesday that the US-based oil and gas giant was being forced to carry out cost-saving measures in various sectors.
'We are facing fixed production costs as the price of oil drops, so our income has dropped by almost half. That's why we have made the decision to no longer extend the contracts for workers,' said Joang.
On Thursday last week, workers who rejected the decision occupied Palmatak Base Airport, operated by ConocoPhilips, in Anambas, Riau Islands.
'Despite requests to accommodate the local workers, I told regional leaders we could not extend their contracts.
