TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Workers fear U.S. crisis effects

Workers at the PT Boyang Industrial wig and imitation eyelash factory in Purbalingga, Central Java, are watching the U

Agus Maryono (The Jakarta Post)
Purbalingga
Thu, October 9, 2008 Published on Oct. 9, 2008 Published on 2008-10-09T10:27:05+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

W

orkers at the PT Boyang Industrial wig and imitation eyelash factory in Purbalingga, Central Java, are watching the U.S. economic crisis nervously, as 85 percent of their products are sold to the United States.

"We worry about what's happening in America, where many business are affected by the economic crisis. We hope the crisis will end soon so it doesn't affect us," said Yulian Rispandi, general manager of the factory, which employs about 7,000 women.

"All of our products are exported to the U.S.," said Yulian, adding that 19 factories in the regency were owned by Korean and Chinese investors.

PT Boyang Industrial, owned by a South Korean investor, produces between 10,000 and 12,000 wigs per day, worth US$10 each. It exports between 70,000 and 90,000 units to the United States every week.

The flourishing business employs a large number of workers in Purbalingga and people treasure it as an icon of their regency.

The regency is the world's second largest wig and imitation eyelash manufacturer after Gwangju in South Korea.

With such business prospects, the U.S. financial crisis has workers in Purbalingga nervous.

Investors in these businesses are also concerned by the crisis, even though the number of exports remains high.

"So far, the number of exports is still normal. We hope the economic conditions in the U.S. will recover soon," Yulian said.

Separately, head of the Purbalingga manpower agency, Basuki Rahmat, confirmed the important role of the 19 factories.

"That industry employs more than 35,000 workers, 90 percent of whom are female. Of course, the economic crisis in America is worrying us greatly," said Basuki, adding that the number of foreign investors in Purbalingga has, so far, increased every year.

"We do appreciate their investing here, but we ask them to be attentive to workers' welfare by, at least, supporting them with certain insurance," he said, adding that many companies in Purbalingga have failed to pay their workers proper salaries according to regional minimum payment regulations.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.