3 hours ago
11
February 24, 2025 | 10:39 am
TEMPO.CO, Jakarta - In February 2025, PT Sanken Indonesia announced via the Online Single Submission (OSS) system that it will be shutting down. After nearly 30 years in the electronics industry, the company will officially cease operations in June 2025.
The closure decision stems from various factors, including a request from its parent company in Japan.
The shutdown decision of a company with 24 branches and a sprawling factory area will undoubtedly have a significant impact on the Indonesian market. This is because Sanken is one of the largest electronic component manufacturers in Indonesia.
Not to mention the considerable innovation and production of goods carried out by this company. These include washing machines, water dispensers, refrigerators, LED and tube televisions, air conditioning (AC), solar water heaters, and audio equipment.
The large volume of goods produced has clearly contributed to their widespread circulation in society. It's no surprise that the demand for electronic components is expected to remain high.
Given the news of the shutdown, the likelihood of a disruption in the local industry's supply chain becomes more apparent, particularly for local electronics companies that rely on major suppliers rather than imported spare parts.
Additionally, given the large number of employees at the company, unemployment will inevitably rise. The exact number of job losses remains uncertain due to the diverse employment system at PT Sanken, which includes permanent, contractual, and other types of workers.
This increase in unemployment will have a significant impact on both the community and the government. With reduced income, people's purchasing power will decline, which in turn will likely lead to a rise in poverty rates.
The closure of the factory will also compel the laid-off employees to acquire new skills in order to seek other employment. However, these new opportunities may not necessarily align with the industries they were previously involved in at PT Sanken.
Bane Raja Manalu, a member of the House of Representatives Commission VII, has expressed his concerns about the announcement of the company's closure. He revealed that the closure of PT Sanken will have a profound impact on industries in Indonesia, and therefore the government must respond to it proactively.
He even speculated that this closure could potentially pose a threat of deindustrialization, as quoted from Antara.
The speculation of the threat of deindustrialization is not unfounded, considering the length of PT Sanken Indonesia's production and its significant contributions. The company's contributions in supplying electronic goods should indeed be noted when seeking suppliers the size of Sanken.
Although PT Sanken has announced its closure, it is not due to issues within the industrial climate in Indonesia. Nevertheless, this closure will have a significant impact on the electronic industry in Indonesia. This could serve as a reminder for the government to review its policies to maintain industries in Indonesia.
Editor's Choice: Sanken Factory Closure: 459 Workers Reject Layoffs, Demand Severance Pay
Click here to get the latest news updates from Tempo on Google News
Sanken Factory Closure: 459 Workers Reject Layoffs, Demand Severance Pay
2 hari lalu
Sanken employees still want to work and are demanding to be compensated for the gradual layoffs the company plans to implement.
Luhut Denies 'Indonesia Gelap' Condition, What Is the Actual Situation?
4 hari lalu
In response to 'Indonesia Gelap' (Dark Indonesia), Luhut mentioned Indonesia is not in 'the dark' but the data on unemployment says otherwise
Working Overseas: What You Need to Know to Become Migrant Worker
4 hari lalu
Regulations regarding these workers are stipulated in Law No. 18 of 2017 concerning the Protection of Indonesian Migrant Workers.
Indonesia's Poverty Rate Falls, But Inequality Rises: LPEM FEB UI
17 hari lalu
Several regions in Indonesia show high levels of inequality albeit the poverty rate is declining.
Free Nutritious Meal is Govt's Effort to Resolve Poverty: Deputy Minister
18 hari lalu
Social Affairs Deputy Minister Agus Jabo Priyono said the free nutritious meal (MBG) program is one of the government's efforts to resolve Poverty.
Minister Zulhas: Food Aid Paused During Harvest Season
19 hari lalu
Coordinating Minister for Food Affairs Zulhas assured that social assistance programs will continue despite government budget adjustments.
Industry Ministry Reportedly Will Implement WFA to Cut Budget, Here is the Ministry's Response
20 hari lalu
Indonesia's Industry Ministry will start implementing Work From Anywhere (WFA) and cutting a number of budgets concerning spending efficiency.
Industry Ministry Claims Natural Gas Price Hike Has Insignificant Impact on Industry
23 hari lalu
According to the Ministry of Industry, the surcharge implementation for seven industrial sectors receiving HGBT could affect the industry.
Poor Citizens Urged to Work in Free Nutritious Meal Kitchens, Minister Says
24 hari lalu
Poor people can work in delivery, shopping, and food distribution in the Free Nutritious Meal program.
Indonesia Asks Boeing to Build Factory and Flight Training Center in the Country
28 hari lalu
Indonesian Deputy Minister of Industry asks the American aerospace company, Boeing, to build a component factory in Indonesia.
