Floodwater Causes Losses US$400 Million for Industry
Wednesday, 14 February, 2007 | 14:37 WIB

TEMPO Interactive, Jakarta: Industry Minister Fahmi Idris has estimated that the industrial sector lost US$400 million (about Rp3.6 trillion) as a result of the floodwaters that hit Jakarta and its surrounding areas in early February.

According to Fahmi, the estimation was twice larger compared to the one made in 2002.

“In 2002, insurance companies recorded that (industry) lost US$200 million (about Rp1.8 trillion),” said Fahmi when visiting Pulogadung Industrial Region, East Jakarta.

In 2002, only small parts of the National Bonded Zone in Cakung, East Jakarta, were hit by the floodwaters.

This year, almost all of the areas were hit by the floodwaters with depths of up to one meter high.

Fahmi added that he will collect data and input from all companies that were hit by floodwaters during the next week.

He said he hoped that in March or April, he will be able to issue a policy to find a way out of the problem.

“We do not want the floodwaters to be the trigger for investors to leave Indonesia,” he said.

According to Agus Supriyanto, Managing Director of PT Kawasan Berikat Nasional (the national bonded zone), investors in the area have lost Rp266.40 billion and cannot export goods.

Investors have also suffered losses because of ruined capital goods, raw materials and finished products, which amounted to Rp140.29 billion.

This year, the floodwaters have resulted in 2,690 small- and medium-sized enterprises in Jakarta suffering losses of more than Rp150 billion.

The losses were due to the damaged machinery, raw materials and finished products.

Budi Saiful Haris