Bandung, IndonesiaSentinel.com — Quantum, the iconic gas stove manufacturer, had to layoffs its workers after being officially declared bankrupt by the Commercial Court of the Central Jakarta District Court on July 22, 2024. According to Iwan Budi Buana, Director of PT Aditec Cakrawiyasa, the company’s bankruptcy was driven by declining sales and mounting debt. The court’s ruling has led to the termination of 511 employees.
Quantum’s fall marks the end of an era for the once-legendary producer of gas stoves, hoses, and regulators. The company, which had long been a household name in Indonesia, is now part of history.
In response to the bankruptcy, Franky Sibarani, Vice Chairman of the Indonesian Employers Association (Apindo), commented that Apindo provides businesses the flexibility to make their own decisions. He emphasized that while layoffs are sometimes inevitable, they should always be a last resort.
“We give space to the businesses. If layoffs can’t be avoided, then they are the final step. But if there are still other ways to be efficient without layoffs, that would be much better,” Franky said, according to CNBC Indonesia on Thursday, September 12, 2024.
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Franky added that Apindo respects whatever decisions companies make but noted that the association has limited access to Quantum’s financial statements and market conditions, which prevents them from commenting extensively on the company’s bankruptcy.
“I believe that if Quantum reached this decision, there must have been significant implications. It could be due to imported products or a combination of various factors,” Franky remarked.
Iwan Budi Buana, speaking on behalf of PT Aditec Cakrawiyasa, highlighted that the bankruptcy was caused in part by the fierce competition between local products and cheaper imports. In recent years, Quantum has struggled to compete with lower-priced imported goods, particularly from China, despite efforts to increase the domestic content of its products.
“We’ve achieved 60% domestic content (TKDN), which is significant for locally produced goods. But now, we’re facing imported stoves from China while we’re trying to manufacture locally,” Iwan told CNBC Indonesia on Wednesday, September 11, 2024.
Quantum collapse that lead to workers layoffs underscores the challenges faced by local manufacturers in an increasingly competitive global market, where imported products often dominate due to lower costs. The company’s bankruptcy and subsequent layoffs are a stark reminder of the pressures facing domestic industries in Indonesia today.
(Raidi/Agung)
