Based on data from Batam city island department of workforce & labor, from 2014 to 2017 the number of companies closed tend to increase. In 2014 there were 37 companies close and 13,620 employees are laid off. This figure increased in 2015 with 54 companies closed and 7,188 employees laid off. Then in 2016 there were 62 companies close down with 378 employees are laid off. While in 2017 there are 78 companies close and 1,286 employees are laid off.
Dozens of companies that close by 2017 come from various types of business backgrounds. Such as subcontracting for shipping, trade, employment service providers, restaurants, general contractors, and others. The reasons for the company to close were mostly from financial problems, internal conflicts between shareholders, or the project is completed, no more orders, even a ridiculous reason of not getting permission to continue the business from the government bodies.
According to Rudy, the city mayor of Batam, he does not rule out the number of companies that close will increase. Because the increase in minimum wage city (UMK) Batam amounted to 8.71 percent based on the Decree (SK) Governor Kepri Number 1138. “The Decree of the Governor of Riau Islands which has been ratified 40 days before 2017 is expected to be complained by a number of entrepreneurs, although until now no company has objected,” he said.