Bintan Lagoon Resort (BLR), the largest integrated resort in Bintan Regency, Riau Islands has decided to cease operations, after sustaining losses over the past two years.
The resort’s financial woes were worsened due to the impact from Covid-19, with CNBC Indonesia indicating that the property had filed for bankruptcy.
The written closure plan was submitted to the Bintan Regency Employment Agency on July 31, 2020.
Indra Hidayat, head of Bintan Employment Agency, was quoted by Indonesia’s Antara News Agency as saying that his party has dispatched a team to review BLR’s closure plan. “We also provide guidelines on matters that need to be fulfilled by BLR in order to close their business,” he added.
Some 500 staff will lose their jobs with the closure. Indra shared that he would oversee the process of layoffs for BLR employees, especially in ensuring the company fulfil its contractual obligations to employees in accordance with applicable labour laws.
TTG Asia did not receive a response from BLR by press time.
Edit: The original posting overlooked an attribution to CNBC Indonesia for the bankruptcy report.