Legal aspects in the business feasibility study

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Reference no: EM133088246

Mojokerto - PT Jatim Steel Abadi's steel factory in Bulaksempu Hamlet, Gebangsari Village, Jatirejo District, Mojokerto Regency was forcibly closed by a joint team, Tuesday (26/7/2016). The factory was determined to operate for two years without having an operational permit.

A joint team consisting of Satpol PP, Manpower and Transmigration Office, BLH, and the Mojokerto Regency Integrated Licensing and Investment Agency (BPTPM) checked the completeness of PT Jatim Steel Abadi's permit. The joint team, which was escorted by the Jatirejo Police, found that the steel factory did not have an operational permit. "It turns out that this steel factory does not yet have a HO (nuisance permit) and IUI (Industrial Business Permit). Therefore, we stopped the company from operating first," said Head of the Mojokerto Regency Satpol PP, Suharsono at the location. Ironically, said Suharsono, the factory that produces steel bars for the construction of the building has been operating since about two years ago. According to him, in 2014 his party sealed the factory in Bulaksempu Hamlet because it did not have a permit. However, at that time the company argued that it was only doing a trial.Several months ago, local residents who were getting restless with factory fumes complained to the Mojokerto Regent. His party was also dispatched to check the legality of the factory which stands on an area of ??4,000 square meters. Apparently, since 2014 until today, the factory which also employs foreign workers from China continues to operate. According to him, the company has violated Regional Regulation No. 2 of 2013 concerning Community Involvement. Therefore, continued Suharsono, his party forcibly stopped steel casting activities at the factory. The clerk sealed the casting machine and put up a sealing plaque at the factory entrance. As a result of the closure, dozens of workers were sent home. "This closure is until the operational permit is pocketed. Later supervision will continue to be carried out by the relevant agencies. The village government and local residents are ready to help supervise," he said.

Source: https://news.detik.com

Based on the case study above, explain your analysis of what the company should do related to the legal aspects in the Business Feasibility Study so as not to experience business closure as in the case of the company above.

Reference no: EM133088246

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