Jakarta, Nov 8 (ANTARA) - Even as the government makes efforts to
correct the country's labor system, which has caused trouble between
workers and employers so far, Indonesian firms threatened on Wednesday
to stop production if the government did not provide a secure labor
environment.
Various trade unions took out rallies in streets and company premises
to demand better welfare and the termination of the
outsourcing-recruitment system. These rallies often turned anarchic and
disturbed the operations and production of companies.
As a result, many companies suffered losses and are considering
relocating their factories overseas. At least six foreign companies
closed down. Companies under the Indonesian Businesses Association (Apindo) have
threatened to stop production if this problem remains unresolved.
Apindo Chairman Sofyan Wanandi said he would order all Apindo members
to lock out production nationally if the government failed to provide
security and legal certainties for their businesses.
"We ask for legal certainties from the government. We have made a
decision regarding this situation with representatives of (all Apindo)
international firms," Apindo Chairman Sofyan Wanandi said on Wednesday.
According to Sofyan, the companies will stop production nationally
because the government has not yet been able to provide business
security in the matter of uncontrolled labor rallies. He said overcoming
social unrest as a result of labor demonstrations was a common
responsibility.
"We had better stop operations if we continue to suffer losses. This is
a step to safeguard the Indonesian economy," the Apindo chairman
stressed.
Capital Investment Coordinating Board (BKPM) Chairman Chatib Basri said
meanwhile that the recent trend of increasingly frequent labor rallies
posed a threat to investment in Indonesia.
"We have to seriously deal with anarchic labor demonstrations, because
it could disturb the rapidly growing and improving investment climate,"
noted Chatib on Monday.
He
said all citizens had the right to express their aspirations through a
rally or demonstration, but had to do it in a peaceful way that did not
damage public facilities and reduce foreign investors' trust in the
country's security system.
"All sides hope for improvement in workers' welfare and their standard
of living, but the growth of investment is also important because it
creates jobs," Chatib said.
Moreover, investment in Indonesia is now growing rapidly. Up to
September this year domestic investment increased 27 percent to Rp229.9
trillion, compared with the same period a year earlier, while foreign
investment has been recorded at US$18.3 billion, approaching total
foreign investment last year.
"This is a good investment-growth momentum, but this momentum should be
maintained by creating harmonious relations between workers and
employers," the BKPM chairman said.
Therefore, the House of Representatives (DPR)'s Commission VI on
industry and investment affairs asked the government to settle problems
which hampered investment, such as labor issues, infrastructure and
national logistics.
"Compared with other countries, Indonesia is only superior in terms of
natural resources and population numbers, but inferior in the labor,
infrastructure and logistics sectors," Sukur Nababan of Commission VI
said.
That's why, he said, the government should be able to overcome problems
emerging in the industrial sector. "If they remain unresolved they will
hamper the economic-growth target," Sukur said.
According to Apindo Chairman Sofyan Wanandi, six companies have closed
down as a result of worker demonstrations. The firms are PT S, an
Indonesian cable factory; PT BHI, a plastic injection firm of South
Korea; PT DGW, an agrochemicals company from China; PT TP, a packing and
printing firm from Japan; PT SPI, a motorcycle spare-parts firm from
South Korea; and PT P, a heavy-equipment firm for mining from Japan.
Besides, a number of shoe factories have postponed their plans to
expand in Indonesia, following the waves of labor demonstrations in the
country.
"We are concerned with labor demonstrations which forced our workers to
join them. Some demonstrators turned anarchic so that we are forced to
stop production," said Haryanto, chairman of the board of patrons of the
Indonesian Shoe Makers Association (Aprisindo).
He said a number of investors had delayed the planned establishment of
new factories and expansion. "There are five or six companies," he said.
Haryanto, who is also a sports-shoe businessman, said he had also
delayed his plan to expand his factory, although he had set aside US$100
million for the expansion, which was expected to employ about 10
thousand new workers.
Shoe Innovation Center Director of PT Sepatu Bata Tbk, Fabio Bellini,
said in the meantime that the company had stopped production for three
weeks now. The company is estimated to suffer a loss of US$700 thousand.
"We did not get any profit; we may possibly relocate our factory,"
asserted Bellini.
In order to resolve the problem, the House of Representatives asked the
Manpower Minister Muhaimin Iskandar to make maximal efforts to solve
the labor problem.
"Labor rallies demanding the elimination of the outsourcing-recruitment
system would not happen if the minister is firm in resolving the
problem," Chairman of DPR's Commission IX on manpower affairs Ribka
Tjiptaning said.
The government should impose sanctions on problematic
outsourcing-worker suppliers. "So far, the government has had no courage
to take action against them," he said.
Minister Muhaimin Iskandar said last month that a new regulation to
remove the outsourcing system would be issued immediately. "The
regulation will be issued as soon as possible," Muhaimin said.
The
announcement came after repeated, large labor strikes occurred over the
past month in the country. Muhaimin said on the sidelines of the annual
meeting of Asian Productivity Organization (APO) in Denpasar, Bali,
that the outsourcing system could no longer be relied on to hire core
business workers.
The system could only be used for supporting jobs such as security
services, cleaning services, catering and other non-core jobs, he said.
"Companies will be given time to adjust to the regulation, and I hope
that in the process of transition, no workers need to be laid off," he
said.
In
the meantime, Director General of Manpower Development and Supervision
Muji Handayani expressed hope that companies would not stop production.
"We hope they will not stop their production process, because we have
already spoken to our worker friends. They are prepared to sit together
to discuss the problem," Muji Handayani said. ***2***
(T.A014/INE/H-YH)
(T.A014/A/KR-BSR/A/H-YH) 08-11-2012 18:25:1 |
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