Mass Labour Protests In Indonesia Next Week

15 November, 2012
Source: ANN

Thousands of workers took to the streets in Purwakarta, West Java, in ugly protests yesterday that saw most roads closed.

The protests came ahead of planned mass demonstrations across Java next Tuesday, with 70,000 expected to rally in Jakarta alone.

Indonesians are demanding a rise in the minimum wage and a ban on employing contract workers - two problems they cite as barriers to improving their welfare.

Said Iqbal, one of three labour leaders representing the Alliance for Labour Unions in Indonesia (MPBI), said: "We are forcing, not asking, the government to amend the laws to limit (contract jobs) and implement a better wage system. There will be no compromise until there is a change or more transparency."

Labour groups are also denouncing comments by Sofyan Wanandi, chairman of the Indonesia Employers Association (Apindo), who said that 80 per cent of those who took part in strikes and demonstrations were hired to do so and were not union members.

The protests came despite Industry Minister Mohamad S. Hidayat's announcement on Monday that the government may raise the minimum wage to 2 million rupiah (US$207) a month, and that Jakarta's minimum wage may go up by 50 per cent.

The labour leaders' statements show a growing distrust of the government and increasing boldness on the part of workers to demonstrate for change.

A nationwide strike in early October crippled production at 1,000 factories, causing an estimated 1 trillion rupiah in losses, Apindo claimed.

These protests have been rising in frequency even as Indonesia posted strong growth and attracted a record US$5.9 billion in foreign direct investment in the third quarter of this year. Singapore was one of the top investors.

A survey by the Organisation for Economic Cooperation and Development September found that Indonesia's minimum wage is among the highest in the world relative to average salaries at 65 per cent. But labour leaders say it is not enough as the minimum wage is set based on an unmarried worker's needs, and the lack of monitoring allows many companies to breach the requirement and flout laws on limiting contract jobs.

Manpower Minister Muhaimin Iskan- dar has been busy talking to provincial wage councils and governors, who have the authority to decide on the minimum wage, to consider more variables such as the needs of dependants and estimated future inflation.

Aggressive action, such as workers forcing their way into factories to get others to strike, has unsettled many companies. Some Japanese and South Korean firms have sought help from their embassies to discuss the issue with the Manpower Ministry.

Yesterday's protests in Purwakarta are the first of several scheduled over the next few days.

On Saturday, MPBI officials will lead a meeting in Batam with about 50,000 workers. Next Monday, workers in Surabaya will take to the streets. On Tuesday, workers from industrial estates on the outskirts of Jakarta will march on the presidential palace and Parliament. Apindo says 23 companies have plans to suspend operations if demonstrations continue to be rowdy.

The International Labour Organisation's deputy director Michiko Miyamoto describes the labour situation as complex, but says the main issue rests with the implementation of the law.

"The biggest problem is the lack of clarity over the laws. Once this is resolved and the government shows the political will to implement this, workers and investors may be reassured."

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