By: Norman Triangga *)
Jakarta, CIDISS – Issues regarding labor issues in Indonesia seemingly never-ending. Various cases involving labor adorn almost every time Indonesian media. Last phenomenon is a demonstration of thousands of workers who are members of the Confederation of Indonesian Trade Unions (KSPI) at Istana Merdeka on February 6, 2016. Similar simultaneous action will be followed by thousands labor in Bogor, Karawang, Cikarang, Tangerang, Surabaya, Batam, Bandung, Medan, Aceh, Makassar. This action was done because a number of companies no longer extend the employment contract employees, instead they will likely shut down his company and leave Indonesia.
Panasonic and Toshiba’s decision to close a factory in Indonesia, due to the low purchasing power. As a result, sales products of two giant companies are also dropped. In addition, there are still two other electronics companies from South Korea were also closed down as of January 2016. Quoted from Kompas, the first is PT Samoin, which has laid off 1,200 employees. Next, PT Starlink, the layoff over 500 workers.
If we see the common thread to these problems, job losses also indirectly caused by the behavior of the workers themselves. The rise of worker’s demonstrations in Indonesia harm the investment climate for investors reluctant to invest in Indonesia. In the end it will inflict financial loss that make many labor lay off. Anarchist demonstration causes Indonesian Economic sluggish.
Government is not anti towards demonstration, but it have to be treated in a polite way. In conveying aspirations, it is not always done by demonstration, but there is are various communicative ways, such as hearings. For example, business climate in Bandung district, West Java, until the first quarter of 2015, the Government of Bandung district successfully gain 6 trillion Rupiah infestation in various sectors of industries. The key to stabilize investment climate in their region is to reduce relation polemic between labor and companies.
Besides that, labor demands wage increase which takes place every year is also at the root of the problem of thousands of factories being moved from one area to another, even to other countries. Because, if their demands asking for a wage increase of local government obeyed, but the impact on employers who object to raise wages by reason of companies going bankrupt. Uncertainties related to wage causes employers to worry because if it had to bear the weight of UMK are always changing every year. For example, as a result of demand for wage increases, making 20 the company went to another area with the lower UMK.
Therefore, let us think wisely. Do not just join in the demo that only aggravate the investment climate in Indonesia. All labor issues can be resolved in a good way, not always with the threat of demonstrations and strikes. Demonstration is labor rights, but do not anarchists, not sweeping, and do not forbid to work. This is what makes investors scared and fled. [NT]
*) CIDISS Contributor