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Government vows to protect businesses from anarchic rallies

Jakarta Post - November 5, 2015

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Fadli, Batam – In an attempt to maintain a positive environment for business, the government has pledged to guarantee the safety of foreign investment companies by providing proper security measures that will anticipate any violent labor strikes.

Speaking to reporters after a closed-door meeting with investors in Batam, Riau Islands, Investment Coordinating Board (BKPM) head Franky Sibarani said the security guarantee was vital to ease investor anxieties.

Investors have been complaining of late about anarchic strikes taking place in the country's major industrial cities, including Batam.

"The government is currently responding to [violent labor strikes] more sternly. [Providing] a security guarantee for investors is a must," he said.

Franky also said that the newly issued Government Regulation (PP) No. 78/2015 concerning wages would also help ease tensions between employers and labor regarding the annual minimum wage adjustment, which usually ended in the latter arranging massive and violent strikes. "The regulation will give assurances to both employers and labor," he said.

Last week, President Joko "Jokowi" Widodo signed the regulation, which takes effect immediately, after being postponed for around 12 years. The regulation stipulates a measured annual wage increase that takes into account the current fiscal year's inflation and gross domestic product (GDP) growth rates.

Indonesian Employers Association's (Apindo) Batam chapter head Oka Simatupang, who also attended Wednesday's meeting, applauded the government's commitment to security for local companies.

"Labor strikes in Batam has been at threatening [levels]. Investors need a security guarantee [from the government]," he said.

PT Batamindo Investment Cakrawala general manager Mook Soi Wah shared a similar view. "We hope that the new government regulation on wages can be implemented soon to give investors more certainty," he said.

During a visit to Batam in June, President Jokowi ordered the National Intelligence Agency (BIN) to investigate alleged foreign involvement in labor rallies in Batam that led to investors leaving the Batam Industrial Zone.

Allegations of foreign support for workers have been made by the government following a massive and chaotic rally in 2011 involving at least 10,000 workers on the island. At least six were injured, including one person who was shot.

Three cars were severely damaged during the rally. The rally was staged to demand an increase in the minimum wage.

In November 2013, another massive labor strike took place in Batam, paralyzing many foreign investment companies as union members conducted door-to-door sweeps throughout 26 industrial areas.

Source: http://www.thejakartapost.com/news/2015/11/05/govt-vows-protect-businesses-anarchic-rallies.html.