Japanese Investors Complain About Manpower Law
Wednesday, 26 July, 2006 | 18:20 WIB
TEMPO Interactive, Jakarta: Japanese investors consider that manpower policies in Indonesia are not fair.
It is expected that this will to lower the potential of Japanese investment in Indonesia in the future.
The unfair policies, according to Yoshihiro Kobi, Head of the Jakarta Japan Club, include Article 158 of the State Decree No.13/2003 on Manpower.
This stipulates the provision of separation pay for workers who have made mistakes and been dismissed.
“This system is not fair. How can one who makes mistakes be entitled to receive high separation pay? And recently, there is proof of deliberate blunders in order to obtain separation pay,” said Kobi in Jakarta yesterday (25/7).
According to him, this policy reduces the interest of Japan's investors to invest.
This is in spite of the fact that Japan regards Indonesia as a good place for investment.
“This is proved that out of the 110 Japanese companies in the industrial estate that I manage, only two have closed down,” Kobi said.
In the 2004 report of the Japan Bank for International Corporation regarding projected foreign investment in several countries, Indonesia was ranked seventh out of prospective countries for Japan's investors.
From 2000 to 2002, Indonesia was in fourth place.
Mochamad Nadjib, Deputy of the Investment Climate Development Sector at the Investment Coordinating Board (BKPM), confirmed Kobi's statement.
According to him, the manpower issue is significant enough to influence investment interest.
“The Singapore Economic Board has complained about productivity not being in line with wage policies. They object that regional minimum wages (UMR) keep increasing but productivity does not,” he said.
Sjukur Sarto, Head of All-Indonesia Confederation of Labor Unions (KSPSI), disagreed that manpower is the issue that most impedes investment.
According to him, overlapping policies and dissenting interests inside the government are the real causes.
“Vertically and horizontally,” said Sjukur.