Govt in tug-of-war with labor exporters<\/p>\n
JAKARTA (JP): As the controversy over the minimum capital for
\nlabor exporters rolls on, the director general for labor
\nplacement, Din Syamsuddin, asked on Tuesday that labor export
\nfirms incapable of complying with the rule to stop operating.<\/p>\n
Din said the labor export sector required strong capital to
\nenable it to go international and expand its market to numerous
\ncountries.<\/p>\n
\"Labor exporters with small capital should not take part in
\nlabor export activities. They should do their businesses in other
\nsectors in line with their financial capabilities,\" he said.<\/p>\n
The Manpower Ministry issued in September last year a
\nministerial decree requiring a labor export company to place at
\nleast Rp 1 billion in capital comprising assets worth Rp 750
\nmillion, along with a Rp 250 billion bank deposit.<\/p>\n
It set a June 1 deadline for companies to meet the new equity
\nratio.<\/p>\n
The previous ruling issued in 1998 set the minimum asset at Rp
\n300 million and the minimum bank deposit at Rp 75 million.<\/p>\n
The bank deposit, placed under the name of the manpower
\nminister, is compulsory in order to cover protection guarantees
\nfor workers and serve as a stand-by fund to help workers in need
\nabroad.<\/p>\n
\"It will be very difficult for small- and medium-scale
\ncompanies to participate in the labor business because it needs
\nstrong capital to make it more professional and credible,\" Din
\nsaid.<\/p>\n
He acknowledged that the decree was issued for the purpose of
\ncutting down the number of labor-supplying companies which has
\nnow reached a staggering 450, while also hoping to improve legal
\nprotection for migrant workers, too.<\/p>\n
\"It is impossible for small companies to provide legal
\nprotection for workers or to hire foreign lawyers to provide
\nlegal aid for workers in need,\" he said.<\/p>\n
Many small companies have used their bigger counterparts in
\nexporting workers because of financial concerns.<\/p>\n
\"As a consequence of this, many workers they send get in hot
\nwater because they don't undergo proper training beforehand,\" he
\nsaid.<\/p>\n
Unfair<\/p>\n
More than half of the 421 firms under the auspices of the
\nIndonesian Labor Exporters Association (Apjati) have repeatedly
\ncriticized the new ruling.<\/p>\n
Enraged, they demanded that Din and Minister of Manpower Bomer
\nPasaribu step down.<\/p>\n
The companies have complained they would be unable to meet the
\nset deadline.<\/p>\n
They also claimed the government did not involve Apjati in
\ndrawing up the decree.<\/p>\n
\"It is very strange that the government has made a new
\nregulation without prior discussion with us,\" Apjati chairman
\nAbdullah Umar said.<\/p>\n
He added that Din had issued numerous rulings unilaterally,
\nwhich eventually sparked much criticism.<\/p>\n
He said the government was considered unfair and would enforce
\nthe decree to all labor exporters.<\/p>\n
\"The government should be wise in enforcing the decree because
\nthe companies cannot be treated equally,\" he said.<\/p>\n
He also suggested that the government offer a long grace
\nperiod to the labor exporters, which they will undoubtedly need,
\nin order to adjust to the new requirement.<\/p>\n
\"It is not fair to allow only three weeks for the exporters to
\nrenew their licenses as stipulated in the new decree,\" he said.<\/p>\n
Abdullah said the government's reason -- to enact the decree
\nto improve protection for workers -- was baseless.<\/p>\n
\"If the government wants to improve protection for workers, it
\nshould revamp the insurance program for workers and improve
\nbilateral cooperation with foreign countries where Indonesian
\nworkers are employed,\" he said.<\/p>\n
He stated that thousands of workers who have gone abroad since
\nMarch have been abandoned because all nine insurance consortia
\nappointed to represent them were suspended due to the absence of
\nliaison officers overseas.<\/p>\n
\"If the government is consistent with the law, all workers
\nshould participate in the social security program (Jamsostek) to
\nprovide basic protection for workers. The commercial insurance
\nrun by the nine consortia is not mandatory,\" he said.<\/p>\n
Abdullah called on the government to draw up a new bill on
\nlabor export -- instead of decrees -- to give legal certainty
\nboth to workers and labor exporters.<\/p>\n
He also said the government should revive all training centers
\nand establish new ones in which to train workers as is stipulated
\nin the constitution.<\/p>\n
\"The government is obliged to provide not only education but
\nalso vocational training for workers. Indonesia should promote
\nvocational training to catch up with other countries such as the
\nPhilippines, China and South Korea,\" he said.<\/p>\n
He acknowledged many workers have been sent without adequate
\ntraining, saying this has caused a decrease in demand for
\nIndonesian workers in foreign markets. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-in-tug-of-war-with-labor-exporters-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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