Govt to address problems faced by textile companies<\/p>\n
JAKARTA (JP): The government has agreed to look into
\ncomplaints raised by textile and garment companies that its wage
\npolicy could mean disaster for the country's main export
\nindustry.<\/p>\n
Leaders of the Association of Indonesian Textile Industries,
\nled by Secretary-General Benny Sutrisno and chairman of its
\nJakarta chapter Haryadi Sukamdani, visited the Ministry of
\nManpower yesterday to discuss the problems with Suwarto, the
\nDirector General for Industrial Relations and Labor Standards.<\/p>\n
Their presence was an unusual sight in the ministry more
\naccustomed to visits by complaining workers.<\/p>\n
Suwarto told The Jakarta Post after the meeting that his
\nministry will soon establish a team including representatives of
\nemployers, workers and the government to discuss the issue.<\/p>\n
The government will also consult university experts.<\/p>\n
The team would look into why textile and garment companies
\nhave problems meeting the government's wage regulations and
\nhopefully come up with some solutions, he said.<\/p>\n
He stressed, however, that the government would not sacrifice
\nthe interests of the workers. \"They (the companies) must also
\nunderstand the condition of the workers,\" he said.<\/p>\n
Employers have voiced their objection to the 10 percent daily
\nminimum wage hike set by the government, effective next month,
\nand also to a ruling issued in January compelling them to pay
\nworkers hired on a daily basis a salary based on 30 days of work.<\/p>\n
Garments and textiles make up Indonesia's number one export
\nindustry outside of the oil and gas sector, but its role has been
\ndeclining in the last three years. In 1995, the industry earned
\nIndonesia US$5.4 billion in foreign exchange revenues, down from
\n$5.8 billion in 1994 and $6.2 billion in 1993, according to
\nofficial statistics.<\/p>\n
Industry analysts warn that Indonesia is losing out to
\nnewcomers in the world markets, such as China and Vietnam, and
\nthat wage increases at home are eating away at the country's
\ncompetitive edge.<\/p>\n
Benny Soetrisno of the textile association argues that such
\nlabor-intensive industries are very sensitive to wage policy
\nchanges.<\/p>\n
He said the changes in government policy are compounding the
\nproblems faced by his members, who are struggling in the face of
\nfierce international competition.<\/p>\n
The government in January announced that it is hiking the
\nminimum wages in all 27 provinces by an average of 10 percent
\neffective April 1. The daily minimum wage in Jakarta will be
\nincreased to Rp 5,200 from Rp 4,600.<\/p>\n
Soewarto said that so far the Ministry of Manpower has not
\nreceived any formal requests from textile and garment
\nmanufacturers to be exempted from the wage changes, a concession
\nsometimes granted to companies experiencing financial
\ndifficulties. (rms\/03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-address-problems-faced-by-textile-companies-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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