'Industrialists remiss on workers' welfare'<\/p>\n
JAKARTA (JP): Minister of Manpower Abdul Latief lashed out at
\nIndonesian industrialists yesterday, saying that most of them
\nonly emphasize the profit aspects of their companies but neglect
\nthe welfare of their workers.<\/p>\n
Addressing a seminar held by the National Council on Wages, at
\nthe Borobudur Hotel, the minister said the government's
\nregulation on minimum wages is designed to protect workers'
\nwelfare.<\/p>\n
\"So far, most Indonesian industrialist are just like traders,
\nwho do not pay much attention to the development of human
\nresources,\" Latief said, adding that such an attitude did not
\nreflect the true role of professional industrialists.<\/p>\n
He also pointed out the importance of workers' welfare, which,
\nhe said, \"is one of the main factors supporting a company's
\nproductivity,\" and that good workers are like an asset of the
\ncompany.<\/p>\n
He said that, in the present era of global changes, low wage
\nlevels are no longer regarded as a comparative advantage.<\/p>\n
\"Only when the workers feel secure for their welfare and get
\nreasonable pay can they do a good job, which yield to higher
\nproductivity,\" he said, adding that low wages might hamper the
\nworkers' creativity and efficiency.<\/p>\n
Latief, a successful businessman, who built the Sarinah Jaya
\nempire, recruited by President Soeharto into the cabinet, also
\ndismissed the arguments often put forward by his former
\ncolleagues that wage increases should be linked to productivity.<\/p>\n
He argued that companies should first ensure that their
\nworkers' welfare is well taken care of before discussing any link
\nbetween wages and productivity.<\/p>\n
Stressing that labor issues can be manipulated politically, he
\nsaid that his ministry has always wanted to settle the issue
\nstrategically and conceptually.<\/p>\n
Yesterday's seminar was attended by about 200 participants,
\nwho represented various business companies and government
\ninstitutions.<\/p>\n
Another keynote speaker at yesterday's meeting was the
\ndirector general of taxes, Fuad Bawazier.<\/p>\n
Bawazier said that the government taxation system is designed
\nto support the development of human resources by improving
\ntechnical skills and know-how.<\/p>\n
He cited, as an example, that the money collected from income
\ntaxes is used partly to finance the training of workers, to
\nprovide them with scholarships, as well as to conduct research
\nand development activities, all of which are for the workers' own
\nbenefit.<\/p>\n
He said that income taxes should not be a burden to workers,
\nbecause the government has introduced a policy to exempt them,
\nespecially the low-income workers, from paying taxes.<\/p>\n
Those workers with small incomes, but who have big families to
\nsupport, are exempted from paying tax.<\/p>\n
Currently, the government applies tax exemption for workers
\nwith a spouse, three children, and yearly income of Rp 5,184,000
\n($2,305). (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/industrialists-remiss-on-workers-welfare-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}