Labor conflicts turn away foreign investors: Rini<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
Minister of Industry and Trade Rini Soewandi said on Friday that
\nmany foreign manufacturers had shut down or relocated their
\nbusinesses here to other countries due to lingering labor
\nconflicts and a high cost economy resulting from illegal fees.<\/p>\n
Rini said there had been fears that labor conflicts could
\ndisrupt the delivery of goods for the export market.<\/p>\n
Foreign manufacturers are mainly export-oriented companies,
\nwhich must assure their buyers that they can meet delivery
\ntargets.<\/p>\n
\"Illegal fees are also a problem ... We must resolve all
\nthese problems,\" she was quoted by detik.com as saying during a
\nvisit to a textile company in Sukoharjo, Central Java.<\/p>\n
Rini also acknowledged, however, that the global economic
\nslowdown was also a factor that caused the companies to shut down
\ntheir operations because of weaker demand.<\/p>\n
As an example, she pointed out how U.S. giant shoemaker Nike
\nhad cut down its orders from a local factory.<\/p>\n
The Korean Chamber of Commerce (KOCHAM) warned earlier that
\nmore South Korean manufacturers operating here would shut down
\ntheir operations or relocate to Vietnam or Myanmar, which have
\nbetter investment climates, if the government of Indonesia failed
\nto quickly address the various problems hurting their businesses.<\/p>\n
KOCHAM said that some 36 companies had either shut down or
\nrelocated their operations during the past year, leaving some
\n32,000 workers jobless. More companies are preparing to pull out
\nof Indonesia. Among the reasons stated for the mass exodus were
\nunfavorable labor policies, an irrational increase in labor
\nwages, labor strikes, low productivity and poor law enforcement.<\/p>\n
The warning is expected to serve as a wake-up call for the
\ngovernment to immediately take measures to improve the investment
\nclimate here. This is vital particularly because foreign
\ninvestment is badly needed to help push economic growth so that
\njobs can be created for the huge number of people who are
\nunemployed, which according to one estimate reaches a staggering
\n40 million.<\/p>\n
Chairman of the National Economic Recovery Committee (KPEN)
\nSofjan Wanandi said that the issue of the exodus of foreign
\nmanufacturers from the country was at the top of the agenda of
\nthe new crisis center.<\/p>\n
Sofjan helped set up the crisis center, an agency led by Rini
\nto help resolve various problems faced by businesses here.<\/p>\n
He said that the center would soon arrange a round-table
\nmeeting comprising foreign investors, labor unions and government
\nofficials to help address the problem of labor conflicts and
\nother labor-related issues.<\/p>\n
\"The meeting will be held within the next few days,\" he said.<\/p>\n
According to Sofjan, the second priority of the crisis center
\nwas to address security problems faced by businesses, including
\nextortion by local thugs.<\/p>\n
Djimanto, an executive at the Indonesian Businessmen's
\nAssociation, said that rampant labor protests and illegal fees
\nhad created serious difficulties for local manufacturing firms.<\/p>\n
He said that labor protests had not only threatened the timely
\ndelivery of goods but was also affecting worker productivity.<\/p>\n
\"Not only the delivery time, but labor protests have also
\nreduced the productivity of workers,\" said Djimanto.<\/p>\n
But chairwoman of the National Front for the Struggle of
\nIndonesian Workers (FNPBI), Dita Indah Sari, dismissed the
\nsuggestion that labor protests had caused foreign investors to
\nabandon the country.<\/p>\n
She said the exodus of foreign manufacturing firms was mainly
\ndue to the global economic slowdown as foreign buyers had been
\ncutting down import orders from Indonesia.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/labor-conflicts-turn-away-foreign-investors-rini-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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