Manpower minister must prove skeptics wrong<\/p>\n
Ridwan Max Sijabat, Jakarta<\/p>\n
Newly appointed Minister of Manpower and Transmigration Fahmi
\nIdris should not necessarily wait for the National Planning Board
\n(Bappenas) to draw up the tasks for his first 100 days in office
\nor to design long-term programs over the next five years, because
\na number of urgent labor issues await his immediate attention.<\/p>\n
What must he do to administer shock therapy? It is enough for
\nhim to take action against the illicit smuggling rings involved
\nin the women and children trafficking and against those
\nunauthorized companies supplying workers overseas without
\nnecessary documents -- or, he could enforce a harsh law on labor
\nexport and protection.<\/p>\n
To convince workers and labor unions? He should ensure that
\nall Muslim workers receive the obligatory annual Ramadhan bonus
\nat least seven days before Idul Fitri and that minimum wages are
\nset according to basic human needs -- or Keperluan Hidup Layak
\n(KHL) -- as required by the new Labor Law.<\/p>\n
To win public support? He should take concrete measures to
\nenforce labor policies and regulations across all industries and
\neliminate the high-cost economy, one of the main reasons why
\nIndonesia is no longer attractive to foreign investors.<\/p>\n
However, many parties -- especially workers, labor unions and
\nnon-governmental organizations (NGOs) dealing with labor issues
\n-- foresee a dark cloud covering the labor sector over the next
\nfive years following the reappointment of Fahmi as manpower
\nminister as the successor to Jacob Nuwa Wea.<\/p>\n
Strong skepticism has emerged among workers, labor unions and
\nNGOs in the manner by which the members of President Susilo
\nBambang Yudhoyono's United Indonesia Cabinet were recruited and
\nin particular, in regards the new manpower minister's background
\nand track record.<\/p>\n
Their difficulty in accepting the professionalism of the new
\nCabinet and anticipating the changes it would make is
\nunderstandable, as political factions supporting Susilo's
\ncandidacy were locked in a tug-of-war to procure ministerial
\npositions in the new government. This behind-the-scenes wrangling
\nwas indicated by the mounting friction among stakeholders and the
\ndelayed announcement of the Cabinet lineup following Susilo's
\ninduction ceremony on Oct. 20.<\/p>\n
According to reliable sources close to Susilo, Fahmi yielded
\nand finally accepted the post of manpower minister after having
\nlobbied for and failed to secure an appointment as trade
\nminister.<\/p>\n
His lobbying was consistent with his background in business as
\na president of the Kodel Group but, at the same time, it raised a
\ndoubt among labor activists as to whether he was serious about
\nmaking changes in the labor sector.<\/p>\n
Many parties have seen Fahmi's appointment to Susilo's Cabinet
\nwithin the context of ouster from the Golkar Party. Fahmi and
\nseveral other fellow politicians had campaigned for Susilo-Jusuf
\nKalla in the Sept. 20 election runoff instead of the Megawati
\nSoekarnoputri-Hamzah Haz pair, which had the full backing of
\nGolkar and several other parties. Golkar thus dismissed Fahmi and
\nhis cohorts for their dissidence.<\/p>\n
Workers and labor activists became even more skeptical of
\nFahmi because he was seen to be responsible for the rampant
\nextortion of returning migrant workers at Soekarno-Hatta
\nInternational Airport and for the liberalization of the national
\ninsurance scheme for migrant workers.<\/p>\n
Fahmi, who was manpower minister from May 23, 1998, through
\nNovember 1999 in the Habibie administration, came under fire when
\nhe established Terminal 3 at the airport as a special lounge for
\nrepatriating migrant workers. The new terminal instead became a
\nfertile hunting ground for corrupt officials, agents and public
\ntransportation crew to extort the returning workers.<\/p>\n
Meanwhile, his policy to liberalize the workers' insurance
\nscheme implemented by state-owned PT Jamsostek and his idea to
\nend Jamsostek's monopoly in the social security sector have
\nsparked strong objections from workers and labor unions.<\/p>\n
Although many insurance companies have been appointed to
\nprovide insurance for overseas migrant workers, most have been
\nleft unprotected.<\/p>\n
Against this fact, about Rp 5 billion has been collected per
\nmonth from departing workers, but almost nothing has been paid in
\ncompensation to those who have experienced problems during either
\ntheir recruitment and training period or during their employment
\nabroad.<\/p>\n
Furthermore, Fahmi also introduced the privatization of
\nworkers' social security programs modeled on the in Chilean
\nsystem, but the controversial plan, which prompted resistance
\nfrom both employers and workers, disappeared from public view in
\n1999 during the transition to the Abdurrahman Wahid
\nadministration.<\/p>\n
If Fahmi has a strong commitment to progress and wants to
\nprove himself a professional, he must tackle several urgent and
\nchallenging issues in both the short- and long term.<\/p>\n
Fahmi should encourage employers, especially large investors,
\nto create industrial harmony in line with Law No. 13\/2003 by
\navoiding mass labor dismissals and at the very least, meeting the
\nminimum wage requirement.<\/p>\n
He should also annul the circular issued by Nuwa Wea to delay
\nsetting KHL-based minimum wages because of the prolonged economic
\ncrisis and instead establish standard parameters for setting
\nminimum wages in accordance with the law. Companies facing
\nfinancial difficulties after being audited by public accountants
\nshould be exempted from the new minimum wage rulings.<\/p>\n
For the long term, he should review all regulations considered
\nunfavorable to the interests of employers and workers.<\/p>\n
In addition, along with all stakeholders, Fahmi needs to clear
\nup all regulatory barriers that have made Indonesia unattractive
\nto foreign investors, including: free labor movement, illegal and
\nlegal fees, invisible costs, absence of legal certainty, security
\ndisturbances and damaged regional infrastructure.<\/p>\n
By eliminating these investment barriers, the government could
\nconvince the international community of an improved investment
\nclimate and lead the way toward the gradual resolution of the
\ncurrent 9.6-million strong unemployment.<\/p>\n
The author is a staff writer at The Jakarta Post, and can be
\nreached at ridwan@thejakartapost.com.<\/p>",
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