Pertamina to evaluate decree on workers<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid that he had instructed the state-owned oil and gas firm
\nPertamina to review a ministerial decree allowing oil and gas
\nfirms to hire temporary workers and keep them on the payroll
\nindefinitely.<\/p>\n
Purnomo said Monday that the results would become input for
\nthe basis on which the government would decide on whether to
\nrevoke or revise the decree.<\/p>\n
\"I have ordered Pertamina to study the decree,\" he told
\nreporters on the sidelines of a ceremony. Pertamina supervises
\noil and gas companies operating throughout the country.<\/p>\n
The decree in question is Decree No. 5\/1995, issued by the
\nMinistry of Manpower and Transmigration.<\/p>\n
Minister of Manpower and Transmigration Jacob Nuwa Wea said
\nearlier that he planned to rescind the decree and would consult
\nwith Purnomo on the move.<\/p>\n
The decree allows oil and gas companies to sign temporary
\nworkers on for a period of up to 20 years. But this contradicts a
\nmore general decree, Decree No. 2\/1993, which allows a company to
\nemploy temporary workers for two years and can extend the
\ncontract for another year at the very most.<\/p>\n
The plan was well greeted by labor unions, who said it would
\nhelp end unjust working conditions for temporary workers.<\/p>\n
But Purnomo also warned that the issue must be treated
\ncarefully, so as not to further damage the investment climate in
\nthe country.<\/p>\n
\"We primarily don't wish to hamper the country's ability to
\nattract foreign investment,\" he said.<\/p>\n
Oil and gas companies in Indonesia, which are mostly foreign
\nfirms, have invested between US$3 billion and $5 billion per year
\nover the course of the past few years.<\/p>\n
Purnomo said that there were several types of oil firms,
\nincluding those which operate in marginal fields and cannot
\nemploy workers on a long-term basis, due to the short life-span
\nof their operations.<\/p>\n
However, he added, some oil companies employ workers based on
\nlong-term contracts because they operate big oil fields.<\/p>\n
Pertamina and oil and gas firms have opposed this plan,
\narguing that such a policy would make them less efficient, and
\ncould lead to layoffs.<\/p>\n
Oil companies face a high risk of failure during the
\nexploration stage, which is marked by huge capital expenditures.<\/p>\n
To minimize costs, the companies thereby outsource some of
\ntheir labor needs.<\/p>\n
According to information made available by Pertamina, oil and
\ngas companies here employ about 17,700 permanent employees and
\n2,600 temporary workers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-evaluate-decree-on-workers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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