Reebok, Nike remain committed to RI despite protest<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
World giant athletic shoemakers Reebok International Ltd. and
\nNike Inc. said on Tuesday that they remained committed to
\nIndonesia despite contract terminations with a couple of local
\nshoe suppliers that have sparked labor protests.<\/p>\n
\"Reebok remains committed to production in Indonesia, as
\ndemonstrated by the 19,700 Indonesian workers that we continue to
\nemploy at three factories,\" Hugh Hamill, Reebok's vice president
\nof footwear manufacturing and development in the Far East, said
\nin a statement.<\/p>\n
He was referring to PT Tongyang, PT Dongjoe, PT Golden Adi
\nShoes, which produce some two million pairs of athletic shoes per
\nmonth.<\/p>\n
Hamill said that Indonesia would continue to represent
\nReebok's second largest global investment in footwear, with more
\nthan 25 percent of world output.<\/p>\n
He added that Reebok had also terminated contracts with
\nsuppliers in China and Vietnam.<\/p>\n
Earlier on Monday, more than 1,000 workers protested in
\nJakarta against the move by Reebok to terminate its contract with
\nPT Primarindo Asia Infrastructure, which had been supplying shoes
\nto the U.S. company.<\/p>\n
Reebok terminated the contract with the West Java-based
\nPrimarindo in March \"to maintain business efficiency\". The
\nprotesters, who have taken to the streets several times to
\nprotest the decision, claimed that this had left 5,400 workers
\nout of a job.<\/p>\n
A report quoting a Reebok official earlier said that the
\ntermination of the contract had nothing to with slower global
\ndemand.<\/p>\n
The Massachusetts-based Reebok was quoted by Reuters as saying
\nlast week that second quarter international sales fell 2 percent
\nto US$250 million from $256 million a year earlier. U.S. sales
\nrose to $334 million from $315.4 million.<\/p>\n
Nike Inc. has also announced it will terminate its contract
\nwith local supplier PT Doson Indonesia in November.<\/p>\n
\"The termination orders to Doson is a business decision. It is
\nnot related with the changes on the government policy, such as
\nlabor policy, or a disagreement with Doson,\" Jeff Dumont, Nike
\nInc. general manager, said in a statement made available to the
\nthis paper.<\/p>\n
He said that Nike had informed Doson about the plan in
\nFebruary, to give time for the latter to make adjustments.<\/p>\n
Experts previously warned that various uncertainties at home,
\nincluding labor and security problems, were sending foreign
\ninvestors away.<\/p>\n
But Dumont said Nike remain committed to Indonesia, pointing
\nout that Nike would continue ordering athletic shoes from nine
\nlocal suppliers employing some 60,000 workers.<\/p>\n
Doson workers are planning to demonstrate on Wednesday.<\/p>\n
Meanwhile, Anton J Supit, chairman of the Indonesian Footwear
\nAssociation (Aprisindo), expressed concern over labor protest,
\nsaying it would further discourage foreign investors from coming
\nto the country.<\/p>\n
\"We have to realize that the termination of a contract is a
\nnormal business practice.<\/p>\n
\"The most important thing now is that we create a conducive
\nclimate so as to invite more foreign investors to Indonesia,\"
\nAnton said.<\/p>",
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