S. Korea complains about RI wage hike<\/p>\n
Anastasya Emmanuelle and Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Korean businesses operating in Indonesia have expressed concern
\nover various labor issues, in particular the recent rise of the
\nminimum wage, according to Minister of Industry and Trade Rini M.
\nSoewandi.<\/p>\n
"They stressed the rise in minimum wages, which they consider
\nto have risen too quickly and too high," Rini told reporters,
\nafter opening the sixth trade ministerial meeting between South
\nKorea and Indonesia on Monday.<\/p>\n
According to Rini, the sudden rise in the minimum wage had
\nposed difficulties for Korean companies operating here.<\/p>\n
"What they want in the future is for the government to tell
\nthem before such legislation is enacted so that they can
\nadequately prepare for it," she said.<\/p>\n
The meeting was attended by visiting South Korean Minister of
\nTrade Hwang Doo-yun, who is leading a South Korean trade
\ndelegation.<\/p>\n
The government raised the minimum labor wage by up to 30
\npercent earlier this year, which sparked protest from some
\nbusinesses already suffering from years of economic hardship at
\nhome and a shrinking overseas market.<\/p>\n
Currently, there are around 700 Korean companies operating in
\nthe country, mostly in textile, footwear and toys which rely
\nheavily on Indonesia's abundant supply of cheap labor.<\/p>\n
Another highlight in the meeting was the possibility of South
\nKorea increasing the amount of liquefied natural gas (LNG)
\nimported from Indonesia.<\/p>\n
"(South) Korea might increase the amount of LNG they import
\nfrom us" Rini said, without giving details.<\/p>\n
Hwang also stressed the important role of Indonesia in
\nsupplying LNG to his country.<\/p>\n
"Indonesia has been a stable supplier of oil and gas to
\nKorea,.. so we would like to continue this established
\nrelationship," Hwang stated.<\/p>\n
Indonesia has been facing tough times in marketing LNG to
\nSouth Korea, as it has to compete with other LNG suppliers such
\nas Oman, Malaysia, Brunei and Qatar.<\/p>\n
After Japan, South Korea is the second largest consumer of LNG
\nfrom Indonesia. In 2001, South Korea's demand was estimated at
\n16.2 million tons, a rise from 14.2 million tons the previous
\nyear.<\/p>\n
Around 32 percent of the demand, or 5.4 million tons, was
\nimported from Indonesia.<\/p>\n
Hwang further indicated that South Korea would explore the
\npossibility of cooperation in nuclear power.<\/p>\n
Apart from cooperation in energy, Hwang said that in a Monday
\nmeeting with President Megawati Soekarnoputri, South Korea was
\nasked to allocate more investment in the eastern region of
\nIndonesia.<\/p>\n
"It is a very good message for the Korean business community
\nto explore business opportunities in Indonesia," Hwang said.<\/p>\n
Without giving details, Hwang said that South Korean
\nbusinesses intended to expand investment in Indonesia from the
\ncurrent total of US$11.7 billion in more than 1,350 projects.<\/p>\n
The trade ministerial meeting also discussed various other
\ntrade issues including tax, financing facilities and visa
\nrequirements.<\/p>\n
Based on data from the Ministry of Industry and Trade, the
\ntrade volume between the two countries from January to September
\n2001 reached US$4.6 billion, a 3.8 percent increase over the same
\nperiod last year.<\/p>\n
Other topics discussed by both ministers included efforts to
\nstrengthen small and medium-sized enterprises and trade
\ninformation.<\/p>",
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"sponsor": "Okusi Associates",
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