ANCHAM optimistic Jakarta will retain GSP facility

JAKARTA (JP): The American Chamber of Commerce (AMCHAM) expressed optimism yesterday that Washington will not scrap its trade facilities for Indonesia under the generalized system of preference (GSP), due to the significant improvement in labor conditions here.

"Yes, we are very optimistic that the U.S. government will continue giving Indonesia the GSP trade benefits because of the improved labor condition," local AMCHAM President Louis A. Clinton told The Jakarta Post before meeting with Minister of Manpower Abdul Latief.

He said his organization had noted significant progress in labor developments in the country over the last two years.

Last year, Washington threatened to suspend the trade benefits for Indonesia, saying that it had poor labor conditions and denied labor rights.

The American government offers the GSP facilities to developing countries it thinks has good labor records.

The U.S. administration is reviewing the GSP facilities for Indonesia and is expected to announce its decision whether to extend them in the near future. It has sent delegations of U.S. Trade Representatives twice, in January and August, to observe labor conditions.

Last year Indonesia gained around US$640 million from its goods exported to the United States under the GSP. A part of the trade benefits went to American companies operating in Indonesia.

The government has repeatedly insisted that regardless of the GSP threat, the labor conditions in the country will continue to improve.

Professional

In yesterday's meeting, several American businessmen presented the minister a book on job searches, labor law and American companies in Indonesia.

Clinton said the book Returning To Indonesia was aimed for Indonesians studying in the United States to be used as a guide if they want to pursue, upon their arrival at home, their career in American companies in Indonesia.

"The publication of the book is aimed at promoting a favorable business climate for American companies and assisting the human resource development," he said.

The book also contains a profile of 59 major American companies offering managerial positions for American-educated Indonesians to replace expatriates.

Minister Abdul Latief said American companies in the country had helped improve the welfare of Indonesian workers and create professional managers.

"All American companies in Indonesia have complied with the labor law and implemented the Pancasila industrial relations concept," he said. "They have all signed collective labor agreements with their workers and allow their employees to organize."

He said many Indonesian managers and businessmen came from the American companies. "They were trained both at home and overseas."

Clinton, also president of the gold mining company Freeport- McMoran Pacific Inc., said his company which is operating in Irian Jaya has employed 15,000 local people. It also sends around 25 employees to take Master of Business Administration degrees in the United States annually.

"Workers at all levels must have been trained," he said.

There are around 400 American companies and joint ventures in the country. Among them are PT Freeport Indonesia, the oil mining company PT Caltex Indonesia, Bank of America, American Express Bank, Hilton International Hotel and Sahid Jaya Hotel. (rms)