ANCHAM optimistic Jakarta will retain GSP facility

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)