Wed, 03 Nov 1999

Bomer vows to tackle unemployment

JAKARTA (JP): Shrugging off criticisms over his appointment, new Minister of Manpower Bomer Pasaribu has pledged to set up good industrial relations and step up labor exports in an effort to help reduce unemployment in the country.

"Unemployment is a serious problem that needs an urgent solution not only from the government but also from the business sector and non-governmental organizations," he said during a hand-over ceremony at the ministry.

Bomer officially took over on Tuesday at the ministry from Fahmi Idris.

Also attending the ceremony were former manpower ministers Harun Zain, Awaluddin Djamin, Theo Sambuaga, Abdul Latief and Fahmi.

Statistics on the number of people fully unemployed in the country vary. According to the Manpower Ministry, unemployment affects about 25 million Indonesians. But the Federation of All Indonesian Workers Union (FSPSI) puts the figure at about 40 million.

Bomer said hundreds of thousands of university graduates and dropouts could not be absorbed by the labor market due to the economic crisis that hit the country over the last two years. He also said that due to the crisis, millions of workers had been dismissed following the closure of hundreds of companies.

"Unemployment has serious implications for political conditions at home if immediate concrete steps are not taken," he warned.

He said that as well as extending labor-intensive projects under the social safety net program, the government would help develop small-scale companies to absorb the dismissed workers and accelerate labor exports.

He said that in order to create harmonious industrial relations, the government would adhere to International Labor Organization (ILO) conventions on workers' rights in developing labor programs.

Asked about criticism surrounding his appointment as manpower minister, Bomer said his critics had a right to air their opinion, but that he would still do his best for the country's workers.

Bomer, who still chairs FSPSI, has been widely criticized for his record in the field of workers' rights.

He previously served as secretary-general of the formerly government-backed All Indonesian Workers' Union (SPSI) and as a member of a board representing workers in the state-owned PT Jamsostek, which runs social security programs for workers.

Criticism

Labor activists and the Indonesian Corruption Watch (ICW) have opposed Bomer's appointment to the ministry because of his alleged involvement in the purchase of the FSPSI building in Pasar Minggu, South Jakarta. They also cite his involvement in the deliberation of the controversial 1997 Labor Law and the investment of PT Jamsostek funds in troubled financial institutions and companies.

Several FSPSI deputy chairmen, who all requested anonymity, expressed disapproval over Bomer's appointment to his new position.

"We can't understand how President Abdurrahman Wahid dare appoint Bomer, who it is widely alleged, was involved in the embezzlement of foreign funds for Indonesian workers," one of the FSPSI deputy chairmen said.

Indonesian Prosperous Labor Union (SBSI) chairman Muchtar Pakpahan said Bomer's appointment sparked controversy because he did not have the wide support of workers and was closely linked to former president Soeharto's repressive regime.

"He has never worked for the workers. He along with other politicians was dropped by the Golkar Party into SPSI merely to seek labor support for the party in the past," Muchtar said.

"So, he did a lot in the past for his political interests but not for workers," he said.

Muchtar claimed that Bomer was also responsible for pressing a court to hand down a death sentence for his involvement in violent labor rallies in North Sumatra in 1997.

Muchtar was found guilty of allegedly inciting the week-long violent rallies and served two years in Tanjung Gusta prison in Medan. Protesters at the rallies demanded the former New Order government raise the monthly minimum wages by 70 percent and allow workers the right to organize themselves freely.

ICW coordinator Teten Masduki accused Bomer of involvement in the marked-up purchase of the FSPSI building, the deliberation of the 1997 Labor Law and the reinvestment of Jamsostek funds in troubled companies.

"Bomer was involved in the purchase of the FSPSI building, the price of which was marked up to Rp 4.6 billion from Rp 1.6 billion. He also failed to control the allocation of Rp 7.1 billion from Jamsostek to finance the law's deliberation," he said during a seminar on Jamsostek.

Teten said that as a member of Jamsostek's board of commissioners from 1994 to 1999, Bomer was involved in the deliberation of the controversial Labor Law.

Teten urged new Attorney General Marzuki Darusman to conduct a thorough investigation into allegations of rampant corruption in Jamsostek. He also urged Marzuki to prosecute a number of former government officials, including ministers, as well as former Jamsostek officials allegedly involved in the corruption cases.

"The Attorney General's Office should resume the investigation which has been halted for unclear reasons," he said.

Denial

Jamsostek president Ackmal Husin denied Bomer's involvement in any misuse of funds in the state-owned company, and said that the company was ready to face any law suits in court.

"Of course, Bomer had a position as a member of Jamsostek's executive board from 1994 through 1999, and is still the FSPSI chairman, but it was not a decisive position in the company and he was not involved in the alleged corruption," he said on Tuesday.

He said that if ICW had convincing evidence about the alleged corruption and Bomer's alleged involvement, then the organization should file a law suit against Jamsostek and Bomer.

"We have no objections to sensational news as long as they have legal evidence. If ICW holds valid evidence in its hands, it should bring the case to court. We are ready to face it."

Ackmal said the company had collected about Rp 10 trillion while running the social security programs for workers and that the labor funds were secure.

He warned ICW against using the unfounded corruption allegations to further its own political interests, saying such issues could cause a total of 15 million workers to become restless.

"It is not fair for ICW to use rumors about corruption in the state-owned company for its political interests. They may dislike Bomer but they should not use baseless rumors to sow hatred against the new minister," he said. (rms)