Deadline set for MOU with Malaysia

Deadline set for MOU with Malaysia

Kurniawan Hari and Ridwan Max Sijabat, The Jakarta Post, Jakarta

The government has set March 2004 as the deadline for signing a
memorandum of understanding (MOU) with Malaysia on labor in the
formal sector; otherwise, Indonesia would suspend its labor
supply to the neighboring country.

The MOU won full support from the House of Representatives
Commission VII on labor and social affairs at a hearing on
Wednesday.

Labor exporters have voiced their opposition to the draft
agreement, which they said did not provide necessary protection
for Indonesian workers employed in Malaysia.

Minister of Manpower and Transmigration Jacob Nuwa Wea said
the government would halt its labor supply for the time being,
since Malaysia seemed less serious about signing the long-awaited
bilateral agreement.

Nuwa Wea said the government was confused by the Malaysian
government's apparent move to buy time, since the final draft had
already been accepted by a joint team and disseminated to
relevant authorities.

Separately, Minister of Foreign Affairs Hassan Wirayuda
assented on Wednesday that the draft agreement did not include
necessary provisions on workers' rights and legal protection
during their employment abroad.

"The MOU also does not regulate training programs before
workers are sent to their employers," he said at a hearing with
House Commission I on defense and foreign affairs.

Despite the flaws, the draft ensures that employers are fully
responsible for returning workers to Indonesia if the employers
breach the contract of work.

Hassan said the MOU would be signed after Malaysia's human
resources ministry settled administrative procedures on its end.

The Association of Labor Export Companies (Apjati) opposed the
draft, which did not cover industrial relations and labor
protection.

Apjati deputy chairman Anthon Sihombing said the MOU would be
effective in preventing Indonesian workers from migrating and
working illegally in Malaysia, but it did not provide legal
protection for workers.

"All Indonesian workers recruited under the new agreement will
be provided basic wages during their five-year contract, although
many workers meet the high level of skill and work experience of
that country," he said.

He said Malaysia, like Hong Kong, should set the minimum wage
and give assurances that industrial relations policies will be
effective in providing legal certainty for Indonesian workers.

"Many Indonesian workers are happy to work in Hong Kong,
because they are employed under industrial relations policies
that also cover local workers," he said, adding that the
government should also include insurance schemes in labor
contracts with Malaysian employers.

Anthon said that if Malaysia was committed to providing fair
and humane labor terms and conditions, it should treat Indonesian
workers the same as Malaysian workers.

In regards legal and immigration issues, Nuwa Wea commented:
"First of all, Indonesia cannot interfere in Malaysia's internal
affairs and therefore, our workers must comply with Malaysian law
during their employment. Secondly, the MOU is aimed at preventing
workers from illegally entering Malaysia, and Malaysian employers
from recruiting directly from Indonesia."