Foreign investors flee, thousands workers suffer

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

Thousands of workers from eight textile and textile-products factories in Greater Jakarta have been left without jobs and payment after their foreign employers abruptly stopped operations and fled the country in the first half of this year.

In a media conference held Monday by the Jakarta Legal Aid Institution (LBH Jakarta), several workers unions representing the factory workers condemned the government for its failure to protect workers and monitor foreign investors.

Setyono, chairman of the Jakarta-Bogor-Tangerang-Bekasi Workers Union (SBJ), pointed to the lack of transparency in investment procedures for foreign businessmen in Indonesia as the root of the problem.

Setyono accused the government of placing importance on foreign investments as economic indicators, while sacrificing the welfare of workers.

"Foreign investors can come here with nothing because they can rent facilities and machinery, taking advantage of attractive offers from the government such as low taxes, and then abandon everything after raking in profits."

B. Lucky Rosshinta of the LBH Jakarta division for workers' affairs added that there were suspicions of a conspiracy to avoid paying the Idul Fitri/Christmas and New Year's holiday bonuses (THR), which must be disbursed by year's end.

Another theory, she said, was that the employers are planning to take advantage of the government's intention to legalize subcontract workers as stipulated in the labor bill.

"More and more workers came to us with complaints on their factories' plans to halt or relocate operations. We suspect the foreign investors abandoned these factories but will come back next year to open businesses at other locations.

"They would then recruit subcontract workers in an attempt to reduce costs, because they will not be obligated to provide insurance or other benefits as is the case with permanent workers," Lucky explained.

Six of the factories in question are PT Global, PT Metro, PT Tongkyung Makmur Abadi, PT Indolim, PT Jaya Toys Rekatama and PT Kawan Kita Sejahtera, which were all operated by Korean investors with no Indonesian partners. The remaining two are: PT Kanisatex, located in Cileungsi, Bogor, and owned by Japanese and Indonesian co-investors; and PT Trenton Garment Indonesia, owned by investors from China and Hong Kong.

The workers filed complaints with the police and at the office of manpower affairs, but in vain.

"The workers also issued complaints to the Korean Embassy since the investors were already known in the country, but embassy officials said nothing could be done because no criminal offenses had been committed in Indonesia," Lucky said.

The media conference was also attended by the Forum for Workers Union of Textiles, Clothes and Leather Products (FSP- TSK), the Indonesian Workers Union of Garments, Textiles, Leather and Footwear (SBSI Garteks), and the Union of Indonesian Muslim Workers (Gaspermindo).