Foreign investors flee, thousands workers suffer

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).