Government delays decision on workers

JAKARTA (JP): Following days of violent protests in many cities, the government has backed down, for now, postponing the implementation of the controversial ministerial labor decrees on compensation for workers leaving their place of employment.

Minister of Manpower and Transmigration Al-Hilal Hamdi said on Friday evening the implementation of decrees No. 78 and No. 111 had been postponed, and that Decree No. 150/2000, the earlier decree covering worker compensation, would come into effect for a month while a review was held.

The decision was made following a meeting chaired by Coordinating Minister for Political, Social and Security Affairs Agum Gumelar. The meeting came after days of labor protests against the two decrees had virtually paralyzed some cities.

The two decrees were issued by Al-Hilal in response to concerns from the business community over Decree No. 150/2000, which stipulated substantial payouts to workers who were dismissed or resigned.

The decree was issued by Al-Hilal's predecessor Bomer Pasaribu.

Over the next month, a tripartite forum comprising employers, trade unions and government representatives will deliberate the issue.

The two-hour meeting on Friday was also attended by Indonesian Military chief Adm. Widodo A.S. and National Intelligence Agency chief Lt. Gen. (ret) Arie J. Kumaat.

Representing the business community and labor unions at the meeting were, among others, National Business Development Council chairman Sofyan Wanandi, Association of Indonesian Automotive Industries chairman Subronto Laras, Indonesian Employers Association Djimanto and All-Indonesia Workers Union Federation chairman Jacob Nua Wea.

Indonesian Prosperity Trade Union chairman Muchtar Pakpahan was absent from the meeting.

Jacob said postponing the implementation of the two decrees was the best choice for now. But he could not hide his dissatisfaction that Agum was reluctant to discuss the decision with the public.

"Many workers are still awaiting the government's decision. Therefore I have asked Pak Agum to tell the public about it," Jacob said.

Decrees No. 78 and No. 111 were issued to replace decree No. 150, which required employers to provide severance pay and a merit of service payment to workers leaving their place of employment, even if they were dismissed.

Under decree No. 150, workers are entitled to receive severance pay of 100 percent of their gross salary for each year they were employed at a company. The highest payout is 700 percent of gross salary for those who have worked at a company for six years or more.

Regarding the service payment, employees who have worked at a company for up to two years receive 200 percent of their salary. The highest payment is 1,000 percent of gross salary for those who have worked at a company for 24 years.

Protests

Meanwhile, after two days of violent labor protests, the situation in Bandung began to return to normal, with public transportation and shops beginning to resume operations.

Bandung Police chief Sr. Comr. Timur Pradopo said 89 people had been questioned in connection with the unrest and nine of them were being detained.

Timur added that not all of those being detained were workers. He said two of them were students and four were unemployed.

"According to our preliminary investigation, the protests were not pure labor demonstrations. The rallies were being misused by other parties," Timur said without elaborating.

In Gresik, East Java, thousands of demonstrators, riding on motorcycles and trucks, pelted stones at several factories along Jl. Bambe, which connects Driorejo and Panjang -- both industrial areas. Panjang is 20 kilometers west of Surabaya, the provincial capital.

When the demonstrators reached PT Surya Kertas, police fired warning shots and tear gas to disperse the crowd.

A security post and dozens of parked cars were attacked by demonstrators during the protest.

Surabaya Taman Police chief Sr. Comr. Soedirman said "tough action had to be taken because the protesters had become brutal and attempted to attack our officers".

"So far there have been no fatalities, but we brought in 10 people for questioning."

In a related development, East Java Police chief Insp. Gen. Sutanto said the recent wave of labor protests had been "used by a third party trying to exploit the chaotic situation during the protests".

Meanwhile, Jakarta Governor Sutiyoso said his administration had decided to bow to workers' demands and would implement decree No. 150. (02/jun/25/nur/emf)