Govt in tug-of-war with labor exporters

Govt in tug-of-war with labor exporters

JAKARTA (JP): As the controversy over the minimum capital for
labor exporters rolls on, the director general for labor
placement, Din Syamsuddin, asked on Tuesday that labor export
firms incapable of complying with the rule to stop operating.

Din said the labor export sector required strong capital to
enable it to go international and expand its market to numerous
countries.

"Labor exporters with small capital should not take part in
labor export activities. They should do their businesses in other
sectors in line with their financial capabilities," he said.

The Manpower Ministry issued in September last year a
ministerial decree requiring a labor export company to place at
least Rp 1 billion in capital comprising assets worth Rp 750
million, along with a Rp 250 billion bank deposit.

It set a June 1 deadline for companies to meet the new equity
ratio.

The previous ruling issued in 1998 set the minimum asset at Rp
300 million and the minimum bank deposit at Rp 75 million.

The bank deposit, placed under the name of the manpower
minister, is compulsory in order to cover protection guarantees
for workers and serve as a stand-by fund to help workers in need
abroad.

"It will be very difficult for small- and medium-scale
companies to participate in the labor business because it needs
strong capital to make it more professional and credible," Din
said.

He acknowledged that the decree was issued for the purpose of
cutting down the number of labor-supplying companies which has
now reached a staggering 450, while also hoping to improve legal
protection for migrant workers, too.

"It is impossible for small companies to provide legal
protection for workers or to hire foreign lawyers to provide
legal aid for workers in need," he said.

Many small companies have used their bigger counterparts in
exporting workers because of financial concerns.

"As a consequence of this, many workers they send get in hot
water because they don't undergo proper training beforehand," he
said.

Unfair

More than half of the 421 firms under the auspices of the
Indonesian Labor Exporters Association (Apjati) have repeatedly
criticized the new ruling.

Enraged, they demanded that Din and Minister of Manpower Bomer
Pasaribu step down.

The companies have complained they would be unable to meet the
set deadline.

They also claimed the government did not involve Apjati in
drawing up the decree.

"It is very strange that the government has made a new
regulation without prior discussion with us," Apjati chairman
Abdullah Umar said.

He added that Din had issued numerous rulings unilaterally,
which eventually sparked much criticism.

He said the government was considered unfair and would enforce
the decree to all labor exporters.

"The government should be wise in enforcing the decree because
the companies cannot be treated equally," he said.

He also suggested that the government offer a long grace
period to the labor exporters, which they will undoubtedly need,
in order to adjust to the new requirement.

"It is not fair to allow only three weeks for the exporters to
renew their licenses as stipulated in the new decree," he said.

Abdullah said the government's reason -- to enact the decree
to improve protection for workers -- was baseless.

"If the government wants to improve protection for workers, it
should revamp the insurance program for workers and improve
bilateral cooperation with foreign countries where Indonesian
workers are employed," he said.

He stated that thousands of workers who have gone abroad since
March have been abandoned because all nine insurance consortia
appointed to represent them were suspended due to the absence of
liaison officers overseas.

"If the government is consistent with the law, all workers
should participate in the social security program (Jamsostek) to
provide basic protection for workers. The commercial insurance
run by the nine consortia is not mandatory," he said.

Abdullah called on the government to draw up a new bill on
labor export -- instead of decrees -- to give legal certainty
both to workers and labor exporters.

He also said the government should revive all training centers
and establish new ones in which to train workers as is stipulated
in the constitution.

"The government is obliged to provide not only education but
also vocational training for workers. Indonesia should promote
vocational training to catch up with other countries such as the
Philippines, China and South Korea," he said.

He acknowledged many workers have been sent without adequate
training, saying this has caused a decrease in demand for
Indonesian workers in foreign markets. (rms)