Govt to address problems faced by textile companies
Govt to address problems faced by textile companies
JAKARTA (JP): The government has agreed to look into
complaints raised by textile and garment companies that its wage
policy could mean disaster for the country's main export
industry.
Leaders of the Association of Indonesian Textile Industries,
led by Secretary-General Benny Sutrisno and chairman of its
Jakarta chapter Haryadi Sukamdani, visited the Ministry of
Manpower yesterday to discuss the problems with Suwarto, the
Director General for Industrial Relations and Labor Standards.
Their presence was an unusual sight in the ministry more
accustomed to visits by complaining workers.
Suwarto told The Jakarta Post after the meeting that his
ministry will soon establish a team including representatives of
employers, workers and the government to discuss the issue.
The government will also consult university experts.
The team would look into why textile and garment companies
have problems meeting the government's wage regulations and
hopefully come up with some solutions, he said.
He stressed, however, that the government would not sacrifice
the interests of the workers. "They (the companies) must also
understand the condition of the workers," he said.
Employers have voiced their objection to the 10 percent daily
minimum wage hike set by the government, effective next month,
and also to a ruling issued in January compelling them to pay
workers hired on a daily basis a salary based on 30 days of work.
Garments and textiles make up Indonesia's number one export
industry outside of the oil and gas sector, but its role has been
declining in the last three years. In 1995, the industry earned
Indonesia US$5.4 billion in foreign exchange revenues, down from
$5.8 billion in 1994 and $6.2 billion in 1993, according to
official statistics.
Industry analysts warn that Indonesia is losing out to
newcomers in the world markets, such as China and Vietnam, and
that wage increases at home are eating away at the country's
competitive edge.
Benny Soetrisno of the textile association argues that such
labor-intensive industries are very sensitive to wage policy
changes.
He said the changes in government policy are compounding the
problems faced by his members, who are struggling in the face of
fierce international competition.
The government in January announced that it is hiking the
minimum wages in all 27 provinces by an average of 10 percent
effective April 1. The daily minimum wage in Jakarta will be
increased to Rp 5,200 from Rp 4,600.
Soewarto said that so far the Ministry of Manpower has not
received any formal requests from textile and garment
manufacturers to be exempted from the wage changes, a concession
sometimes granted to companies experiencing financial
difficulties. (rms/03)