'Industrialists remiss on workers' welfare'

'Industrialists remiss on workers' welfare'

JAKARTA (JP): Minister of Manpower Abdul Latief lashed out at
Indonesian industrialists yesterday, saying that most of them
only emphasize the profit aspects of their companies but neglect
the welfare of their workers.

Addressing a seminar held by the National Council on Wages, at
the Borobudur Hotel, the minister said the government's
regulation on minimum wages is designed to protect workers'
welfare.

"So far, most Indonesian industrialist are just like traders,
who do not pay much attention to the development of human
resources," Latief said, adding that such an attitude did not
reflect the true role of professional industrialists.

He also pointed out the importance of workers' welfare, which,
he said, "is one of the main factors supporting a company's
productivity," and that good workers are like an asset of the
company.

He said that, in the present era of global changes, low wage
levels are no longer regarded as a comparative advantage.

"Only when the workers feel secure for their welfare and get
reasonable pay can they do a good job, which yield to higher
productivity," he said, adding that low wages might hamper the
workers' creativity and efficiency.

Latief, a successful businessman, who built the Sarinah Jaya
empire, recruited by President Soeharto into the cabinet, also
dismissed the arguments often put forward by his former
colleagues that wage increases should be linked to productivity.

He argued that companies should first ensure that their
workers' welfare is well taken care of before discussing any link
between wages and productivity.

Stressing that labor issues can be manipulated politically, he
said that his ministry has always wanted to settle the issue
strategically and conceptually.

Yesterday's seminar was attended by about 200 participants,
who represented various business companies and government
institutions.

Another keynote speaker at yesterday's meeting was the
director general of taxes, Fuad Bawazier.

Bawazier said that the government taxation system is designed
to support the development of human resources by improving
technical skills and know-how.

He cited, as an example, that the money collected from income
taxes is used partly to finance the training of workers, to
provide them with scholarships, as well as to conduct research
and development activities, all of which are for the workers' own
benefit.

He said that income taxes should not be a burden to workers,
because the government has introduced a policy to exempt them,
especially the low-income workers, from paying taxes.

Those workers with small incomes, but who have big families to
support, are exempted from paying tax.

Currently, the government applies tax exemption for workers
with a spouse, three children, and yearly income of Rp 5,184,000
($2,305). (03)