Jacob scolded over accusations

Jacob scolded over accusations

Muhammad Nafik, The Jakarta Post, Jakarta

Labor leaders and activists lambasted on Monday Minister of
Manpower Jacob Nuwa Wea's recent statement accusing militant
trade unions of scaring off investors and undermining the
country's business climate.

Dita Indah Sari, the chairwoman of the National Front for
Indonesian Workers' Struggle (FNPBI), accused the government of
trying to find a scapegoat for its failures to enforce the law
and ensure security for investment in Indonesia.

Dita, who was once jailed by the Soeharto administration, also
accused the government of fooling the public by making the
statement.

"They (the government) try to put the responsibility for the
drop in investment on labor action, when it's their failure to
uphold the law to ensure a good business climate," she told The
Jakarta Post.

Muchtar Pakpahan, chairman of the Indonesian Prosperity Trade
Union (SBSI), lashed out at Jacob, once a labor leader, for
making what he said was a "misleading statement".

"Workers should not be blamed. I regret the minister's
statement, and he is a former labor leader," he told the Post.

Muchtar said that what was true was that the decline in
investment and poor business climate was a result of persistent
uncertainty in law enforcement and security.

Besides, the government did not have clear economic schemes to
lure investors and lift the country out of the prolonged crisis,
he said.

Muchtar's deputy, Rekson Silaban echoed the same view, quoting
findings from an international labor research report that
militant workers did not significantly affect investment or
overall business.

"Based on research conducted by the International Labor
Organization (ILO) and the Organization for Economic Cooperation
and Development (OECD), militant labor action is only a seventh
factor in plummeting business," Rekson said separately.

He said political stability, a legal guarantee and investment
security were the three most dominant factors in economic
development.

Dita said that apart from the country's ambiguous economic
regulations, regional autonomy should also be partly blamed as it
further supported corrupt practices.

Earlier on Sunday, Jacob said militant labor unions had gone
too far, leading to a significant drop in domestic and foreign
investment in the country.

He said their actions had rendered the business climate less
attractive for investment, with many businesspeople relocating
factories to neighboring Asian countries.

Direct foreign investment has plunged drastically in
Indonesia. In the first five months of this year, government-
approved foreign investment reached only US$1.6 billion, a 60
percent fall from 2001.