Joint employer-worker office to be set up

Joint employer-worker office to be set up

Adianto P. Simamora, The Jakarta Post, Jakarta

The Employers' Association of Indonesia (Apindo) said on
Tuesday that it would set up a joint office between employers and
workers as part of efforts to resolve the long-standing labor
problems in the country.

Chairman of Apindo Sofjan Wanandi said that the move would
also be aimed at reducing the government's intervention in
resolving labor conflicts.

"We shall collate all complaints, both from employers and
workers, in the planned joint office and try to seek solutions as
quickly as possible."

"We shall also try to minimize the intervention of the
government in resolving labor conflicts, as businesses want to
seek a concrete solution," Sofjan told reporters after announcing
the new board members of the association.

Among the association's members are Mochtar Riady, Sukamdani
Gitosardjono, Ciputra, The Nin King, Aburizal Bakrie, Eva Riyanti
Hutapea, Sukanto Tanudjaja, Subronto Laras, Theodore P. Rachmat,
Alim Markus and Rahmat Gobel.

"This is the first time in the country that businesspeople
have been ready to sit in Apindo. I have also asked foreign
investors to join with us," he said.

He said that U.S.-based gold and copper mining company PT
Freeport Indonesia, for example, had sent personnel to become
actively involved in the day-to-day operations of the
association.

Sofjan said that in the near term, Apindo would focus on
resolving labor conflicts to help regain both foreign and
domestic investor confidence in the country.

"We have to quickly resolve existing labor issues if we want
to attract investors and help create new jobs for millions of
unemployed people in the country," he said.

Lingering labor conflicts have been cited as one of the main
reasons for the relocation of many companies to other countries,
such as Vietnam and China.

Analysts said that these problems had caused foreign and
domestic investors to shun the country.

Investment approvals have been declining since the country
plunged into a combined economic and political crisis in 1997.

In 2002, foreign direct investment approvals, for example,
plummeted by 35 percent, to US$9.7 billion from the previous
year's $15.06 billion, while domestic investment approvals
dropped by 57 percent, to Rp 25.26 trillion from Rp 58.62
trillion.

Boosting investment is vital for the recovery of the country's
ailing economy and to help meet the target of 4 percent economic
growth.

Sofjan was very active in demanding the government revoke
ministerial decree No. 150/200 on labor, which had been overly
protective of workers at the expanse of employers. Consequently,
in March this year, President Megawati Soekarnoputri signed a new
manpower law, which guarantees the rights of both workers and
employers.

However, the government has yet to issue supporting
presidential and ministerial decrees to implement the new
manpower law.

"We have set up a team to help the government formulate the
supporting decrees. We are hopeful the decrees can be issued this
year," he said.