Fri, 11 Nov 1994

Kantor asks for publication of negligent firms: Latief

JAKARTA (JP): U.S. Trade Representative Mickey Kantor asked yesterday for publication of the names of negligent firms during his informal talk with Indonesian Minister of Manpower Abdul Latief.

During the talk at the minister's office, Latief briefed Kantor on the improving labor conditions in Indonesia.

"Kantor acknowledged the improvement, seen in the decrease in the number of labor disputes, improvement in labor's living standards and better minimum salaries," Latief said.

When the talks touched on the regional minimum wage requirements, Kantor asked Latief to air the names of companies who violated existing regulations.

Latief reportedly frowned upon the demand, saying the practice would conflict with Indonesian law.

"Under Indonesian law, the identities of suspected violators have to be withheld, pending court decisions on their cases," Latief said.

In response to Kantor's request, however, the Ministry of Manpower will air suspected violators more frequently.

"We shall reveal identities routinely once a month. However, in compliance with existing laws, identities are to be withheld pending the case results," said Latief.

Latief, however, refused to specify which laws he was referring to.

More frequent announcements, according to Latief, are sign of progress. The ministry usually airs the names of negligent firms only once every three months.

Under the current regulation on regional salary levels, effective since April, each worker in Batam receive the country's highest salary of Rp 6,750 (US$3.20) per day while workers in West Kalimantan get the lowest one of Rp 2,250. Workers in Jakarta get an average of Rp 3,800 per day.

During the meeting Kantor did not touch on labor activist Mochtar Pakhpahan, who is concurrently chairman of the outlawed Indonesian Prosperous Labor Union (SBSI).

"He did not raise a single question about him (Pakhpahan)," Latief told reporters after the brief talk.

Pakhpahan was recently sentenced to three years imprisonment at the Medan district court for his involvement in inciting laborers to commit racial riots last April.

GSP

The Manpower Minister said Kantor and his staff appeared satisfied with the talk, where Kantor underlined the importance of a good relationship between the two countries and of his need for complete information on labor affairs here.

Latief said he made no query on the Generalized System of Preferences (GSP) threat during the talk, while Kantor himself did not touch on the subject as well.

"He (Kantor) just said 'This talk is very good. We need complete information (on Indonesia's labor condition). It will be useful for us to talk about GSP back home," said Latief.

Indonesian exports, entering the American market duty free under the GSP facility, reach approximately US$620 million a year.

Last year the U.S. threatened to revoke the trading privilege for the alleged shortcomings in labor protection in Indonesia but the U.S. has yet to announce its intentions to nullify the threat.

The U.S. ties the trading privilege with labor, human rights, environmental issues. Indonesia now and then insists it will reject economic aid or trade privileges which are linked with non-economic issues. (jsk)