Labour Coalition Meets with DPR, Highlights Foreign Investors Fleeing Without Paying Severance
The Grand Labour Struggle Coalition of Indonesia held a meeting with House of Representatives Commission IX to discuss the Labour Bill. The labour group conveyed a number of aspirations, including highlighting the phenomenon of foreign investors fleeing without fulfilling workers’ severance entitlements.
The meeting, attended by labour groups, the Indonesian Employers Association (APINDO), and Commission IX of the House of Representatives, took place at the Parliament Building in Jakarta on Monday (14/8).
Representative of the Grand Labour Struggle Coalition of Indonesia and President of the All-Indonesia Workers’ Union Confederation (KSPSI), Andi Gani Nena Wea, stated that his side had submitted a draft of recommendations to be accommodated in the deliberation of the Labour Bill.
“We brought a draft and this is extraordinary progress in the drafting of legislation. Commission IX is more open at present to receiving input,” said Andi Gani after the meeting at the Parliament Building.
Andi Gani mentioned that 80 per cent of the proposals from the Grand Labour Coalition had been incorporated into the draft Labour Bill. The coalition encompasses 11 labour confederations and 158 national-level federations.
“It was conveyed by the leadership of Commission IX that 80 per cent of the proposals of the Grand Labour Struggle Coalition of Indonesia have been included. However, we do not yet know the details of that 80 per cent,” said Andi Gani.
“We ask the political parties not to play games because this issue is highly sensitive and carries high risk. We will truly announce which parties do not care about the drafting of this legislation,” he added.
The Grand Labour Coalition paid particular attention to several key points, such as the wage system, outsourcing, social security, and severance reserves. Andi Gani stressed that the state must not wash its hands of its responsibilities.
“The proposals from the grand coalition cover wage issues, outsourcing, apprenticeships, fixed-term employment agreements (PKWT), social security, and severance reserves. So, the state must not run away from its responsibility. I emphasise this once again,” said Andi Gani.
He also urged that employers and workers not be pitted against each other in conflict. The state must be present to resolve problems collectively.
“Do not let us continue to be pitted against employers. There is a state responsibility to be present together because the mechanism is tripartite: government, employers, and workers. If the three work in harmony, the outcome will certainly be very good,” he continued.
Regarding the severance reserve scheme, Andi Gani said this point is one of the main priorities. This is based on the many cases of companies closing without settling workers’ rights.
“Regarding severance reserves, we and APINDO have already agreed because the state must play a role. For example, many companies close or act in bad faith. There are rogue foreign investors who flee, abandoning their businesses after reaping maximum profits. Therefore, a severance reserve scheme must exist and be paid upfront,” he asserted.
In addition, he proposed that the nomenclature of this draft regulation be changed to the Labour Protection Bill. According to him, legal protection must cover both parties in a balanced manner.
“We propose the name Labour Protection Bill. Because labour protection is not only for workers, but also for companies and employers,” he said.
On a separate occasion, Deputy Chair of Commission IX of the House of Representatives Nihayatul Wafiroh assured that proposals from both labour and employer sides would be properly accommodated. The draft bill is planned to be brought to a plenary session soon.
“We ensure that the proposals of both parties have been accommodated. It can be seen together when the draft is brought to the Plenary Session,” she said.