Megawati, Mahathir expected to settle labor issue

Fabiola Desy Unidjaja, The Jakarta Post, Ubud, Bali

Malaysian Prime Minister Mahathir Mohammad will begin a two-day visit here on Wednesday in the wake of an exodus of Indonesian illegal workers from his country.

The issue of illegal workers has added some tension to the relationship between the two countries, although they have survived a number of thorny issues over the years, dating back to the early 1960s when founding Indonesian president Sukarno declared war with Malaysia.

Since Aug. 1, Kuala Lumpur has adopted a tough new immigration policy, which has resulted in the exodus of more than 300,000 Indonesian illegal workers. The new policy came months after Indonesian workers were involved in riots in Malaysia, which prompted Mahathir to put Indonesians at the bottom of the list in the recruitment process and restrict them to plantation and domestic jobs only.

Indonesia is worried the return of the migrant workers will spark new problems, especially unemployment. Jakarta has formally asked for a one-month extension of the amnesty for the illegal workers.

After his arrival in Bali at 5 p.m. on Wednesday, Mahathir is scheduled to stay overnight at the Tampak Siring presidential palace and hold meetings with President Megawati Soekarnoputri about the labor issue and other matters.

Thai Prime Minister Thaksin Shinawatra will join Mahathir and Megawati to witness the signing of the memorandum of understanding on a three-nation rubber corporation at the palace.

Foreign ministry spokesman Marty Natalegawa dismissed speculation that the problem of illegal workers would adversely affect relations between Indonesia and Malaysia, which he said was one of Jakarta's most important friends.

"The labor problem will not overshadow the generally positive relations between the two countries. This is just a temporary obstacle that we have to deal with," Marty told The Jakarta Post on Tuesday.

Another issue that could complicate relations between the two countries is last month's rejection by the Indonesian government of a bid from a Malaysian consortium for the Jakarta Outer Ring Road (JORR) project. The government instead awarded the project to local company Jasa Marga.

"We have had high-profile cases, but after all is said and done we realize that it is a very important relationship (between the two countries)," Marty said.

The two countries are also involved in a territorial dispute over the islands of Sipadan and Ligitan. The case is being brought to the International Tribunal in The Hague.

Indonesia is set to propose a new memorandum of understanding on the labor issue. It is expected this memorandum will contain guidelines for the return of the migrant workers to Malaysia.

However, Marty said it was unclear whether the two sides would reach an agreement on the labor issue.

"I cannot say whether a deal is ready or not," he said.

During his visit, Mahathir is scheduled to attend a ceremony marking the official delivery of 250 standard cubic feet per day of natural gas from Indonesian state oil and gas company Pertamina to its counterpart Petronas.