Megawati, Mahathir expected to settle labor issue

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.