RI businesses welcome Global Compact

Tony Hotland, The Jakarta Post, Jakarta

The country's business community welcomed the launch of the Global Compact on Saturday by the Indonesian Employers Association (Apindo), but called for government efforts in boosting the business climate for the implementation of good international business practices.

"I think it's going to be a long haul to establish all of the principles... We still have yet to resolve unemployment problems, not to mention legal uncertainties and low productivity. It's a good effort, though, and I think it definitely requires more campaign efforts in the regions," East Kalimantan businessman Sutjirdja told The Jakarta Post.

Another businessman from Nanggroe Aceh Darussalam, Dahlan Sulaiman, said the success of this commitment entailed strong dedication from businesspeople.

"It's really about time. As a member of Apindo, we should support it by looking into the matters covered in the Global Compact more seriously," he said.

Chairman of Apindo Sofjan Wanandi said such a commitment was hugely important to show the international world that Indonesian companies were also eager to conduct business in compliance with the international standards of the Global Compact.

"We'll recommend our business colleagues to register with the United Nations for the Global Compact. We must show the global market that we're trying to do the same as with other foreign companies," he said after the launch.

In an event attended by some 100 businesspeople from across the nation, Apindo launched the Global Compact commitment in a bid to help local companies regain their foothold in the international market.

Initiated by the United Nations in 1999, the Global Compact comprises nine universal principles drawn from the three broad issues of human rights, labor and the environment.

At present, only two Indonesian companies have become members of the Global Compact, one of which is cosmetics giant Martha Tilaar Group.

"We were recommended (to join the Compact) in 2000 by a French non-governmental organization. It's a good opportunity, because it broadens out network with other international companies. Besides which, we can learn about strategy from them to compete in the global market," said the group's founder, Martha Tilaar.

Sofjan said Apindo would form a team that would familiarize businessmen with the Global Compact through training and educational workshops, and act as a facilitator, motivator and advisor.

In regards concerns about the general elections, Sofjan said the business community would generally be taking a wait-and-see stance, pending the electoral outcome.

"Most have concerns and some worries about possible negative excesses during the general elections. It is likely they won't make any major investments in the next six months and will just prepare for the new government," he said.

Saturday's launch was arranged to coincide with Apindo's 52nd anniversary. Sofjan said the association would prioritize seeking ways to help resolve the country's massive unemployment problem.

"We're recommending a freeze on the minimum wage, especially for labor-intensive sectors such as textile and forestry. We've had discussions with several labor union representatives, some of whom responded positively, but some are still discussing with their fellow workers," said Sofjan.