RI businesses welcome Global Compact

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.