Indonesian Political, Business & Finance News

Shadow of suspicion

Shadow of suspicion

The manpower bill has finally been endorsed into by the House
of Representatives, amid pressure from labor activists.

The bill's endorsement is an achievement for Minister of
Manpower and Transmigration Jacob Nuwa Wea, because three
previous manpower ministers had failed to get the bill passed.

The question concerning the law, however, is not which parties
endorsed it. Rather, the question is about the law's substance
and its future implications for the Indonesian people, both
employees and employers.

The law's articles do not side with workers, especially in
cases of companies that are closing down, strikes, layoffs,
severance pay and outsourcing workers.

The House took a long time to discuss the articles on
severance pay for fired employees. The debate on this issue
became so heated that a 30-minute break was necessary during the
meeting to give the House special committee that drafted the bill
time to hear again the opinions of all concerned parties.

The final results of the law, however, failed to satisfy all
parties. Both workers and employers feel that some of their
interests were not accommodated by the new law.

And both sides are upset with Jacob Nuwa Wea. Some employers
are suspicious of the minister, who is also an official in the
ruling Indonesian Democratic Party of Struggle (PDI Perjuangan)
and a former official of a labor federation.

They have accused Jacob of abusing an agreement between the
association of employers and association of workers. The
employers believe Jacob sided with employees, while the workers
have accused him of betraying them.

-- Bisnis Indonesia

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