Shortchanged workers face uncertain future
Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta
Thousands of workers from failing factories, formerly run in whole or in part by international companies, in Greater Jakarta are facing a bleak future as there is not yet an existing law that deals with foreign investors who close up shop without agreeing on settlements with the workers.
Agustinus Santoso, secretary of the national office of the People's Legal Aid Institution (LBH Rakyat), told The Jakarta Post on Tuesday that such situations had brought many labor activists and legal experts into a coalition.
"We will make our way to see a legal instrument established to prevent foreign investors from fleeing the country and closing their factories before paying their workers' salaries and severance pay," he said.
Greater Jakarta's branch of LBH Rakyat (LBH Rakyat Jabotabek) is currently handling the case of 300 workers from garment factory PT Elaine which is located in the industrial park Kawasan Berikat Nusantara (KBN) in Cakung, East Jakarta.
The factory abruptly stopped operations on Feb. 10 after the investor group left the country for Taiwan, leaving the workers without jobs or salaries.
The operator of state-owned KBN is reportedly taking over the factory's machines and assets to auction off without questioning the employer's responsibility.
"We suspect a deal between KBN and the foreign investors to allow the operator to obtain the assets for sale, ignoring the proper procedures including the required court ruling on bankruptcy," Agustinus further said.
LBH Rakyat demanded the Directorate of Customs and Excises at the ministry of finance to issue a decree on forcing the employer to pay the factory's unpaid expenses, including salaries, before an auction was taken.
Agustinus said he did not know when the workers might receive the money they are demanding since the directorate office had yet to respond, saying only that, "it will take time". He added that LBH Rakyat Jabotabek has also planned to file a complaint with the police.
Last year, thousands of workers from eight garment factories also faced similar problems but no solution has been reached.
Six of the factories in question are PT Global, PT Metro, PT Tongkyung Makmur Abadi, PT Indolim, PT Jaya Toys Rekatama and PT P and K Garment Indonesia which were all operated by Korean investors without Indonesian partners.
The other two are: Japanese and Indonesian joint venture PT Kanisatex, located in Cileungsi, Bogor, and PT Trenton Garment Indonesia, owned by a company from China.
Many labor activists and legal practitioners accuse the government of greatly favoring foreign investors in its effort to generate economic growth, while sacrificing the welfare of local workers.