U.S. sees progress on Indonesian labor front

U.S. sees progress on Indonesian labor front

JAKARTA (JP): The United States, which is currently reviewing
the trade privileges it grants to Indonesia, says that Jakarta
has made some progress on the question of workers' rights.

The U.S. embassy said in a brief statement yesterday that its
government is continuing to hold dialogs with Jakarta on the
question of whether or not to extend the Generalized System of
Preferences (GSP) to Indonesia.

"We do not expect any announcement to be made while this
dialog is continuing," it said. "We note there has been some
progress since last January but as the Indonesian government
acknowledges, more needs to be done."

The United States had been expected to make its decision by
Aug. 15 when the current six-month review ends, but Indonesian
officials now say that Washington may have decided to postpone
its ruling pending the enactment of the new regulations regarding
the GSP in September.

Officials privately said that they expect a favorable ruling
given repeated pronouncements by Washington of the increasing
importance of Indonesia to U.S. trade ties.

The first six-month review ended on Feb. 15 at which time
Washington decided to grant another six months.

Washington has threatened to cut Indonesia out of its GSP, a
facility which grants duty free status to selected products,
unless the Indonesian government improves the condition of
workers in the country, particularly on the questions of wages,
their right to organize and also the employment of child workers.

Some US$650 million worth of Indonesian exports to the United
States, or 14 percent of the total, are entitled to the facility.

Over the past year, the government has hiked the minimum wage
levels, revoked a decree allowing companies to summon the
military during strikes and adopted several other measures
designed to improve the workers' welfare.

The government however continues to insist that only unions
affiliated with the All Indonesian Workers Union (SPSI) are
allowed to represent workers in disputes with management.

Minister of Manpower Abdul Latief yesterday said the
government continues to furnish Washington with all the
information regarding the conditions of workers in Indonesia.

Asked about Indonesia's position on the matter, Latief, who is
himself a former businessman, said; "Of course we want the GSP
facility to be continued."

He added however that the nation would be prepared if
Washington decided to end the GSP.

Asked whether his recent trip to the United States had
anything to do with the GSP negotiations, he replied: "I went
there for a medical check-up." (emb)