U.S. to asses labor conditions in Indonesia

JAKARTA (JP): A new United States study of labor conditions in Indonesia which begins next week could lead to the suspension of the trade privileges granted to this country by Washington under the Generalized System of Preferences (GSP).

The manpower ministry's Director General for Industrial Relations and Labor Standards Suwarto told The Jakarta Post yesterday that a team of United States Trade Representatives (USTR) would arrive on Monday to carry out the study.

Suwarto said the USTR team was scheduled to meet with several government ministers, including Minister of Manpower Abdul Latief, and with leaders of the All Indonesian Workers Union (SPSI). The team also plans to meet with non-government organizations and to visit a number of industrial plants, he said.

The findings of the USTR team will be used by Washington to determine whether or not Indonesia is entitled to a continuation of GSP preferences, under which a number of Indonesian commodities are exempted from U.S. import duties.

In 1993 Washington threatened to withdraw GSP privileges, citing the Indonesian government's neglect of labor rights. The United States did not carry out its threat after receiving a report from a USTR team, the contents of which indicated that some improvements had occurred.

Another USTR team was sent to Indonesia last year.

Suwarto said he had just returned from the United States as part of the government's campaign to improve the image of Indonesia with the American people, particularly Congress.

He said he had informed Congress of the progress Indonesia was making in improving the condition of workers in the country, including the recent increases in official minimum wages and the strengthening of legal protection for workers.

He said mutual understanding seemed to have been reached between Indonesia and Congress regarding the improvements. "Only in the case of freedom of association do the two countries have differing opinions," he said.

He said Congress based its views largely on "old labor issues", such as workers' dismissals, arrests of labor activists and the banning of unions other than the SPSI.

Suwarto said he had countered some of the allegations and explained Indonesian law regarding the activities of unions.

He said his meeting with the U.S. Congress had followed a petition lodged by the Washington-based Human Rights Watch/Asia, which called on Congress to urge the Clinton Administration to suspend Indonesia's GSP trade privileges.

On Wednesday, Human Rights Watch/Asia also recognized improvements Indonesia was making in ensuring compliance with the minimum wage regulations.

But, the organization said in a statement addressed to the U.S. administration, "the most fundamental labor right of all -- freedom of association -- continues to be denied to Indonesian workers."

"Labor rights in Indonesia continue to fall far short of international standards," the statement said, as quoted by AFP. (rms)