indonesian worker

Garment workers demand salaries

2007-07-12T16:10:00.000+07:00

The Jakarta Post
City News - June 11, 2007

TANGERANG: Some 300 workers of garment producer PT Miju went on strike Saturday, accusing the company of failing to pay their May salaries on June 5 as promised.

"We only received part of our April salary, but the company had promised to give us full payment for the May salaries," said one of the striking workers, Hamdan.

He said they had received just 10 percent of their April salaries, which range between Rp 650,000 (US$73.80) and Rp 700,000.

Factory manager Eka Muryati said the company was facing financial problems because of falling export orders.

"We will likely be unable to pay the workers their salaries before June 12 because we have no money now," she said, adding that the company was on the verge of bankruptcy as a result of the losses it has been experiencing. -- JP

More die at accident plagued building site

2007-07-12T16:07:00.000+07:00

City News - June 09, 2007

The Jakarta Post, Jakarta

For South Jakarta's One Pacific Place high-rise building project, three is certainly not a lucky number. Three accidents on the construction site have taken three lives and injured several others in just three weeks.

In the latest fatal accident late Thursday night, two men were killed and two others injured when scaffolding on the building collapsed, police said.

The remains of the workers, identified as Tugiyo, 40, and Lamijo, 40, were taken home Friday to Gerobokan, Central Java. Two survivors, Lili, 29 and Kasmijo, 29, went home with minor injuries.

The scaffolding incident was the second mishap to strike the project after a collapsing crane killed a security guard passing near the site three weeks ago. The police have named the crane operator a suspect in the incident.

A third accident occurred at 3 a.m. Friday when the sling of a crane rack broke, forcing several workers riding in the cart to break glass windows to escape from the precariously dangling cabin.

No official reports have been filed over the last accident.

Kebayoran Baru police, who oversee the local area, have questioned witnesses and injured victims from the first two accidents.

"We also questioned project supervisor Sugiyanto to find out who was responsible for the (scaffolding) accident," the head of the subprecinct's criminal unit, First Insp. Heru Ruspiandi, said Friday.

He said police would also summon PT Ascet, the contractor that installed the scaffolding.

If an investigation found the accidents were caused by negligence, suspects could be charged with a maximum of five years imprisonment, he added.

According to Heru, the accident happened when the scaffolding where Tugiyo and Lamijo were working collapsed, smashing another one under it where Lili and Kasmijo were working.

"We found the upper scaffolding smashed at the 8th floor and the other stuck on the 27th floor, where Lili and Kasmijo were still hanging alive," he said.

Heru added that police would recommend the Manpower Agency issue a warning to PT Ascet, the building's manager, to pay serious attention to the safety of the site.

"(Getting contractors to prioritize safety) is hard, unless (a project) is controlled by foreigners," said a supervisor for mechanic and electrical installment at a construction site near the One Pacific Place complex.

The supervisor, who asked to remain anonymous, said he found many locally-backed projects did not regard safety as an important issue.

Indonesian Society of Civil and Structural Engineers chairman Davy Sukamta said that probable cause of the recent incidents could be based in the project's work safety system.

According to Davy, work safety plans should deal with every detail to avoid accidents involving workers and the public.

"When we're talking about incidents involving heavy equipment, it's because of old age and a lack of maintenance," Davy said.

"If the equipment was in normal and proper condition, it would not have collapsed."

Davy said head contractors should be held responsible for every accident that occurred at construction sites.

"They are the ones responsible for choosing subcontractors," he said.

He said the first crane accident at One Pacific Place could have been avoided by either temporarily blocking off traffic or working at night.

"The construction company was already aware of the degree of danger of such heavy work so it should have tried every possible way to minimize it," he said.(01/10)

Dismissal benefits draft raises doubts, confusion

2007-07-12T16:06:00.000+07:00

National News - May 30, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

A draft government regulation on labor dismissal benefits has been criticized by employers and labor unions alike for overlapping with existing regulations and reducing protection for dismissed workers.

Bambang Purwoko of the privately run Pancasila University told a seminar Tuesday that, from an academic perspective, severance payments regulated by Article 156 of the 2003 Labor Law were part of workers' normative rights and should not be included in social security programs.

"As it has been practiced worldwide, we know that only workers with post-employment benefits will receive (payments) after their employment or dismissal. This benefit is a guarantee and in order to ensure its payment, both workers and employers are required to create a funding system," he said during a seminar on severance payments, labor dismissal benefits and post-employment benefits.

The government prepared the draft labor dismissal benefits regulation to help employers better comply with the harsh labor law.

Employers initially proposed the draft regulation as an alternative solution following workers' opposition to a proposed amendment of the labor law. Though now, employers insist the draft further complicates the already entangled labor dismissal benefits landscape.

Labor unions recently rejected the draft regulation, which they said would impose uncertainty and reduce protection to dismissed workers.

Reliable sources said the draft regulation would require that employers pay 4 percent of their workers' monthly salaries in monthly premiums to finance a labor dismissal benefits program, which is scheduled to be vested to state-owned workers' insurance firm PT Jamsostek in addition to its existing social security programs.

Bambang warned Jamsostek against accepting the proposed program, inferring that it could cause serious financial difficulties for the insurer in the case of massive labor dismissals.

Secretary general of the Indonesian Employers' Association (Apindo), Djimanto, questioned the overlapping laws and social security programs for workers, which, in their implementation, have posed financial difficulties to employers.

"So far, employers have been required to pay post-employment benefits (JHT) under the 1992 Social Security Law, severance and service payments under the labor law and pension benefits under the 1992 Pension Law," he said.

"We have also been confused by the 2004 National Social Security System Law, which has yet to take effect."

Jamsostek president Hotbonar Sinaga said the insurer would be prepared to run the additional program only if employers pooled their funds for the scheme. He said his company would provide labor dismissal benefits in accordance with the amount of funds pooled.

"Or, as an alternative solution, employers could hike their payroll to the post-employment benefit program so that dismissed workers could claim the funds in case of their dismissal," he said.

Questioned on the limited financial capacity of many employers, Bambang called for bureaucratic reform and the elimination of the high-cost economy to allow employers to improve wages and contribute more to social security programs.

"Despite the numerous social security benefits and labor dismissal and service payments, workers have remained less protected because most are paid less and labor costs are pressed to cover the high-cost economy," he said.

MoU Must be Reviewed, Indonesian Workers in Malaysia Suffering Losses

2007-07-12T16:02:00.000+07:00

Monday, 28 May, 2007 | 15:53 WIB

TEMPO Interactive, Jakarta: A number of Indonesian migrant workers activists have asked the government to review the Memorandum of Understanding (MoU) with Malaysia signed in Bali in 2006.

The agreement is regarded as being detrimental to Indonesian citizens working as migrant labors.

Miftah, Chairperson of the Indonesian Migrant Workers Association, said that under the MoU, employers were allowed to seize employees’ passports.

This was despite passports being individual identities which cannot be held by anybody except police and immigration officers.

“But the government easily gives permission that passport is submitted to employers or agents in Malaysia,” Miftah told Tempo yesterday (27/5).

The policy that allows employers to hold passports, said Miftah, actually triggered the large number of trafficking cases.

It is not surprising therefore that the rights of Indonesian workers in that country are often violated.

For example, torture, unpaid salary, prohibition to marry at work place and impediments to meet family members.

“All are human rights violations,” said Miftah.
Anis Hidayah, Executive Director of Migrant Care, questioned the deportation policy carried out by Malaysia.

According to Anis, a lot of Indonesian workers are to be deported due to the wrong recruitment system in Indonesia.

“Indonesia should have been able to struggle to remove the deportation option, and fight for legalization. The documents are legalized because the laborers there actually already have jobs.”

NININ DAMAYANTI | EKO ARI WIBOWO

Hundreds of RI workers could face death penalty in Malaysia

2007-07-12T16:01:00.000+07:00

National News - May 26, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

While it grapples with the problem of large numbers of illegal migrant workers in Malaysia, Indonesia has another labor problem on its hands: 279 of its workers are on death row or facing possible capital charges in the neighboring country.

Manpower and Transportation Minister Erman Suparno said Friday the government had been providing legal assistance to the detained workers, but stressed that there are limits on what Indonesia can do to help.

"The government cannot interfere in the Malaysian judicial system because both countries impose harsh sanctions on such criminal acts," Erman told reporters after signing a memorandum of understanding on good governance with the Development Finance Comptroller here Friday.

He said 95 percent of the detained workers were Indonesians of Acehnese descent who were charged with illegal possession of drugs believed to have been brought from their home villages in Nanggroe Aceh Darussalam. Some have been convicted, while others are still under police investigation or face capital charges at federal courts in the neighboring country.

Erman said several Acehnese sentenced to death in drug cases were awaiting execution after their appeals were rejected by the Malaysian Higher Court.

He declined to reveal how much the government had spent to provide legal assistance to the workers, but said his office and the Foreign Affairs Ministry had worked closely to lobby Malaysian authorities to protect the workers' rights and to recruit Malaysian lawyers to accompany them during the police investigation and at court hearings.

In addition, Erman said, several Indonesian migrant workers are on death row in Saudi Arabia for their alleged involvement in murder cases at their workplaces.

Asked about a planned crackdown on Indonesian illegal workers in Malaysia, Erman said he had just held talks with the Malaysian home minister to ensure that Malaysian volunteers will treat undocumented workers humanely.

"Malaysian authorities have agreed to train their volunteers to treat the illegal workers according to the law and to impose harsh sanctions on any volunteers beating and robbing the workers during the operation," he said. He added that his office had also made a similar request of Saudi authorities in their upcoming raids on some 40,000 undocumented Indonesian migrant workers in that country.

Erman said further that Malaysia had agreed to issue ID cards for the Indonesian workers to replace passports that had been kept by their employers, so that the workers could file complaints with authorities if they were abused at their workplaces.

"The Malaysian government has also required Malaysian employers to insure their workers and to comply with the hike in monthly wages to 500 ringgit (US$147) from the previous 380 ringgit," he said.

Meanwhile, workers and activists staged a protest before the Saudi Embassy, demanding the royal government protect the human rights of undocumented Indonesians during the raid, slated to start June 1.

They said Saudi authorities should treat the workers humanely and fairly because their people have taken advantage of the workers.

"The amnesty period should be extended for a few weeks to let the illegals have adequate time to return back home voluntarily and to let them avoid fines and the threat of prison," Migrant Care coordinator Anis Hidayah said.

Our migrant workers, heroes or villains?

2007-07-12T15:58:00.000+07:00

The Jakarta Post
Opinion and Editorial - May 15, 2007

Ardimas Sasdi, Kuala Lumpur

Unless there's a definitive shift in the policy and view of the government and the public in general, the fate of millions of Indonesians working as migrant workers in foreign countries will remain disheartening.

We will continue to read and hear saddening stories in the media of our workers who are treated unfairly or inhumanly by their employers and law enforcers.

On the other hand, the employers, who are mostly better educated than the workers and knowledgeable about the law, usually go unpunished for their guilt. Why? Most of the migrant workers have little education and are not knowledgeable about labor laws. Some of them are illiterate, so they can be easily exploited by their employers, who sometimes cooperate with local police.

The majority of the around 2 million Indonesian migrant workers in Hong Kong, Malaysia, Kuwait, Saudi Arabia and Singapore work in the informal sector. Men usually work as laborers in construction companies, palm oil plantations and cleaning services, while women mostly work as maids. In the Malaysian capital of Kuala Lumpur many Indonesians work as shop keepers or attendants at restaurants.

The departures of these migrant workers from their hometowns in Indonesia to foreign countries are organized by private employment agencies, which are meant to be registered with the Manpower and Transmigration Ministry. Many of them are legal and have received training on the job they have to do, on language and the culture of the countries where they send people to work.

But quite a large number of the migrants, especially those working in Malaysia, are illegal and do not receive proper training before their departures. These workers enter Malaysia, which has a long sea border with Indonesia, stealthily, with the help of syndicates in Indonesia and Malaysia who cooperate with their future employers in Malaysia.

Most of the illegal migrants come to Malaysia by boat at night and are dropped in the sea around 100 meters from the seashore as the syndicates are afraid of being arrested by Malaysian patrol police. So these immigrants have to swim in chest-deep water to reach land in the country famous for its Petronas Twin Towers.

In Malaysia, according to the workers and Indonesians studying at Malaysian universities, these migrant workers live with legal migrant workers in makeshift temporary shelters, usually with people from their native provinces who have been in Malaysia for some time. Many of them mingle and live with people from their hometowns, forming enclaves based on their ethnic groups in Indonesia. Madurese, for example, tend to live with Madurese and people from Nusa Tenggara live with their colleagues from the same area.

Such a tradition has its own pluses and minuses. The positive aspect is they can help each other in times of happiness and difficulty, while the negative is the concentration of such a large number of people from one area tends to encourage exclusiveness and discourage socialization.

Worse, some are hot tempered and very fanatic about their ethnicity, so it is usual to hear that Indonesian workers in Malaysia have been involved in a brawl due to trivial causes. The frequent brawls tarnish the image of all Indonesians, who are known as "Indons" -- a derogatory term for Indonesian workers disliked by Indonesians -- and a new problem for Malaysian police.

The complaints of the workers are corroborated by Indonesian students, who say that the problem of Indonesian workers in Malaysia is very complex. Many of them are known as loyal and hard workers, but are often exploited by their Malaysian employers, who do not pay their salaries for months. When they ask for their salaries the Malaysian employers report the workers to the police, who then come to the scene and make indiscriminate arrests.

"In general public services in Malaysia are good, but not the police. The force has been infiltrated by the virus of corruption," said an Indonesian university student, adding that he and his friends had been fined for unclear reasons by Malaysian police who were willing to settle the matter for 10 Malaysian ringgit (US$3).

That the Malaysian police force is corrupt like Indonesia's is known to many and this is work for the Malaysian government to deal with. But the need to protect our migrant workers is ours even though we could ask for help from Kuala Lumpur on how to solve these matters as both the sender and receiver need these workers.

The job of protecting our migrant workers in foreign countries needs to involve many parties but the biggest task lies on the shoulders of our embassies, as the legitimate representatives of our government abroad. There are around two million migrant workers from Indonesia who work in foreign countries. Kompas daily reported these workers sent US$1.028 billion or Rp 9 trillion in remittances back home in 2002.

But the contribution of the migrant workers is not only in the form of the money they earn. Their employment in foreign countries has lessened the burden of the government in employment and in the provision of staple foods and services in transportation, education and many others.

The government is aware of the significant contribution of the migrant workers and has placed several labor attaches in countries where there are many migrant workers, but in the eyes of workers and students these civil servants have not been doing enough compared to their colleagues in the Philippines, another major exporter of workers.

The task of protecting the interests of migrant workers is indeed big and must begin at home. The key to doing this is to change our views and policies on migrant workers -- are they the heroes or villains?

The author is a staff writer at The Jakarta Post. He can contacted at ardi05@thejakartapost.com.

MOU needed for migrant workers: ILO

2007-07-12T15:55:00.000+07:00

National News - May 03, 2007

The Jakarta Post, Jakarta

The International Labor Organization (ILO) asked the government Wednesday to take the initiative and establish bilateral agreements with destination countries to protect the rights of migrant domestic workers.

"We want the government to focus on migrant domestic workers, because they make up ... 75 percent of Indonesian migrant workers," said Lotte Kejser, chief technical adviser for Combating Forced Labor and Trafficking of Indonesian Migrant Workers for the ILO.

"Most destination countries don't recognize domestic workers as skilled employees. The main problem is that household work is not regarded as a skills-based vocation."

She highlighted that Indonesia does not have labor laws covering the minimum standard of working conditions for domestic workers in its own country.

"You cannot ask for things from other governments that you are not providing for your own citizens."

"Most destination countries have not been willing to make agreements in regard to domestic workers," she said, citing the fact that a memorandum of understanding last year signed between Indonesia and Malaysia was insufficient in protecting the rights of migrant domestic workers.

"The MOU includes provisions which violate international law and human rights, for example by allowing employers to hold workers' passports. This makes workers dependent on employers and vulnerable to exploitation."

Kejser said the MOU contained no details of basic working standards such as maximum work hours, rest time, minimum wage, as well as access to health services and information.

"Indonesia's agreements with other countries mostly cover only migrant workers in...formal sectors, such as manufacturing. Agreements have yet to include domestic migrant workers."

She cited recent data indicating that 155,000 foreign domestic workers were registered in Malaysia in 2002, 70 percent of them Indonesians.

Director of the newly-established National Agency for the Placement and Protection of Overseas Labor, Ade Adam Noch, agreed: "The government will establish bilateral agreements on migrant domestic workers. However, we need the help of NGOs to put pressure on destination countries in providing protection for our migrant workforce."

He said Indonesia currently had bilateral agreements with Malaysia, South Korea and Jordan.

He said Indonesia hoped to increase the number of its migrant workers from 680,000 in 2006 to at least 750,000 this year.(07)

Workers rally, govt unmoved

2007-07-12T15:54:00.000+07:00

National News - May 02, 2007

The Jakarta Post, Jakarta

Tens of thousands of workers staged noisy rallies in major cities throughout Indonesia on Tuesday to mark International Labor Day and to voice a number of demands around welfare improvement and work safety.

But each of their demands -- which included making a public holiday of May Day, safer working conditions, hikes in basic wages and tax exemptions for low-income families -- was turned down by the government.

"These (demands) are difficult to meet because labor is a profession," Vice President Jusuf Kalla told Tempo Interaktif news portal.

"All professions like farmers, soldiers and teachers (could) also ask for their own national holiday.

"Even journalists will ask for a holiday," he said.

Speaking at a news conference in response to the rallies, Kalla said Indonesia already had 15 holidays -- the highest among Asian countries.

He said contract work, which was widely criticized during the rallies, was a necessary part of many industries.

"It's impossible for companies to have a large quantity of permanent workers," he said.

In Jakarta, trucks carrying workers flocked to the Hotel Indonesia traffic circle where protesters waved red flags, while other workers marched to a heavily guarded Presidential Palace.

Jakarta Police sent more than 20,000 officers to the various landmarks where many protesters had assembled.

In the East Java cities of Surabaya, Sidoarjo, Jember and Kediri, workers protested their poor working conditions and an across-the-board lack of support from employers.

Rallies were held around a number of landmarks in Surabaya, including Grahadi state building and Republic of Indonesia Radio station.

In Sidoarjo, workers employed by a number of big companies assembled at the city's square, in front of the local legislative council.

In Jember and Kediri, workers together with activists from the Independent Journalist Alliance (AJI) emphasized the importance of the struggle for justice in Indonesia.

Workers wages were also on the national protest agenda -- crowds argued that "not much had changed".

Some workers said conditions had deteriorated -- and blamed escalating prices of basic commodities sparked by the hike in fuel prices.

Jamaluddin of the East Java chapter of the Alliance of Struggling Workers demanded the introduction of a standard national wage structure to prevent employers taking advantage of their staff.

"The working contract system or outsourcing, which (is one source of) injustice, has to be wiped out," Jamaluddin said.

Wages in Indonesia are among the lowest in Asia, with a basic monthly salary for a factory worker sitting at about Rp 860,000 (less than US$95).

In Palu, Central Sulawesi, President Susilo Bambang Yudhoyono shared his time informally with hundreds of workers while they gathered for a meal under a tent.

In Bandarlampung, workers strongly criticized the government's labor conditions, which they said did not recognize laborers' needs enough.

Thousands of workers in Semarang, Central Java, entered the Simpang Lima area in stages by motorcycles, public vans and trucks.

They caused traffic jams at a number of points but no clashes with authorities were reported.

Similar rallies were held in other major cities, including Makassar in South Sulawesi, Kupang in East Nusa Tenggara and Palembang in South Sumatra.

Garbage drivers to get back pay

2007-07-12T15:51:00.000+07:00

The Jakarta Post
City News - April 21, 2007

JAKARTA: The city administration is ready to pay long-delayed wages to garbage truck drivers working as contractors for the city's sanitation agency.

Jakarta Sanitation Agency head Eko Bharuna said Friday his office had obtained money last week to pay the wages.

"We will make the payment as soon as possible," he said.

The agency currently has around 9,000 employees, 3,000 of whom are contract workers.

The truck driver contractors have not received their wages for more than three months. Their wage is Rp 29,608 (US$3.25) per day.

Eko said fees also depended on the drivers' workload and the volume of garbage.

"The payment is in accordance with the minimum wage of Jakarta this year."

The minimum wage for the capital is Rp 900,560 per month.

Many drivers complained of having to pay a levy at the Bantar Gebang dump in Bekasi every time they dropped off garbage.

"It's Rp 3,000 for small trucks and Rp 5,000 for the big ones," one driver said.

Eko acknowledged reports of unauthorized fees collected on the trucks' way to the dump and said he had reported the issue to the Bekasi municipal administration. -- JP

RI pays for gender discrimination: UN

2007-07-12T15:27:00.000+07:00

Business and Investment - April 19, 2007

Ary Hermawan, The Jakarta Post, Jakarta

While Indonesia's culture has traditionally been patriarchal, the lack of effort to change that tradition is causing potential losses of about US$2.4 billion to the country annually, a United Nations-sponsored report says.

In its 2007 report titled Surging Ahead in Uncertain Times, the U.N. Economic and Social Commission on Asia and the Pacific (UNESCAP), says that the prevailing culture of gender discrimination in the region, including Indonesia, is costing between $42 billion and $47 billion per year as a result of restrictions on women's access to employment opportunities.

"Indonesia loses about $2.4 billion a year due to inequalities in the labor market participation of men and women," Amarakoon Bandara of UNESCAP said Wednesday during the launch of the report in Jakarta.

The report argues that higher female participation, meaning an increase in the employment rate, would serve to increase the growth rate, with the most significant effects being felt by countries where female labor-force participation has been persistently low.

"Increased employment could boost production, especially in labor-intensive sectors. Higher income from new employment could also stimulate consumption and domestic demand," the report says.

Indonesia's female labor-force participation rate stands at about 51 percent, compared to 85 percent for men. Women account for 42 percent of professional and technical workers, and 17 percent of legislators, senior officials and managers.

These figures place Indonesia in the median range at 67th of the 115 countries surveyed by the 2006 global gender gap index for economic participation and opportunity. The Indonesian figure is slightly better than Malaysia's, but far behind the Philippines, which is one of the top 25 countries covered by the index.

According to UNESCAP, Indonesia should benefit to the tune of $2.4 billion, amounting to an additional 0.56 percent of GDP, if it raised its female labor-force participation rate to the same level as the United States (87 percent).

However, Bandara pointed out that in order to benefit from higher female workforce participation, a country first had to be able to provide jobs and ensure there were no entry barriers keeping women out of the jobs market.

"Women have to be educated first and jobs should be available," he said.

While Indonesia had succeeded in maintaining gender parity as regards enrollment in secondary education, there was still a slight gap at the primary level -- 93 percent for girls against 95 percent for boys. Nevertheless, Indonesia was among the worst 25 in the gender gap index for educational attainment.

StrategicAsia program director Prabowo, one of the speakers at the launching of the report, warned the government of what he called "jobless growth", urging it to implement special programs to reduce unemployment and poverty rates.

He doubted that the government's 6.8 percent growth forecast for 2008 would be enough to provide anywhere near enough jobs to reduce unemployment amid a rapidly swelling labor force.

UNESCAP said it expected the Indonesian economy to grow by 6.2 percent this year, with inflation slowing to around 7 percent.

Tembagapura City Heats Up

2007-07-04T18:48:00.000+07:00

Wednesday, 18 April, 2007 | 15:54 WIB

TEMPO Interactive, Tembagapura: The situation in Tembagapura City, Papua, has become heated following a rally by PT Freeport Indonesia’s employees from Papua.

Yesterday (17/4), around 3,000 employees, who are members of Tongoi—an organization of Freeport workers of Papua origin—marched 64 kilometers to the Gorong-gorong Bus Terminal, Tembagapura.

This action was taken after PT Freeport’s management prohibited them from using the employee buses.

From the bus terminal, they headed to the Mimika Provincial Legislative Council (DPRD) building to join other employees who had arrived earlier.

It was planned that the employee will carry out a major rally by marching to Kuala Kencana City square today.

Since Monday (16/4), PT Freeport Indonesia’s employees in several departments have been demanding salary rises of up to 250 percent.

In addition to salary rise, they have also called for an end to discriminative treatment against workers from Papua.

“We proposed 27 resolutions,” Silas Natimey, Tongoi’s Deputy General Chairman, told Tempo in Timika.

DPRD Timika actually tried to bridge the employees’ demands with the company’s management by holding a meeting at the DPRD building two days ago.

However, PT Freeport Indonesia’s management was only represented by the Vice President for Industrial Relation, Hersubeno.

Mindo Pangaribuan, spokesperson for PT Freeport Indonesia, stated that the company has accommodated the aspirations of the employees’ who are members of Tongoi.

“We have answered them all, in person or written, to the management,” he said when contacted by Tempo.

TJAHJONO EP | POERNOMO G RIDHO

Mining giant board members a no-show

2007-07-04T18:42:00.001+07:00

National News - April 17, 2007

Markus Makur, The Jakarta Post, Timika

Gold and mining giant PT Freeport Indonesia failed to attend a meeting Monday regarding their native employees' welfare needs in Timika, Mimika regency, Papua.

But Freeport's government relations manager Jhoni Lingga said Freeport boardmembers failed to attend the meeting with Tongoi Papua because they were busy preparing for a meeting on Tuesday with the same group.

Tongoi Papua is an informal organization that facilitates communication between companies and native Papuan employees.

While some representatives from Freeport attended the Monday meeting, the invited boardmembers were a no-show, a local councilor said.

Freeport spokesman Mindo Pangaribuan said Tongoi Papua had already conveyed to management the employees' requests and that these were currently being evaluated.

The meeting Freeport boardmembers failed to attend Monday was sponsored by members of Mimika's local legislative council.

But legislator Stefanus Rahangiar said Freeport management paid no attention to the council's invitation to help find a solution to the employees' needs.

"The demand for a salary increase raised by Tongoi Papua is being discussed with the labor union at Freeport," Rahangiar said.

"A threat from Tongoi Papua that employees will go on strike (has been put in writing) to management as well," he said.

Chairman of the local council, Yoseph Yopi Kilangin, said Freeport was not serious about their native employees' wants or needs because they had for 40 days made no response to Tongoi Papua.

"The fact is that Freeport management sent only its representatives to the (council-sponsored meeting)," Kilangin said.

"(When there is an) internal problem, the company's (upper) management should settle it as soon as possible."

Reebok maker owes billions to employees

2007-07-04T18:18:00.000+07:00

The Jakarta Post
City News - April 17, 2007

TANGERANG: More than 6,500 employees from Reebok shoe producer PT Dong Joe Indonesia staged a rally at the company's Tangerang factory Monday in demand of close to RP 100 billion in unpaid salaries and severance pay.

The employees were suspended and have not been paid since September because of the company's apparent financial constraints, Ismail, chairman of the Indonesian National Workers Union (SPN), said.

Manpower agency head, Hasdanil, said company operators, known only as Cheon and Kim, suddenly halted factory operations last year and left for their homes in South Korea.

"Based on a previous agreement signed at the Jakarta Commercial Court, company management and workers agreed to terminate employee relations starting (Monday)," Ismail said.

The court declared the company bankrupt on December 7 last year and Bank Rakyat Indonesia has been appointed to auction company assets between March 21 and May 21 this year.

The company owes the workers Rp 26.2 billion in unpaid salaries and Rp 69 billion in severance pay.

Factory manager Harold Kussler said remaining assets on the site included the company's land, buildings and machinery.

"The shoes produced until September are too damaged to be sold," Kussler said.

"Based on the explanations given by several managers at the factory, there were no signs that the company would go bankrupt -- but the two bosses suddenly halted the production and left the country," Hasdanil said. -- JP

Journalists protest over recurring violence

2007-07-04T18:06:00.000+07:00

National News - April 17, 2007

Apriadi Gunawan, The Jakarta Post, Medan

Journalists from different media organizations in North Sumatra rallied Monday at the provincial legislative council in Medan to draw attention to the fate of one of their colleagues, who has been in police detention for nearly a month.

Medan Bisnis daily reporter Samsudin Harahap, 45, has been detained by police in the city of Pematang Siantar, about 80 kilometers from Medan, since March 22, after allegedly being physically assaulted by military soldiers and public order officers.

The protesters accused authorities of assaulting and locking up Samsudin because they objected to his coverage of their policies.

Samsudin's wife, Siti Hawa, 42, who took part in the protest, said her husband went to the official residence of Pematang Siantar Mayor RE Siahaan at 11:30 a.m. on March 21, to confirm a story he was writing.

Siti said her husband avoided security guards and entered the house without permission, because he was having trouble pinning the mayor down for confirmation.

She said Samsudin was able to meet the mayor, after which he apologized for entering the house without permission. Samsudin reportedly left the house, but a short time later was contacted and asked to return to meet the mayor again.

However, when he arrived at the mayor's house this second time, Siti said her husband was seized and held at the security post. She claims several plainclothes military personnel and public order officers arrived at the house and assaulted Samsudin.

Siti said when the incident occurred there were three other journalists at the scene, but police only arrested Samsudin.

"I demand my husband be freed. This is not fair because he is the victim of a conspiracy between state officials in Pematang Siantar," Siti told The Jakarta Post.

Edrin Adriansyah, from the Legal Aid Institute for the Media, said what was happening to Samsudin was an attempt by local officials in Pematang Siantar to silence the press.

Managing editor of Medan Bisnis, Erwinsyah, said Samsudin was a sharp journalist who often wrote critically of the policies of the mayor, including reporting on a 21 percent cut in project funds, a policy that upset contractors in Pematang Siantar.

The newspaper also reported on an alleged conspiracy surrounding the tender for the renovation of the Pematang Siantar General Hospital, with the mayor's name coming up in connection with the case.

Nine Thousand Bank Workers at Risk

2007-07-04T18:00:00.000+07:00

Monday, 16 April, 2007 | 15:20 WIB

TEMPO Interactive, Jakarta: The All-Indonesia Organization of Workers (previously the Association of Financial Workers Union) has estimated that around 9,000 bank workers are threatened with being laid-off this year.

This means that there could be an 800 percent increase in the number of laid-off bank workers, compared to last year’s figure of 1,000 persons.

The firing is line with the issuance of Bank Indonesia policy on a single presence policy.

According to Yanuar Rizky, the President of the All-Indonesia Organization of Workers, the number of 9,000 persons was based on the calculation of operational costs and performance operational revenues of banks during 2006.

“With the coming into force of the policy, banks cannot help but, especially those owned by foreigners, have to reduce the number of workers,” Yanuar told Tempo on Saturday (04/14).

However, he said he considered that the single presence policy had been slightly delayed because many banks in Indonesia are owned by foreigners.

So that the lay-offs will mainly occur in private banks owned by foreigners.

“In particular those whose shares are owned by Singapore (Temasek),” said Yanuar.

Some private foreign banks operating in Indonesia and having the same owners include PT Bank Danamon and PT Bank Internasional Indonesia—owned by Temasek Holding, Singapore—and PT Bank Niaga and PT bank Lippo—owned by Khazanah Berhard, Malaysia.

According to Yanuar, of the private foreign banks, Bank Danamon is estimated as having to lay-off the most.

“Around 4,000 persons will be laid-off gradually. This already had started last year with 450 people,” he said.

“BII has also planned to reduce its workers by 3,000 people.”

Irawati Koswara, Corporate Secretary of Bank Danamon, denied that the bank will carry out lay-offs on such a large scale.

On the contrary, the company will recruit a large amount of workers.

Director of BII Sukatmo Padmosukarso has also denied the information that the company will lay-off thousands of its employees.

“We have no plans to reduce the number of our employees, especially not 3,000 people,” said Sukatmo.

SURYANI IKA SARI

Unions oppose severance pay scheme

2007-07-04T17:58:00.000+07:00

National News - April 16, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Labor unions have promised to oppose a government proposal to provide an alternative severance payment scheme that is smaller in amount than required under labor law.

They were responding to a government plan to issue a regulation on a new severance pay scheme, to replace the one outlined in the 2003 Labor Law.

The Confederation of Prosperous Labor Unions (SBSI), the Confederation of All-Indonesian Workers Unions (KSPSI) and the Indonesian Confederation of Trade Unions (ICTU) said the government could not pass a severance payment scheme that paid less than required in the 2003 law.

"The government should drop the plan because it could cause political instability on the eve of Mayday (Labor Day on May 1). The issuance of such a severance payment scheme will certainly spark strong opposition from workers," KSBSI chairman Rekson Silaban told The Jakarta Post on Sunday.

He said if it was worried about businesses, the government should subsidize employers to enable them to make severance payments in accordance with the law.

"The government could use the dividend from state-owned insurance company PT Jamsostek and part of the government's revenue from other state-owned enterprises to help employers make severance payments to dismissed workers," he said.

KSPSI deputy chairman Syukur Sarto said every major union in the country agreed the government's planned severance payment scheme would be bad for fired workers.

"Employers have protested the (2003) law, which requires them to pay dismissed workers up to 32 times their basic salary, because it has been overwhelming for them financially. They would not have that problem if they started saving for severance pay from when they hire workers," he said.

ICTU chairman Bambang Wirahyoso warned the government against stepping on the rights of laid off workers, saying it could have to pay a high political price.

"If the government goes ahead with the plan, millions of workers will take to the streets to protest it this Mayday, as they did last year. If the Labor Law is revised, it means selling Indonesian workers into a new form of slavery in the name of foreign investment," he said.

President Susilo Bambang Yudhoyono said after briefing Manpower and Transmigration Minister Erman Suparno and Industry Ministry Fahmi Idris here last week the government wanted to issue the regulation to prevent employers from being unable to afford to dismiss workers.

Employers have proposed financing a program at PT Jamsostek to cover labor dismissals, on the condition that only workers paid up to Rp 1.500,000 (about US$165) monthly receive severance pay.

Secretary-general of the Indonesian Employers Association (Apindo), Djimanto, said the government had the authority to make an alternative severance payment scheme.

"The (labor) law mandates the government to issue a government regulation on an alternative (severance payment) scheme if employers are found unable to make severance payments as high as required by the law."

Manpower Decree Judicial Review Rejected

2007-07-04T17:47:00.000+07:00

Friday, 13 April, 2007 | 13:21 WIB

TEMPO Interactive, Jakarta: The Constitutional Court rejected the judicial review request of Article 39 letter a Decree No. 39/2004 yesterday (12/4) on Indonesia's Employee Protection and Placement. The constitutional judge considered that the request was baseless. “So it must be turned down,” said the judges' panel chairman, Jimly Asshiddique, during the constitutional trial in Jakarta.

The judges' panel regarded the grounds that the state must protect the citizens and their interest has been a universal principle. The obligation is also acceptable in international law. The limitation of a working age is also universal. So the panel considered that the state has the right to limit someone's working age based on the person's character and emotional maturity.

The judicial review of Decree No. 39/2004 was proposed by several Indonesia's employee candidates: Esti Suryani (20), Martina Septi Mayasari (19), Deniyati (20), Sumiyati (20) together with the Indonesian Manpower Watch. The employee candidates cannot work abroad under 21 years old.

They assumed that the working age limitation is discrimination against employee candidates under 21. This is regarded as violating the citizen's constitutional right of a decent job and living, the right to work with payment and fair also proper treatment while working.

The court also rejected it based on the Constitutional Panel Decision No. 019-020/PUU-III/2005 on the principle of protection for citizens working abroad. The age limitation is to be able to prevent the practice of employing under-age children.

However, judges Laica Marzuki, Abdul Mukhtie Fadjar, Maruarar Siahaan and Harjono had different opinions. Laica said there is not any guarantee of character and emotional maturity at the age of 21 that can prevent the employee from sexual harassment risk. “The lawmaker's consideration contains unreasonable distinctions,” he said.

RINI KUSTIANI

Employees of Freeport mine threaten strike

2007-07-04T17:30:00.000+07:00

National News - April 13, 2007

Markus Makur, The Jakarta Post, Timika

Employees of gold and copper mining giant PT Freeport Indonesia threatened Thursday to stage a peaceful strike next Wednesday, urging company management to pay more attention to their welfare, especially with regard to wages and benefits.

Their demands include employee development for native Papuan employees and are the result of discussions with Tongoi Papua, an informal organization that facilitates communication between any company and native Papuan employees.

Tongoi Papua chairman Frans Pigome told reporters at the Mimika Police station he was coordinating the strike with the help of local police.

He said Tongoi Papua representatives had met with PT Freeport management three times and that they had been left no other choice but to strike.

"We met again with PT Freeport management on April 5, but by April 6, which was our deadline, we had still received no response," Pigome said.

"Our aspirations are not only for Papuan employees -- we are interested in supporting change for all employees.

"We've met with PT Freeport's association of Indonesian workers, which fully supports our plan to go on strike," he said.

But PT Freeport spokesman Mindo Pangaribuan said Thursday Tongoi Papua submitted a report from the Tongoi Papua convention to PT Freeport management and that the company had delivered a response through the correct industrial relations channels.

This response was in line with PT Freeport's industrial relations efforts and their commitment to all employees, Mindo said in a statement.

"Wages and benefits are among the main topics of discussion with the workers' union, as provided under the prevailing legislation," Mindo said.

He said PT Freeport Indonesia was committed to continually advancing its native Papuan employees and ensuring numbers of native Papuan employees occupying senior positions within the organization grows.

"To this end, the company is to run two programs for native Papuans -- a new graduate program and an apprenticeship program at the Nemangkawi Mining Institute," he said.

The programs will focus on the selection and development of native Papuans with the potential and skills to succeed in professional work.

Mindo said in the last 10 years, the native Papuan workforce at PT Freeport had increased significantly.

In 1996, there were approximately 800 native Papuan employees and by January 2007, this number had climbed to more than 3,000, including apprentice program participants at the Nemangkawi Mining Institute, Mindo said.

"This meets the commitment PTFI made back in 1996, but these efforts will continue, because that commitment long ago became basic policy."

SBY wants new severance pay program

2007-06-13T18:02:00.000+07:00

National News - April 12, 2007

M. Taufiqurrahman, The Jakarta Post, Jakarta

The government has announced plans to allow insurance companies to take part in providing severance pay to workers.

Manpower and Transmigration Minister Erman Suparno said Wednesday that the government was drawing up a regulation that would allow the participation of private companies in providing payments to laid-off workers.

"Apart from state-owned insurance company PT Jamsostek, whose participation in the program is mandated by a 1992 law on social security, we want multiple providers in the program and we are preparing a government regulation for that," Erman told reporters.

Erman and Industry Minister Fahmi Idris met President Susilo Bambang Yudhoyono on Tuesday to deliver a progress report on the tripartite discussions on the new regulation.

In the meeting, Yudhoyono called on all sides in the talks to quickly decide on a scheme that would be beneficial to the country's workers.

Government officials, along with workers' representatives and employers are taking part in the talks.

Erman said that the new scheme would supplement the existing plan, which covers health, accident, death and pension funds.

The minister earlier said that no private companies would be able to manage the new dismissal benefit as the government had entrusted PT Jamsostek to ensure job security among workers.

Vice President Jusuf Kalla have said that the government could privatize the planned scheme.

Indonesia has the second highest retrenchment costs in Asia, after Sri Lanka.

Companies in Indonesia have to pay 32 months of wages to fire workers employed for 20 years or more.

In Sri Lanka, employers have to pay severance equivalent to 46 months of salary.

In China, employers are required to pay a month's salary for every year of work.

An official with PT Jamsostek earlier proposed that the dismissal benefit program should only cover workers with monthly wages of less than Rp 2 million (US$219.6).

Data from the Central Statistics Agency says that 97 percent of the country's labor force were paid less than Rp 2 million per month.

The government's efforts to amend the 2003 Labor Law, including severance pay plans, have met with resistance from labor unions, which say they would deprive workers of many of their rights.

The protests have prompted Yudhoyono to ask academics from five state colleges to assess the labor law.

Their preliminary report has said that severance pay in Indonesia is too high and needs to be cut.

Dead worker's body remains in Taiwan

2007-06-13T17:56:00.000+07:00

The Jakarta Post
National News - April 11, 2007

JAKARTA: A poor couple from the East Java town of Blitar have called on the government to repatriate the body of their daughter, Eka Yuanita, who died at her workplace in Taiwan on March 1.

Expressing his anger about the silence from relevant authorities, Eka's father Mudjito said both the government and the newly-established National Labor Export and Protection Agency (BNP2TKI) had failed to take responsibility for the case.

"One month and nine days after the information on her death reached us, my daughter's corpse is still in Taiwan and we are seeking a guarantee on when the body will be repatriated and information on the cause of her death," he said.

Eka, who worked as a housemaid for a Taiwanese family, was found dead in the house of her employer with electrocution wounds on her legs.

Executive director of Migrant Care, Anis Hidayah, who is helping Mudjito to seek information on the case, called on the government to coordinate with PT Danamon Wahana Tenaga Kerja, who sent Eka to Taiwan in September 2006, to bring her body home, investigate the death and pay the victim's insurance claims.

BNP2TKI Chairman Jumhur Hidayat was not available to comment on the incident.

According to Migrant Care's data, at least nine Indonesian workers, mostly females, have died overseas during the past four months. -- JP

Workers at three state firms lack insurance

2007-06-13T17:47:00.000+07:00

National News - April 04, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

State-owned insurance firm PT Jamsostek called on the State Ministry for State Enterprises on Tuesday to require three state-owned companies to register their employees with social security programs.

The three companies were state electricity company PT Perusahaan Listrik Negara, railway operator PT Kereta Api and postal service provider PT Pos Indonesia.

"The three state-owned companies should register thousands of their employees nationwide with Jamsostek to set a good example to private companies in their compliance with the 1992 Social Security Law," Aufa Azis Chan, chief of Jamsostek's Jakarta office, said here.

Of the 169 companies owned by the government, only the three companies are yet to insure their employees, he added.

Asked why Jamsostek had not brought the case to court, Aufa said Jamsostek did not have the investigative authority, while the Manpower and Transmigration Ministry was yet to enforce the law.

"We have already brought the three cases to the manpower and transmigration minister and to the labor commission at the House of Representatives... but no action has been taken so far," he said.

He said that in implementing the social security program, the participation of big companies was much needed as their contributions would be used to support small- and medium-scale companies through cross-subsidies.

The director general for industrial relations and labor standards at the Manpower and Transmigration Ministry, Suwito, said he had requested the Manpower and Transmigration Ministry to bring the cases involving the three companies to the cabinet ministerial meeting for further discussion.

He said the three companies had no reason not to register their employees with Jamsostek because social security programs were compulsory for private and state enterprises employing 10 workers or more.

Separately, chairperson of the House's labor commission Ribka Tjiptaning said her commission had repeatedly asked Manpower and Transmigration Minister Erman Suparno to sue companies that violated the law.

"The central government and local administrations should coordinate to enforce the law and impose sanctions on companies violating the law. Social security programs are necessary to protect workers because most workers are underpaid and are not covered by commercial insurance," she said.

House questions govt dividens from Jamsostek

2007-06-13T17:39:00.000+07:00

National News - March 13, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The labor commission at the House of Representatives has questioned the annual dividend paid to the government by state-owned workers' insurance company PT Jamsostek.

Deputy chairman of the labor commission Bursa Syarnubi, who presided over a hearing with Jamsostek management on Monday, said it was unethical for the government to receive annual dividends from Jamsostek even though it was a state-owned company.

"As the government has only Rp 2.77 billion (US$307,000) in initial shares in Jamsostek, it has no right to receive up to 35 percent of the company's annual profits.

"Jamsostek's assets of some Rp 47 trillion belong to workers and the company's income from investments should be utilized to maximize the social security programs' benefits to improve workers' social welfare."

Bursa said the labor commission would ask the government to stop taking the annual dividend and instead add it to the company's assets to allow the company to provide maximum benefits to the workers.

The government received 35 percent, or Rp 22 billion, of the company's profits in 2005 and is expected to receive a similar amount from the company's 2006 profits. The government has received annual dividends from Jamsostek since 1993.

Bursa also said his commission received no reports from the Finance Ministry on what the money was used for.

Jamsostek president director Hotbonar Sinaga said like other state-owned companies, Jamsostek was required to pay an annual dividend to the government and that the amount was decided at its annual stakeholder meeting.

"The amount can vary depending on the company's annual profits," he said.

The labor commission also asked the Manpower and Transmigration Ministry to enforce the social security program to law and make private and state enterprises register their workers with Jamsostek.

"The persuasive approach is no longer relevant as the social security law has been effective for 14 years. The government must start enforcing the law and punish companies that fail to register their workers with Jamsostek," said Bursa.

Almost 90 percent, or 28.9 million of the 34 million workers employed in the formal sector, have been registered with Jamsostek but only 30 percent, 7.7 million, remain active members, due to the prolonged economic crisis.

Hotbonar said Jamsostek had no authority to enforce the law. Instead, it was approaching the informal sector, which employs and estimated 70 million people.

"Jamsostek has enhanced cooperation with provincial and regional administrations to provide social security programs for workers in the construction sector," he said.

"We are also approaching farmers groups and cooperatives, fishing communities and becak drivers to join social security programs."

Hotbonar had earlier pledged to apply good corporate governance and transparency in leading Jamsostek, saying the new management would be transparent in managing its assets, in accordance with a 2004 government regulation on investment.

Migrant workers key issue in RI-Malaysia relations

2007-02-27T18:31:00.000+07:00

World News - February 26, 2007
Apriadi Gunawan, The Jakarta Post, Medan

The Indonesian Foreign Ministry on Saturday identified migrant workers as the most crucial of some eight issues that have the potential to strain relations with neighboring Malaysia.

Foreign Ministry director for East Asia and the Pacific, Yuri Thamrin, said here these eight issues included border differences in the Malacca Strait, South China Sea and Sulawesi Sea, as well as terrorism, haze and illegal logging.

"Out of the eight problems, the issue of migrant workers has the most potential to cause tension between the two countries. There are two million Indonesian migrant workers in Malaysia, and every year they have problems.

"That's why both countries should commit to provide better protection for them to prevent the issue becoming a spat that can hurt bilateral relations," Yuri said here Saturday, on the sidelines of a seminar to remember Adam Malik, Indonesia's diplomatic doyen, and to commemorate the 50th anniversary of Indonesia-Malaysia relations.

Yuri said the 50th anniversary of relations was a good time to draw up a road map to solidify bilateral ties that are mutually benefits for both countries.

He cited tourism, education, health and trade as area with a lot of potential for mutual cooperation.

The seminar, which was opened by the ministry's director general for Asia, Africa and the Pacific Primo Alui Joelianto, also featured several speakers from universities in Indonesia and Malaysia.

Mohamed Mustafa Ishak of the University of Northern Malaysia said Jakarta and Kuala Lumpur should give more attention to defense cooperation.

"From several aspects of cooperation, defense relations become more complicated because of border trespassing, smuggling, terrorism and forest burnings. Probably, both countries should include non-state actors to play a role in addressing these non-traditional security issues," he said.

According to Yuri, Indonesia-Malaysia relations in trade and investment are continuing to grow, with Indonesian exports to Malaysia jumping by more than 25 percent last year to US$3.5 billion, and its imports rising by 32 percent to $2.4 billion.

Malaysia also is one of Indonesia's biggest foreign investors, with approved investment at more than $2.2 billion in 2006, Yuri said.

Jamsostek vows to resist all interference

2007-02-27T18:29:00.000+07:00

National News - February 23, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

The newly appointed board of directors of state-owned workers' insurance company PT Jamsostek vowed Thursday to implement good corporate governance in managing the company and promised to resist external intervention.

"The new management is committed to applying good corporate governance with the sole mission of improving the social welfare of workers participating in this social security program," Jamsostek president director Hot Bonar Sinaga said at a press conference.

"We will stick to principles of prudence and transparency to multiply the company's investment yields and its return to workers."

He was reluctant to call the new board of directors a winning team, but said they would prove themselves in managing the company's assets totaling almost Rp 50 trillion (approximately US$5.55 billion).

Bonar, a lecturer at the University of Indonesia's School of Economics and former chairman of the Indonesian Insurance Council, was appointed to replace Iwan Pontjowinoto following a leadership crisis in the company six months ago.

Besides Bonar, two other economists from the university were named directors. Indraswasi and Dewi Anggraeni were named director of investment and director of risk management and compliance, respectively.

Four other members of the board of directors were appointed internally. Achmad Ansyori was named director of operations and service, Suyono director of IT and planning, Myra S. director of finance and Rahmaniah Hasdiani as director of human resources and general affairs.

Bonar said his team would be tough and transparent in their negotiations with banks and securities companies in investing the company's assets.

"We will freeze deals with banks and securities companies trying to pay kickbacks to their managements," said Bonar.

He also warned third parties, including public officials, political parties and generals, against extorting Jamsostek, saying such interferences would be rejected.

"Third parties should not interfere in the company's internal affairs because the company's assets belong to workers to insure them in cases of occupational accidents, death, healthcare and retirement," he said.

Meanwhile, chairwoman of the law commission at the House of Representatives, Ribka Tjiptaning, welcomed the new management's commitment to improving the social welfare of workers, saying her commission would closely supervise their performance.

She also said her commission would soon revise a 1992 regulation on social security programs to set up a trust fund council to take over the government's role in the company and to allow the company to not pay annual dividends and investment taxes to the government.

Teachers to receive new allowances

2007-02-27T18:13:00.000+07:00

National News - February 20, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

The government will pay a functional allowance to teachers at state-run schools and increase that paid to religious teachers at private schools, ministers told the House of Representatives on Monday.

Education Minister Bambang Sudibyo told the House's education commission that teachers on the lowest rank would receive an allowance of Rp 100,000 per month.

"The government will first pay the functional allowance to more than 169,000 teachers, who are also civil servants," he said.

"Teachers on the second rank will receive Rp 286,000 per month, those on the third rank Rp 327,000 per month and those on the fourth rank receive Rp 389,000 per month."

Bambang said the government had allocated Rp 111.2 billion to pay the functional allowance for teachers this fiscal year.

Despite being late, the government's announcement was praised by the education commission, which said the move had been long awaited.

"The situation of most teachers, especially those teaching religious ethics at Islamic schools, is still far from the standard. (The religious teachers) are paid Rp 50,000 to Rp 70,000 monthly and this is not enough to cover transportation cost to their workplace," said House education commission chairman Hazrul Azwar.

Religious Affairs Minister Maftuh Basyuni told the commission that as of this fiscal year, more than 556,000 teachers at Islamic educational institutions would receive an increase on their allowances, which would rise to Rp 200,000 per month, up from Rp 115,000.

Cyprianus Aoer, a member of the commission, asked the government to revise the budget in other sectors so that 20 percent of the total state budget could be spent on education.

"The government must make a long-term investment in the education sector to fix the quality of the country's human resources," he said.

"The country will lose the competition in the global economy unless such an investment is made in the education sector now."

The government has allocated 11 percent of the budget to education.

New PT Jamsostek board welcomed

2007-02-20T22:15:00.000+07:00

National News - February 19, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Employees of state-owned workers' social insurance company PT Jamsostek have praised the company's new board of directors.

"Jamsostek Workers Union has high hopes of the new management, which consists of professionals and fresh insurance practitioners with good records in the insurance business.

"The new management is expected to be able to settle all the internal problems and improve the company's financial performance and contribute to Jamsostek's participants," union chairman Abdul Latif Algaff told The Jakarta Post on Sunday.

To end a leadership crisis at Jamsostek, the government held an extraordinary shareholder meeting on Friday, which made the decision to replace the boards of directors and commissioners.

Former chairman of the Indonesian Insurance Council Hotbonar Tua Sinaga was named president director, replacing Iwan Pontjowinoto, who decided to resign. Ansyori was named director of operation and service affairs, Hanni Ramaniah as director of human resources, Myra S.R. as director of finance and investment and Suyono as director of IT, planning and development.

Ansyori was previously chief of Jamsostek's regional office overseeing North Sumatra, Aceh and West Sumatra provinces, Hanni chief of the human resources affairs bureau and Suyono was the company's corporate secretary.

The meeting also appointed former president director of state-owned airline company PT Merpati Nusantara Wahyu Hidayat as chief commissioner and Syukur Sarto, deputy chairman of the Confederation of All-Indonesian Workers Union and Rekson Silaban, chairman of the Confederation of Indonesian Prosperous Labor Union as commissioners representing workers. Deputy chairman of the Indonesian Employers' Association (Apindo) Haryadi Sukamdani was named commissioner representing employers.

The extraordinary shareholder meeting was held in response to the no-confidence motion raised by the union to replace Iwan, who was accused of violating the company's internal rules.

Apindo Secretary General Djimanto said the association appreciated the government's decision to promote professionals to the board of directors.

"The new management is expected not only to improve the company's financial condition but also to pay more attention to the workers' social welfare," he said.

Apindo, however, was disappointed by the appointment of only one commissioner from the employers, which contributed ten percent of workers' premiums to the social security programs.

Chairperson of the labor commission at the House of Representatives Ribka Tjiptaning slammed the appointment of an outsider to lead the company, saying Hotbonar's appointment was based on more political than professional considerations as the commission had been asking the government for some time to appoint the company's president of directors from the labor unions or employers.

Problematic workers returned from Johor

2007-02-20T22:11:00.000+07:00

The Jakarta Post
National News - February 17, 2007

BATAM, Riau Island Province: The Indonesian Consulate General in Johor Bahru, Malaysia, has returned 101 problematic workers to Batam, an official said.

Supriyanto, a staff member of the consulate general, said Thursday the returned workers consisted of those who had recently completed jail sentences due to immigration problems and criminal activities.

The 101 workers returned through Gudang Pasir port in Malaysia to Batam Center port. They consisted of 22 women and 79 men. They had each been imprisoned at Kluang penitentiary in Johor for between two and eight months.

Supriyanto said the number of returned Indonesian workers had thus far reached 1,200.

"There are around 1,000 more Indonesian workers still jailed for similar offenses in line with the Malaysian government's determination to take stern measures (against violators of its immigration regulations)," he said.

The workers were given temporary accommodation at the Batam Social Service Office before being sent to their home towns. -- JP

New program empowers domestic helpers

2007-02-20T22:10:00.000+07:00

National News - February 17, 2007
Indra Harsaputra, The Jakarta Post, Surabaya

The Sanggar Alang-Alang and Save the Children social groups have set up a "Guidance Course for Young Female Workers" education program, designed specifically for domestic helpers working in a number of up-scale housing complexes in Surabaya.

The program was established in the hope that the knowledge and skills acquired could help minimize violence against child workers and raise their ambitions for a better life.

As part of the program, Irma, 19, a maid from Nganjuk, intently listened to English lessons conducted by Natasya Cassinath, 33, a volunteer teacher from the Canadian-based Street Kids International. The lesson was delivered in a meeting hall in an upper class residential area in Darmo, Surabaya.

After finishing junior high school, Irma worked as a shop attendant in Mojokerto, earning a monthly salary of Rp 200,000 (about US$23).

Her poverty meant she began working at a young age rather than continue with her studies. Irma's father is a farm hand who earns around Rp 600,000 per month, a meager sum to provide sustenance for four children. Her mother is a housewife.

"I prefer living in the village because it's more peaceful there compared to life in the city. But I've no skills in farming and there is a lack of job opportunities in the village. I set aside some of my salary for my family at home," she told The Jakarta Post.

A man once offered Irma an opportunity to earn a higher salary as a migrant worker in Malaysia, but her parents prevented her from pursuing this option after learning about migrant workers from the village who had been abused overseas.

Irma now works as a babysitter in an up-scale housing complex in Surabaya, earning a monthly salary of Rp 400,000, and is provided with three daily meals.

Like Irma, Susilawati, 18, another housemaid from Ploso, Jombang, East Java, was an elementary school graduate forced to work at a young age due to economic hardships at home. She had no farming skills and her parents also prevented her from becoming a migrant worker.

She does household chores, such as cleaning furniture, and has to be ready to meet her employers' every need all day round. She gets Rp 320,000 per month, plus three daily meals. Despite the lack of a fixed working contract, she receives an Idul Fitri holiday bonus once a year.

"I'm glad about the education program because I can acquire skills and knowledge. I wish to become a rich person so that I can help my family at home. But I prefer to work more so than study so I can earn money," she said.

The education program's director, Didit Hape, said the idea of setting up the course was brought about by the large number of abuse cases against child workers in Surabaya.

On Feb. 14, Valentine's Day, Didit visited a domestic maid who had to deliver a baby without help from a doctor or health worker in a hut in a slum area along the Wonokromo River. The 17-year-old woman was dismissed by her employers after they learned she was pregnant. She was given no money for the delivery. She did not return to her hometown due to the shame of being pregnant out of wedlock, while the man who impregnated her had shunned responsibility.

"In the squalid hut, the woman groaned in pain. I tried to call the doctor, but she died after giving birth to the baby before the doctor arrived," Didit said.

The baby is in Didit's care now. "I named it Mohammad Galang Valentino. The Mohammad came from Prophet Mohammad who was born an orphan, and Valentino indicates the baby was born on Valentine's Day," Didit said.

Yuliana Acut, 11, from Flores, East Nusa Tenggara, was exposed to abuse as a child after becoming a domestic helper at her own uncle's house. Yuliana was rushed to the hospital suffering wounds to her head after her uncle, who is also her employer, had beaten her. She now stays at the Sanggar Alang-Alang shelter in Surabaya.

"Yuliana's is a tragic case because both her parents do not care to know her whereabouts. They have 15 children and live in poverty in Flores. I'm still probing the case which I believe involves child trafficking," Didit said.

Didit said underaged workers were not protected by law. "As a worker, she should be paid according to the regional minimum wage, but the Child Protection Law doesn't allow children below the age of 17 to work," he said.

"We have a number of maids who are still below 17 attending this program. It's very difficult to gather and organize a group of maids to participate because most of the employers are uneager to allow their maids to group together and attend the course due to their workload. They are afraid they would reveal family secrets and wealth outside," Didit said.

Some 90 participants are now enrolled in the program. They should attain written approval from their employers before joining the course. The program, initiated in February 2006, teaches participants English, as well as general knowledge and sewing skills.

ILO calls on govt and schools to reduce child labor

2007-02-20T22:08:00.000+07:00

National News - February 16, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

The International Labor Organization (ILO) urged the government to take a comprehensive approach to eliminating the worst forms of child labor, with schools playing a key role in keeping children out of work.

The organization has set up a partnership with the government and other stakeholders to design school-related schemes to bring down the current figure of 3.2 million children in work.

"In cooperation with the World Bank, the ILO has supported the government's conditional cash transfer scheme to encourage poor families to send their school-age children to school, withdrawing child laborers from risky workplaces," ILO media officer Gita Lingga said Wednesday.

Gita added that the organization was also proposing to the Education Ministry that it focus part of its school funding, known as the school operational allowance, on enabling poor families to send their children to school.

"The ministry has accepted the ILO's comprehensive approach to empowering poor families to afford expensive education and to help make the nine-year compulsory education program a success," Gita said.

ILO said that child labor numbers are expected to multiply, reflecting the prolonged economic hardship affecting 19.2 million poor families.

More school-age children are becoming involved in the worst forms of child labor, such as prostitution and drug trafficking.

A 2005 study by the Atmajaya Catholic University in Jakarta found out of 500 drug users aged up to 18 studied, 92 percent were also involved in drug trafficking, with 94 percent of them being boys.

According to the ILO's 2002-2003 assessment, more than 28,000 women work as sex workers in Jakarta with 5,100 of them aged below 18.

Another ILO spokesperson, Abdul Hakim, said the organization was speaking with the Confederation of Indonesian Prosperous Labor Unions, the All-Indonesian Workers Union and the Indonesian Trade Union to improve their participation in monitoring the implementation of the school operational allowance scheme, to ensure it was reaching its intended beneficiaries.

"The ILO has also enhanced cooperation with civil society to provide vocational training, open elementary and high schools for under-18-year-old children and to move child laborers from risky employment to safe employment.

In the last two years, the ILO and NGOs have been concentrating on withdrawing child laborers in risky jobs in the mining, fishery and manufacturing sectors in North Sumatra, Jakarta, East Java and East Kalimantan," he said.

To enforce the ILO convention on the elimination of the worst forms of child labor, Indonesian labor laws and the child protection law, the Manpower and Transmigration Ministry has set up a national committee for the elimination of child labor. The Ministry will use its provincial branches to encourage local governments to step up their efforts to tackle child labor.

Migrant workers want age limits dropped

2007-02-20T22:06:00.000+07:00

National News - February 16, 2007
The Jakarta Post, Jakarta

Lawyers filing a judicial review of the law on migrant workers said Thursday that anyone over the age of 18 should be allowed to find a job overseas without the help of a manpower recruitment agency.

The limitations placed on people under the age of 21 seeking to work abroad, as stipulated in the law on the placement and protection of migrant workers, violates people's right to find employment, lawyers Sangap Sidauruk and Kurnia Wamilda Putra told the Constitutional Court.

"A person's psychological and emotional maturity are not a matter of whether they have already reached the age of 21. There are people who are not 21 who are emotionally and psychologically mature," Sidauruk said.

Kurnia said if authorities wanted to determine the emotional maturity of workers, they should give them psychological tests.

He also told the court that the article in the law stipulating that anyone who wants to work for an individual employer, such as housemaids, must be at least 21 is discriminatory and violates the 1945 Constitution, which guarantees all citizens the right to work.

The article does allow people who are at least 18 years old to work overseas, but until they are 21 they must go through a manpower agency.

The lawyers are representing a group of migrant workers between the ages of 18 and 20. They have asked the court to review the article in question, as well as another section of the law that says anyone who wants to go abroad as a domestic worker must be "emotionally mature", to prevent the possibility of being sexually harassed while on the job.

Sidauruk said, "Sexual harassment, in fact, is experienced mostly by those over the age of 21."

Manpower and Transmigration Minister Erman Suparno, who was present at the hearing, said people below the age of 18 were not as well equipped to protect themselves against violence and harassment.

"When we (the ministry and the lawmakers) set the age limit, we considered that people who are 21 years old or above are more mature and better able to protect themselves from violence ...," Erman said.

"We were also taking into account countries that have set age requirements (for arriving overseas workers). Malaysia accepts only people who are 23 years old or above, while Saudi Arabia and Singapore have set age limits at 21," he said.

According to Erman, in 2004 of the 3.9 million Indonesians working overseas, 16 percent faced problems at their places of work, including sexual and physical abuse, and unpaid salaries. That figure, the minister said, has since gone down to 14 percent as a result of the law.

In response, Kurnia said age restrictions were not the only way to protect workers from abuse.

"The government could think of other ways, like providing insurance, asking the country's representatives overseas to carry out proper controls or requiring manpower agencies to tighten the selection of workers," he said.

The Manpower and Transmigration Ministry's director general for the empowerment and protection of Indonesian overseas workers, I Made Arke, said during the hearing: "At certain points, workers under the age of 21 cannot overcome problems like asking about their unpaid salaries."

He added that in many cases it was difficult for the government to help workers facing trouble. "Some countries do not allow our representatives to enter and inspect houses where our workers are employed." (06)

Medan manpower office probes agency 'confining' workers

2007-02-20T22:05:00.001+07:00

National News - February 15, 2007
Apriadi Gunawan, The Jakarta Post, Medan

The North Sumatra Manpower Office has dispatched a team to investigate an employment agency suspected of violating child protection and manpower laws.

A number of would-be Indonesian migrant workers are allegedly being held by the owner of the agency, a police officer, at one of its transit locations.

Manpower office head Thoga M. Sitorus said something odd about the case had been detected and that further probing would be required. This especially regarded the ownership of the PT Sanjaya Putra Perkasa employment agency, where police conducted a raid on Feb. 12.

Thoga said he was surprised after learning the agency was owned by a police officer.

He added there was no law allowing police officers to run employment agencies engaged in sending migrant workers overseas.

"State officials and members of the police and military are not allowed to operate employment agencies. But it turns out that a dishonest member of the police force was running the business. We will find out how this happened," Thoga told The Jakarta Post on Tuesday.

An investigative team member, Jujur Sihombing, said that based on preliminary investigations the agency had been operating for two years and that it had not registered with the manpower office.

He said the team would coordinate with the City Manpower Office after finding several migrant workers' training certificates issued by the Medan Manpower Office at the transit location.

"We will trace the source of the ownership permit because in practice the agency is believed to have violated a number of rules, such as confining would-be migrant workers for months," Jujur said at the transit location on Jalan Adnan Benawi, Medan, on Tuesday.

North Sumatra Police spokesman Sr. Comr. Aspan Nainggolan said the police officer suspected of owning the employment agency had been arrested and was being interrogated.

"The suspect has violated Article 333 of the Criminal Code on seizing people's freedom, as well as laws on child protection and manpower," Aspan said.

Thoga said several employment agencies in the province were indicated to have violated rules when sending migrant workers abroad. Such violations included employing underaged workers.

"They should have sent those who had reached 18 years of age to work in factories and those over 21 to work as domestic maids. But in reality a number of employment agencies here have sent those who are still underage abroad," said Thoga, adding that 12 agencies have opened head offices and 65 branch offices in the province.

He said that his office would further investigate disputed employment agencies in the near future.

Women who wear headscarves accuse Sogo of unfair dismissal

2007-02-20T22:02:00.000+07:00

City News - February 14, 2007
Adisti Sukma Sawitri, The Jakarta Post, Jakarta

Lila Rohila, 38, had never thought the decision she took last Idul Fitri to wear a headscarf would ever become an issue for her or her company.

After working for 15 years at Sogo Department Store in Plaza Indonesia, Central Jakarta, she was told to accept a demotion or resign.

"They told me that if I wanted to continue working here and wear my headscarf I had to work in the back office, which would mean a lower salary," she said Tuesday.

The "back office" is the place where merchandise is packed and stored and the stock database compiled. She is now working in food and beverages.

A cashier at the department store, Indarti Subari, 28, has a similar story.

Despite her solid work performance -- reflected by a 12 percent raise last year -- Indarti was also "asked" to resign.

The department store is planning to dismiss 150 employees as its parent company, publicly listed PT Mitra Adiperkasa (MAPI), has decided to close its branch in Plaza Indonesia at the end of the month.

Those whose jobs are at risk include five women who wear the headscarf, security guards and a number of men and women approaching retirement age.

Thirty-seven Sogo employees -- including the five women -- have entered into discussions with the store's management, demanding to work at another branch of Sogo or one of MAPI's retail arms.

Indarti refuses to buy the management's story that staff layoffs are necessary because the company is facing financial difficulties.

"When I asked them whether it was because I wore this (pointing to her headscarf), they refused to comment."

She too was offered a less-visible position.

This is not the first time the company has been accused of discrimination during layoffs. According to the company's labor union, the Independent Labor Union Forum (FSPM), it also dismissed three women in 2002 who had refused to take off their headscarves for work.

MAPI's head of investor relations Ratih D. Gianda told The Jakarta Post it was true the branch would be closed but dismissed allegations Sogo employees had been fired or demoted for wearing the headscarf.

"The decision to put people in customer contact jobs does not rest on whether they wear the headscarf."

She said the company employed a number of women who wore the headscarf in a range of capacities.

Ratih also said the company would comply with the Labor Law, including on severance payments for dismissed employees.

MAPI is one of the largest retailers in Indonesia and the license-holder of Sogo and Debenhams department stores, Starbucks cafes and Kinokuniya bookstores.

The company booked a 16 percent increase in net profit to Rp 132 billion (US$14.5 million) in 2005, while it recorded Rp 35.46 billion in the first half of last year.

Migrant workers 'need skills' to protect against abuse

2007-02-20T21:55:00.000+07:00

The Jakarta Post
National News - February 14, 2007

President Susilo Bambang Yudhoyono has appointed Jumhur Hidayat to head the National Agency for the Placement and Protection of Overseas Labor (BNP2TKI). The new institution, which will begin operating in March, was formed to ensure affordable, safe and rapid labor export procedures, and to provide more protection for migrant workers. Jumhur recently outlined his programs in an interview with The Jakarta Post's Ridwan Max Sijabat.

Question: What will be the focus of the new agency?

Answer: We will first of all mend the recruitment process and the training system to ensure the cheap, safe and rapid export of trained workers. Only authorized labor exporters will be allowed to recruit workers, which will be coordinated and supervised by the BNP2TKI and its regional offices. Manpower and transmigration agencies, village heads and labor brokers will no longer be allowed to get involved in the recruitment process.

The recruitment costs will be cut as much as possible, while the revenue structure will be evaluated to prevent labor exporters from extorting workers. All necessary documents must be ready within two weeks to give workers time and cost-certainty, and to avoid any red tape in applying for the documents.

All training centers belonging to the government and local administrations will be deployed to provide training for overseas-bound workers.

Why are you giving priority to labor recruitment?

The recruitment process is the decisive factor in labor protection. Prospective migrant workers have to be trained to master the language of the country where they will be employed and to acquire certain skills that will enable them to meet the market's minimum qualifications. Being fluent in the language and having the necessary skills, workers will be able to solve any troubles they may face during their departure and return, and minimize problems they might face in the workplace. These skills constitute basic protection for workers.

In the workplace and during their trip to and from their destination country, workers will be insured and will be given access to diplomatic and legal protection, either from the Indonesian embassies or lawyers, when they have disputes with exporters, foreign labor agencies or employers.

What is your comment on the problem of the abuse of Indonesian workers overseas?

We have yet to conduct a survey or investigation into this issue, but by studying media reports we have identified a number of problems and conditions which are the main causes of the abuse. The lack of supervision has allowed labor exporters to send untrained or less-trained workers overseas in a bid to make money immediately.

We have to bear in mind that Indonesia sends around 640,000 workers overseas, and most of them come from remote regions, only graduated from elementary school or junior high school and are employed as maids. They will certainly have trouble in their workplace unless they are properly trained, because they are not familiar with modern household appliances such as refrigerators, electric irons, washing machines, rice cookers and many other appliances that they don't know how to operate.

It is also the government's responsibility to enhance bilateral ties with recipient countries in order to push them to protect our workers. The law requires the government supply workers only to countries which have signed bilateral agreements with Indonesia and have ratified the ILO convention on the protection of migrant workers and their relatives.

We will review the supply of workers to Saudi Arabia and other countries where Indonesian workers' rights are not fully respected, despite the huge market there.

What will be the new agency's contribution to labor protection?

The agency is set up to facilitate a cheap, safe and rapid departure of workers abroad, and to provide integrated services, including protection, for workers. Like a similar agency in the Philippines, it will serve as a bridge between all relevant government offices to draw up and implement the better policies and regulations needed to facilitate labor exports.

How will you deal with illegal workers?

It is a chronic issue. Besides law enforcement, we will be campaigning to make it more attractive for labor exporters to minimize the number of people working overseas without documentation. Many undocumented workers have entered Malaysia and other countries because they do not know how to go through all the legal procedures, and many others have been deceived by domestic and international syndicates. Harsh punishments will be imposed on those involved in human trafficking.

What is your main target for labor exports?

First of all, labor exports must continue in a smooth and safe manner. The protection of workers and improving their welfare is our main priority. Second, we are also targeting high school graduates with certain skills in urban areas.

We are optimistic that within the first few years we will be able annually to send overseas at least 750,000 semi-skilled workers, who will earn relatively more money for their work. This will not only help the government reduce the unemployment and poverty rates, but also increase the annual remittances sent back to Indonesia by migrant workers to Rp 500 billion from the current Rp 350 billion.

Nurses seek right to wear headscarves on the job

2007-02-14T18:57:00.000+07:00

National News - February 13, 2007
Yuli Tri Suwarni, The Jakarta Post, Bandung

Some 28 nurses working at privately-run Kebonjati Hospital in Bandung, West Java, staged a rally Monday to protest the hospital's ban on the use of Muslim headscarves, locally known as jilbab.

Accompanied by representatives of the Bandung chapter of the Islam Defenders Front (FPI), the nurses demanded that the hospital revoke the ban.

Nurse Yanti Sumiyanti said the majority of Muslim nurses working at the hospital dared to use their headscarves only on the way to and from their houses.

"As soon as we arrive here, we are forced to take off our headscarves and serve the patients using nurse's uniforms as required by the management," Yanti said during a meeting with management overseen by the head of the Bandung police detective unit, Adj. Comr. I Ketut Adi Purnama.

Yanti said that since 2004, the nurses had asked the management several times to be allowed to wear headscarves. Hospital chairman Djohan Somalie turned down the request, however, on the grounds that the hospital did not represent any particular religion.

That stance was affirmed by Yunandi, the deputy director of medical services, who represented management in the hearing.

"Kebonjati Hospital is a general hospital which does not represent a certain religion. We never imposed a regulation preventing the use of headscarves, but we have our own regulation on the use of uniforms, with clear-cut pictures. It's similar to those used by the police, the military. They have their own uniforms, don't they?" Yunandi asked.

Yunandi said the regulation on the use of nursing uniforms had been in force since 1979. He said all employees were told they must wear white skirts and blouses with nurse caps.

Nurse Nining Sariningsih, 26, said besides upholding Islamic law, she felt more secure and comfortable wearing a headscarf with trousers and a long-sleeved shirt.

Nining argued that when she had to bathe a baby or lift a patient onto a bed, the short uniforms were not practical.

"Our legs are plainly visible; it makes us ashamed. Never mind that we are forced to go up and down the stairs," she said.

Asep Syarifudin, deputy chairman of FPI's Bandung chapter, urged the management to uphold Muslim women's rights to use headscarves as guaranteed by the Constitution.

"Policewomen in Aceh wear headscarves, while in India we frequently see policemen who wear turbans on their heads," Asep said.

In response to the protest, three representatives of the management signed a letter in their capacity as individuals to support the use of headscarves.

"Such support constitutes progress ... we hope we can continue wearing headscarves," Yanti said.

Building union culture in Indonesian press

2007-02-12T20:04:00.000+07:00

kompas inside
Sunday, February 11, 2007
Bambang Wisudo )*

“Media company is not the same with transportation or shoe company that can be just bought and sold. Media company is not merely a commercial institution. It is mainly an idealism institution,” PK Ojong (1974), co-founder Kompas-Gramedia Group, Indonesian media conglomerate that published Kompas Daily.

FOR quite a long time, Indonesian journalists did not identify themselves as workers. During Soeharto regime Indonesian journalists were lull to sleep by identifying themselves as professionals that differed from other workers. To legitimize this, in 1984, the government ruled the media companies to give minimum 20 percent of its shares to their employees that were managed collectively. The Department of Information which controlled the press also claimed that journalists were not ordinary workers. Journalists served themselves as professionals and they had to become members of Indonesian Press Association, the sole journalists association that was recognized by the government. This situation created barriers for journalists and media workers to established trade unions.

In 1988, some journalists of Kompas Daily such as Albert Kuhon, Rikard Bangun, Irwan Julianto, and Maruli Tobing tried to establish a union and the faced repressive respond by the company. Kuhon was isolated and prevented to do his jobs as journalists, and the other three were given sanctions. Later, Kuhon retreated because of the isolation. In 1994, two Kompas Journalists Satrio Arismunandar and Dhea Perkasa Yudha were forced to retreat because of their involvement as members of board executives of Serikat Buruh Seluruh Indonesia, a progressive union that oppose to Soeharto.

Despite of the resistance among the workers and management to the idea of establishing union, two month after Soeharto fell down with few of my colleagues I try to establish a union. The changes of political environment and the enthusiasm of Indonesian people to establish unions and political parties helped me to asked my fellow workers to support the idea to establish union. Anyhow we had to accommodate the management consideration that the union is just an internal organization that its main function is to bridge the communication between workers and management. We even did not used the word of “union” but we used the term of “association of employee”, Perkumpulan Karyawan Kompas (PKK).

One of the aims of PKK is to clarify and negotiate the realization of 20 percent shares owned by the workers. By the time being, we continually tried to build PKK as a true union. We registered PKK to Department of Labor to meet legal requirement as an union. However the management resistance grew as PKK was built as union. In the year of 2001, I was prevented to do my jobs as journalists for a year liked it was happed to Kuhon. However the sanction was canceled after I protested bitterly with the support of Alliance of Independent Journalists. I then retreated as chairman PKK and the organization continued to negotiate with the management to realize the shares owned by the employee. Unfortunately after almost six year of negotiation it give no result. Therefore in 2005 I joined again as a member of broad executives of PKK. In the mid 2005, without any agreement of its workers, the shares of Kompas Employee were given back to the company and unilaterally conversed to profit sharing.

After some protests of unilateral decision to abolish the shares owned by the employees were ignored, PKK asked legal aid to some public lawyers. They then give legal warning to the management. This move make the company open the negotiation again. Because of the un-conducive situation since the workers were mobilized to stand against the organization, we accepted the idea to conversed the collective shares owned by the employee to profit sharing. However we succeeded that the company will give 20 percent of its dividend to its employee every year as long as the company exist and the changes of the commitment have to be asked to the workers for agreement.

Two month after the agreement, as the secretary of PKK, I was reassigned unfairly to Ambon, to Maluku. The chairman of PKK was also reassigned to Padang, West of Sumatera. The reassignment was directly connected with our role as union activists and it was against the labor law. Once again I protested bitterly to the decision and when I distributed leaflets to protest the decision, I was sacked violently and was under detention of the internal security for two hours and then I received illegal dismissal letter signed by Kompas editor in chief, Suryopratomo.

Two months after the incident, neither Jakob Oetama as president of the company or Suryopratomo ask forgiveness for the violence and the illegal dismissal despite the pressure from national or international communities.

***

PRESS worker union is quite a new phenomenon in Indonesia although embryos of press trade union have been established for quite a long time in some media companies. Despite there are approximately 1.500 media companies in Indonesia, the number of press worker unions in Indonesia are not more than 40. Most of them are not well organized, they do not collect membership fee, and can not legally represent the workers because the haven’t registered to the Labour Force Department. Just few of them have collective work agreement.

During New Order regime, there are some embryo of pres worker unions known as Board of Employees, Dewan Karyawan. It is pioneered by Tempo Magazine with the name of Tempo Board of Employees. It was founded in 1978 with the main objective was to create good working atmosphere in the company. The organization was not concerned on welfare issues but more focused on solving disputes between employees and management. Board of Employees was copied by some media companies, such as Jakarta Post, Gamma, and Gatra. Tempo Board of Employees has just recently registered to the Department of Labour Force.

Once Republika succeed in building its trade unions. The union was founded in 2000 under the name of PT Abdi Bangsa Board of Employees. They even succeed in negotiation collective work agreement with the management. However not long after its success the union leaders were forced to retreat, the union was co-opted, and now it don’t have strong bargain with the management. Radio 68 H can be mentioned as one of the media company that can live together its union.

Since its formation on 7 August 1994, Alliance of Independent Journalists (AJI) have concerned in improving professionalism and welfare of press workers as well as struggling for press freedom. Welfare of press workers can be achieved gradually on condition that there is solidarity among the workers as well as a will to build a strong organization to represent the workers. To educate and promote union culture among press worker, AJI established Trade Union Division. Continually AJI campaign to journalists and press workers to form worker unions in their workplaces and train its member to become union activists. In Jakarta, AJI encourage the unions to establish a city-level networking.

The slow progress in developing press worker union in Indonesia, as I mentioned before, partly because of journalists in Indonesia tends to identify themselves mainly as professionals, not as workers, even the majority of journalists in Indonesia are low-paid. A recent study conducted by AJI Jakarta shows that there are still some journalists in Jakarta only paid Rp 250.000 (30 US Dollars) a month. That is far below the standard of salary for journalists in Jakarta Rp 3.200.000 (355 US Dollars). Only few of media companies that provide minimum salary Rp 3.200.000 for its journalists. Tempo Group can not meet the standard. However Radio 68 H can meet the standard because of its non profit orientation.

Why this such condition do not encourage Indonesian journalists to establish press workers union in their company? Despite demanding for better work condition to their management, most of them prefer to get extra-payment from their news resources. For many years, most journalists in Indonesia get money from their news resources known as “envelopes”. The “envelope culture” is so rampant among the journalists in Indonesia that many government and business institutions allocate their budget for bribing the journalists. However some idealistic journalists that get low payment try to get extra income by doing side-jobs.

The pragmatic behavior of the journalists in one hand and the reluctance of the media company to accommodate the existence of union is the main factor that make the progress of media worker union in Indonesia is so slow. Although the labour law 2001 declares clearly that anyone who prevent union activism would face penal punishment, the law is still toothless. Union activists are still vulnerable. Grand strategy to build press worker union, such as union training and campaign, establish network and federation of press worker union, legal protection and protection for union activist is urgently needed.

The brutal action of Kompas management in sacking its union activist have to be respond and has to battled legally. It is very important to show a strong message to all media companies that they have to respect the rights of their workers to raise their voice and to organize themselves.

*) Bambang Wisudo is journalist of Kompas Daily, Secretary of Compass Press Worker Union and Coordinator of Ethics and Profession Division, Alliance of Independent Journalists (AJI)

Preserving worker's right in the media industry

2007-02-12T19:55:00.000+07:00

kompas inside
Thursday, February 8, 2007
Ignatius Haryanto )*

Recently a big case happen to Paulus Bambang Wisudo, a senior Kompas journalist, who was ransanked in this mid December for his struggle as workers activist in Indonesian biggest daily. Bambang wanted to ensure workers right in having 20% shares of the newspaper company, and for his struggle he and several of his friends were mutated to remote area.

Alhtough the mutation was claimed as part of the normal rotation for Kompas journalist, but many can suspect this act was part of the revenge action by the newspaper management over their workers. This act can be seen as an act against Indonesian Labor Law, when a company ransacked or turned down the union activist, they can get some punishment.

This big case reminds us that journalist, although many claim as special profession, but in the eyes of the media owner or media management, journalist are still workers by definition, since they don't own the media. What Bambang and his colleagues struggle for is part of the legacy from Harmoko's era as Minister of Information.

Harmoko, during the New Order era, proposed an idea that media workers should have collective shares in the media industry, as part of increasing journalists welfare effort. The intention of his idea was actually good, but in reality, is quite complicated to be enacted.

Part of the problem is that there's no such control from the Ministry to check whether the 20 % workers share were happened in many press industries at that moment, and in reality, Harmoko himself, put his own interest in having the share, in stead of the workers themselves. So part of Harmoko's legacy remains problematic for today, when the state actually is not as strong as the New Order era. So, the state cannot intervered to media management to check whether the 20% policy was still enacted, or what happen to journalist welfare, as Harmoko was struggling about twenty years ago?

Let's put aside the problem, whether journalist should or would have 20% of their company share, but let's go to another question, do the journalist have their rights to be involved in journalist union in order to protect their rights? In the New Order era, answer to this question would be very vague.

Yes, journalist also have their rights as media workers, but on the other hand, this argument mention that journalist is different than any other profession, because they are professionals, and not the same with other workers (for instance, manufacture workers, and so on).

So in line with this argument, that journalist association was prohibited to connect with workers association, and they can form an instititution in the media company, to preserve their welfare, but this institution should be managed through family cultures and values ("sikap kekeluargaan").

But on the other hand, the opponent to this argument raised an issue that journalist is the same as other workers, although they were working in different sectors, but the basic idea is the same; they are workers, they didn't take part in the decision making processes in the company, they cannot control the company owner, and they are not owning the company.

By looking at fragile situation faced by the journalist, it is necessary, for this opponent view, that journalist should, and could build their own union.

Looking at the economic crises situation several years ago, where many media companies flourished, and banished at very short time (from three to six months), it is very critical for journalist in those media companies to preserve their rights, especially when journalists were having low salaries, and not having compensation after the media was bankrupt. Some cases even went to trial, and some cases showed that the media workers were win over the media owner.

In the era where hypercommercialism was raised, and the media company was turned into a purely business entity, this case was not suprising to happen. Forget the old adagium when the press industry was perceived as part of the institution for struggle, and many writers (eg: Christianto Wibisono, Daniel Dhakidae, David T. Hill) had already shown us the shifting from the press struggle paradigm to business struggle paradigm.

Remember, that we are now living in the very tough competition in the media industry, not only among media groups, but also competition in the media formats (Television versus print media, radio versus internet, etc.)

What happen to press idealism, in this shifted situation? Are we still facing great idealism created by most of the press founder, or are we now facing a more business friendly or a entertainment type of news that reduced political and economic risks?

Are we easy to find indepth and thoughtful articles in the papers, or watching insightful programs in television? Or we just can say we find more rubbish news or program than before? If this happen, who can balance the situation? The government? The Public? The Journalist themselves? Or Who else?

I still believe that in this situation, the public, and journalist have their chance to increase and to improve media performance today. Taking this responsbility to the government will backlash us to the New Order situation, when the state control over everything in the press.

But giving a chance for public (in this sense; the readers, the viewers, the media watch groups) to control the media, is more a healty situation, when there is an interraction between media producers, and media consumers, to create a situation when hypercommercialism can be negotiated. And giving this chance also to journalists themselves is also a good effort, so that they feel responsible to the society, which they owe their support to the media organisations.

In this stance, I would say, that preserving journalist right to be involved in the union, is the basic rights, basic needs, and also basic strategy if the media companies, still wanted to get support from public.

Media companies which undermines their workers will get bad image from the public. And taking adagium from the second wave of feminist activists, the media company should also notice : "the personal is the political", means that what happen inside the media company cannot perceived only as a matter of their internal problem, but it is also part of the larger interest of the public.

When the media intrude union activists, it gives signals that the media in itself is undemocratic, and the public will consider this act as part of the media hypocricy when the media publish many good articles and news about democratic values, but in reality, the media itself was undemocratic to their workers. (*)

12-12-06

)* Ignatius Haryanto,
a researcher at Institute for Press and Development Studies, LSPP, Jakarta

Bankruptcy of foreign firm costs 1,300 jobs in Batam

2007-02-09T17:06:00.000+07:00

Fadli, The Jakarta Post, Batam

More than a thousand workers at a foreign-investment company in Batam, Riau Islands province, were shocked to find out they were out of work this week.

The Malaysian joint-venture company PT Livatech Electronics Indonesia stopped operations, leaving its 1,300 workers in the lurch.

Workers gathered outside the company's factory in the Kara Batam Center industrial complex Wednesday, unsure of their future.

Worker Muhammad Yusuf told The Jakarta Post workers at the factory did not know beforehand that the company was closing down.

Muhammad, who worked at the factory for 15 years, said company head Goh Singhing, also known as Jackson Goh, had not shown up to work for the preceding two weeks. On Feb. 5, production at the factory was stopped.

Goh invited workers' representatives to a meeting Tuesday at a cafe in Singapore's Ferry Harbour Front Center to discuss the company's future.

"At the meeting, Mr. Goh told us to go ahead and sell the company's assets to pay for salaries and compensation. He was accompanied by his lawyer and we couldn't do anything. He said the company was bankrupt," Muhammad said.

Another worker, Radiana, said there was no sign the company, which first opened in Batam in 1993, was about to go bankrupt.

"It's true that since early February the orders the company was receiving were less than they used to be. But there was still work," she said, adding that the drop in orders had already forced the company to lay off 190 workers.

Each worker at the factory received a salary of around Rp 815,000 per month.

Muhammad said he was unsure how much of the factory remains.

"We don't know whether the factory's machinery is still there since several rooms are sealed. We agreed to guard the factory," Muhammad said.

Batam Industrial Development Authority spokesman Dwi Djoko Wiwoho said Wednesday he was not aware of the factory's closure.

"The Batam Authority and related offices will find out what's going on and try to come up with solution to the matter," he said.

However, he denied the company would have stopped operations due to the unclear legal status of its investment in Batam, which is designated a Special Economic Zone. There have been complaints of complicated bureaucracy and high salaries in the zone.

According to the authority's data, 12 foreign-investment companies left the island between 2005 and 2006 for various reasons, while 600 companies remain in operation.

New lounge, same abuse of migrant laborers

2007-02-09T16:48:00.000+07:00

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Migrant workers have reported that they continue to be targets of extortion by corrupt officials at Departure Terminal II of Soekarno-Hatta International Airport, just outside Jakarta.

A special lounge was opened for migrant workers in August, in an attempt to shield them from extortion. The lounge replaced the airport's Terminal III, which had become notorious among migrant workers for extortion.

The new lounge offers numerous facilities to help workers deal with authorities from immigration, the police and the local manpower and transmigration office. It also provides banking services.

In a speech during the lounge's opening, President Susilo Bambang Yudhoyono asked all government agencies to improve their services for migrant workers and ensure the best possible experience for departing workers.

Officials and security personnel at the service counters in the lounge have acknowledged problems in processing workers, but they say these problems are minor and can be resolved immediately.

Workers and labor exporters, however, tell a different story.

Those with the necessary documents and enough money may report relatively few difficulties, but workers with incomplete documents often find themselves at the mercy of corrupt officials who charge exorbitant fees for necessary paperwork.

Risnawati, 28, a migrant worker from Karawang, West Java, told The Jakarta Post she paid a total of Rp 1.2 million (US$133) to officials at the immigration and manpower offices, as well as to airport police to smooth the way for her departure for Riyadh, Saudi Arabia, on Thursday.

"I paid the money from my own pocket, as well as from my husband who was seeing me off," she said.

Many workers have also complained that officials coerce returning migrant workers to exchange their foreign currencies at Bank Mandiri.

One departing worker has been missing after allegedly being detained by airport police because of incomplete documents. Ratna binti Udi and five other workers were reportedly questioned by police on Nov. 18, 2006.

"The five were set free while Ratna's whereabouts are still unknown. The police have denied detaining her," said an official at PT Karya Pesona Sumber Rejeki, the agency which recruited the workers.

The six were among 41 workers recruited by the company to be employed as maids in Saudi Arabia. The other 35 were allowed to depart.

Indonesian Association of Labor Placement and Development chairman Adrie Nelwan said extortion by corrupt officials and unauthorized brokers was common in the migrant workers' lounge.

"Since the lounge was opened in August, extortion and other labor abuses have been common," he said. "The culprit is not the space but the officials."

No officials at the Manpower and Transmigration Ministry were available to comment on these charges.

Indonesian Labor Exporters Association chairman Husein Alaydrus urged the new National Agency for Labor Export and Protection to take tough measures to minimize extortion, both at international airports and during the recruitment of workers in their hometowns.

Indonesian work accidents still high

2007-02-09T16:37:00.000+07:00

National News - February 07, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Despite frequent occupational safety campaigns, official data indicate that the level of workplace accidents in the country remains high.

According to figures from the Manpower and Transmigration Ministry, there were 92,700 workplace accidents in 2006, a decrease from 96,000 in 2005. The accidents in 2006 resulted in 2,045 deaths and the loss of 38 million work days.

A total of Rp 214 billion (US$23.6 million) was paid out to the families of those killed in workplace accidents in 2006. The compensation came from the companies concerned and state-owned insurance company PT Jamsostek.

According to the International Labor Organization, occupational accidents remain a serious problem in developing countries, causing 4 percent of gross national product in material losses to governments and employers.

"This data reflects the absence of serious attention from either the government or employers to protect workers in the workplace. The annual occupational safety campaign (K3) has not been effective, and this situation will affect employers because occupational accidents affect company productivity," Manpower and Transmigration Minister Erman Suparno said when presenting awards to 405 companies with zero occupational accidents in the past three years. The awards were handed out during a ceremony here Tuesday.

The minister also recognized the governors of East Kalimantan, North Sumatra and East Java, and dozens of regents and mayors for their work toward improving occupational safety in their regions.

Minister Erman also acknowledged the high number of occupational accidents had a lot to do with weak law enforcement and government supervision, and the lack of awareness among employers of the importance of safety in the workplace.

In addition to the light penalties called for under the law on occupational safety, many regions lack inspectors to enforce the law. Many employers also prefer the relatively light fines for infractions rather than providing costly safety equipment for workers.

The 1970 law on occupational safety threatens a maximum three-month jail sentence or a maximum fine of Rp 100,000. In addition to this law, five ministerial decrees have been issued to regulate the implementation of occupational safety programs in those industries seen as most at risk for workplace accidents.

"The law must be reviewed to impose harsh sanctions on violating companies, and regional administrations will be encouraged to enhance supervision of accident-prone industries and projects," Erman said.

Director general of industrial relations and social security affairs at the Manpower and Transmigration Ministry, Soewito Ardiyanto, blamed the high number of workplace accidents on employers who ignored the law in an effort to increase productivity.

"Law No. 7/1981 requiring companies to regularly provide labor reports to the government is obligatory for almost 177,000 companies operating in Indonesia, but only a small part of them submit their labor reports regularly," he said.

The lack of awareness on the part of employers of the need for labor protection is also indicated by the fact that only 7.5 million of some 30 million workers in the formal sector have been registered with PT Jamsostek.

Government hopes to find new jobs for sand miners

2007-02-09T16:26:00.000+07:00

National News - February 07, 2007
Fadli, The Jakarta Post, Batam

The government has set aside funding for coastal regencies to help thousands of sand miners train for new work, following a ministerial decree banning the export of sand.

The director general of marine coasts and small islands at the Maritime Affairs and Fisheries Ministry, Syamsul Maarif, disclosed the plan to The Jakarta Post on Tuesday.

The ban was issued by the Trade Ministry on Jan. 22 and will come into effect on Feb. 6. It was necessary, Syamsul said, in order to stop the environmental destruction wrought by sand mining.

"Coastal sand mining activity does great damage to the environment and we want to minimize the ban's impact on workers in the sector by providing alternative livelihoods," Syamsul explained.

He said the central government had allocated Rp 850 million (US$92,391) in coastal economic empowerment funds for 278 coastal regencies across the country.

The Riau Islands, he added, would be among the regions receiving the largest cut. He did not elaborate on the amount.

He said the central government hoped the Riau Islands provincial administration would allocate most of the money to assist sand mining workers, who could possibly train to become fishermen or grow seaweed.

Riau Islands provincial administration secretary Eddy Wijaya said Tuesday his office had received complaints from the Bintan, Karimun and Lingga regencies, which rely on sand exports for their revenues.

"We're considering steps to be taken to deal with the impact of the sand export ban, including the fate of the workers. The regents have raised concerns about the possible impacts of the new policy," Eddy said.

He said most of the sand mining workers were fishermen who got into the business to earn extra income. Thus, most of them do not rely on mining for their livelihoods.

The provincial administration distributed Rp 22 billion last year to assist fishermen, he added.

"I think the provincial administration has paid enough attention to coastal people and the sand mining workers are a small part of them. In this case, the sand export ban will not surprise them too much," Eddy said.

Based on data from the ministry, some 16 million people across the country live in coastal areas, of which four million are poor fishermen.

Data from the Riau Sand Exporter Business Association indicates some 3,000 sand miners will be affected by the ban.

The association's chairman, Ficky Zulfikar Zaljuli, said 24 sand exporters in Bintan, Karimun and Lingga regencies planned to file a class-action lawsuit against the government for issuing the ban.

"We'll take this matter to court. We're surprised by the government's policy. Businesspeople were not involved in designing it," Ficky said.

He said although the ban would apply to the whole country, sand mining exporters in Riau would be the worst hit.

The three regencies currently export 300,000 cubic meters of sand to Singapore per month.

RI embassies rather slow in protecting Indonesian migrant workers

2007-02-09T16:15:00.000+07:00

Jakarta (ANTARA News) - Indonesian embassies in four foreign countries have been rather slow in helping a number of Inonesian migrant workers who are facing the death sentence in those countries, a legislator said.

Suripto, a member of the House of Representatives (DPR) Commission I, was referring to the Indonesian embassies in Egypt, Saudi Arabia, Malaysia and Singapore where a total of 19 Indonesian migrant workers are charged with committing acts carrying the death sentence.

"Indonesian embassies are supposed to protect Indonesian nationals who are in trouble abroad but in reality they are rather slow in doing something to meet this expectation," Suripto said.

He said the largeness of the numbers of Indonesian migrant workers abroad was no valid excuse for the embassies` inablity to monitor the workers` activities and protect them.

Suripto said the Indonesian embassy in Malaysia had been too slow in providing assistance to Suhaidi bin Asnawi, a migrant worker from Lombok Barat district in West Nusa Tenggara, who was facing execution by hanging.

He said Suhaidi bin Asnawi had been in trouble with the law in Malaysia since 2001 but the Indonesian embassy in Kuala Lumpur started to assist him only in early 2005.

Because of the Indonesian embassy`s lack of attention, Suhaidi bin Asnawi was to appear in court for the last time in March when sentence would be passed on him.

Suripto said if the Indoneisan embassy had all along lobbied Malaysian authorities over Asnawi`s case, the latter would have had a chance to get a lighter sentence.

"As fellow ASEAN member countries, it would not have been too difficult to lobby the Malaysian government for a more lenient sentence for Asnawi," Suripto said, adding that the Indonesian embassy`s approach through non-government organizations (NGOs in Malaysia was less effective.

One thing Suripto said important enough to protect Indonesian migrant workers abroad was that the embassies should immediately find noted lawyers for those who were in legal problem and free them from the death penalty.

"The embassies should find noted lawyers in the country to protect migrant workers," Suripto said.(*)

Journalist demands justice over dismissal

2007-02-05T12:07:00.000+07:00

The Jakarta Post
City News - February 02, 2007

JAKARTA: Journalist Bambang Wisudo on Thursday asked the Jakarta Manpower Agency to solve his dispute with former company PT Kompas Media Nusantara, which dismissed him in December for creating uneasiness among employees.

He claimed the dismissal was related to his activities as the secretary of the Kompas workers union, which had fought to regain the employees' 20 percent share in the company.

"The dismissal is baseless. I demand Kompas restore my status as an employee of the company," he said.

An Information and Communications Ministry regulation issued in 1984 states that a 20 percent share of a media company must be delivered to employees.

Last year, the management agreed to disburse 20 percent of the company's annual profits in terms of dividends to workers.

Two months after the settlement, four members of the workers union were sent outside Java, including Wisudo.

He wrote to Kompas daily co-founder Jakob Oetama, requesting a move to Garut, West Java, which is closer to Jakarta, and forwarded it to the office. Not long after that, he was dismissed.

Agency head Rusdi Mukhtar said he found indications of illegal dismissal.

"A company can only fire a worker for lack of discipline after issuing three warnings. It cannot dismiss or transfer employees in relation to labor union activities, especially not those who fight for workers' welfare," he added.

The agency is investigating the case before submitting it to the prosecutor's office for trial at the labor court. -- JP

Emergency service workers go on strike

2007-01-26T16:38:00.000+07:00

The Jakarta Post
January 26, 2007

JAKARTA: More than 200 members of the Emergency Ambulance 118 Workers Union rallied Thursday at the Hotel Indonesia traffic, demanding the city administration expedite the establishment of the regional public service board to accommodate them.

"Our employment status is unclear. We are caught between the categories of permanent and contract worker," said protest coordinator Arif Fatahillah.

The union said the foundation that established the service had failed its 316 workers by not improving the terms and conditions of their employment.

A worker is paid between Rp 800,000 (US$90) and Rp 100,000 per month without allowances.

"We are not asking the city administration to make us civil servants, we just want job security as compensation for having to deal with critical incidents and people who are in distress," Arif said.

The workers dispersed at noon after staging a short drama that "spoke to the issue at hand". -- JP

Jamsostek should run plan: Minister

2007-01-26T16:36:00.000+07:00

National News - January 24, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Minister of Manpower and Transmigration Erman Suparno insisted Tuesday that state-owned insurance company PT Jamsostek should run the newly proposed dismissal-benefit program.

His statement runs counter to the view of Vice President Jusuf Kalla, who has said that the government could privatize the planned scheme.

Kalla made his comments in a work meeting with the Manpower and Transmigration Ministry here last Friday. Employers, the government and labor unions have agreed to add the dismissal benefit scheme to the spectrum of social security programs carried out by PT Jamsostek.

"It is impossible for the government to entrust the dismissal benefit scheme to private companies because it is part of the social security programs (of PT Jamsostek) to ensure job security among workers," Erman told The Jakarta Post.

"The appointment of Jamsostek as the monopoly holder in providing social security programs is closely connected with the government's obligation to protect workers, as stipulated in the ILO Convention on workers' basic rights."

Like the four current social security programs, he said, the new scheme will be paid for by employers. He said he believed workers at all levels should have the right to receive the dismissal benefits.

Jamsostek director of operation and service affairs Tjarda Muchtar concurred, saying social security programs could not be entrusted to private companies because they were different in nature from commercial insurance.

Besides being obligatory, the social security programs are actually a form of cooperation between white- and blue-collar workers, he said.

"Out of the nearly 12 percent premium for the current four programs, employers contribute 10 percent and workers pay only 2 percent of their gross monthly salaries for the pension benefit program. In this arrangement, white-collar workers give a cross-subsidy to blue-collar workers by paying more in premiums," he said.

He added that Jamsostek was ready to carry out the additional program in accordance with the format set by the stakeholders.

Labor unions, the Indonesian Employers' Association (Apindo) and the government are still discussing the new scheme's format to maximize its benefits for workers and employers.

The stakeholders are still divided over the new program's scope, with the government wanting all workers to receive its benefits.

Apindo wants the new program to cover only low-income workers getting the monthly minimum wage while unions want it to cover workers with monthly wages up to Rp 15 million.

Jamsostek's Iwan accepts suspension

2007-01-26T16:33:00.000+07:00

National News - January 23, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

President of state-owned workers' insurance company PT Jamsostek Iwan P. Pontjowinoto said Monday he was ready to be held accountable after being suspended by the company's board of commissioners.

"According to the company's statutes, the board of commissioners has the authority to suspend a president director until the shareholders hold a special meeting to assess the condition of the company," he said.

"I will certainly take responsibility for all the decisions and policies the board of directors has made during my leadership in the past one and half years," he told The Jakarta Post over the telephone.

He said he did not believe that the disharmony between the management and the employees was the main reason for his suspension and that he disagreed with the appointment of director of operations and services Andi Achmad as acting president director.

"The reasons for disharmony are multi-interpretative. I did not violate the law, the regulations or the company's statutes and I complied with official procedures in completing my tasks," he said.

Hundreds of Jamsostek employees went on strike Thursday to renew their call for Iwan's replacement in line with the prolonged leadership crisis in the company.

The board of directors called for an immediate extraordinary shareholders' meeting to appoint a definitive president in accordance with the company's statutes.

"A shareholders meeting has to be held within 30 days to appoint a definitive president director to calm down the situation in the company," Suryo Sulistyo, a member of the board of commissioners, said in a press meeting.

The board declined to reveal what violations Iwan had committed during his tenure but said that the action was taken to salvage the company from public distrust and to heal the unhealthy situation in the company.

The Jamsostek Workers Union, which was behind the no-confidence motion against Iwan, has threatened to stage a total strike and suspend their services to the public if the government does not replace him.

The company manages a total of almost Rp 39 trillion in assets, which have been collected from 25 million workers and more than 136,000 companies participating in social security programs.

Iwan, whose term of office was originally meant to end in April 2008, replaced Achmad Junaidi, who was jailed for six years for his involvement in a graft case.

Jumhur aims to help, protect RI workers

2007-01-26T16:29:00.000+07:00

National News - January 23, 2007
Ridwan Max Sijabat, The Jakarta Post, Jakarta

The chief of a newly established agency to place and protect Indonesian workers abroad promised Monday to institute rapid changes.

Jumhur Hidayat was sworn in by Manpower and Transmigration Minister Erman Suparno as chief of the newly-established National Agency for the Placement and Protection of Overseas Workers.

The agency takes over the ministry's responsibilities to migrant workers, such as facilitating labor export and providing legal protection.

"My immediate task is to hire professionals and qualified staff to make the new agency operational. My focus is on facilitating a cheap, rapid and safe labor export procedure in accordance with the law and improving our workers' bargaining position in the world market," he said after the ceremony.

The 2004 Overseas Labor Placement and Protection Law requires the presence of an independent agency to deal with labor export and protection. The law also requires the government and the new agency to supply workers only to countries that have labor agreements with Indonesia.

About four million Indonesians work overseas, mostly in Middle East countries. Most of these countries do not have bilateral labor agreements with Indonesia, which has contributed to the rampant abuse of migrant workers.

Saudi Arabia employs the most Indonesians in Middle East but workers employed as housemaids, drivers and gardeners are not protected by its labor laws or by any agreement between the two countries. According to data from Migrant Care, hundreds of Indonesian workers have been killed, jailed, raped, abused, unpaid and exploited over the last two decades due to the absence of a legal protection.

So far, Indonesia has signed labor agreements with Malaysia, Taiwan, Hong Kong, South Korea and Kuwait.

There are also millions of Indonesian workers, including child laborers, being employed without documentation in Malaysia and Saudi Arabia. There are also tens of thousands working in many countries which are not recommended by the government, such as Syria, Lebanon, Iran, Palestine and Iraq.

Jumhur said the new agency would be tough in enforcing the law and require all labor exporters to have their own training center in order to shift the country's labor export policy into semi-skilled workers and reduce the number of unskilled workers.

"Indonesia will not only accelerate labor exports but also intensify the labor training program to improve the quality of workers," he said.

"We are targeting exports of about 750,000 workers this year with some 70 percent being semi-skilled workers. We must reduce the supply of housemaids, baby sitters, drivers and gardeners," Jumhur said.

Indonesia exported 600,000 labors last year.

Erman told Jumhur to give priority to labor protection and eradicate red tape and extortions so that workers could depart, work overseas and return home safely.

"The government has simplified the labor export procedures and promoted labor training to encourage trained job seekers to work overseas. This will not only help ease the unemployment problem at home but also encourage our workers to go global," he said.

Govt, employers, workers closer to dismissal benefits scheme

2007-01-22T13:32:00.000+07:00

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Employers will be able to breathe easier, the government can hope for more investors in the future and workers need no longer be quite so worried about being laid off once an independent institution to determine severance pay for dismissed workers is established.

The three sides are still discussing the shape of the new scheme -- the severance benefits program -- and which institution will be designated to manage it.

Vice President Jusuf Kalla said the government would issue a regulation on the new scheme, which is expected to help reduce the financial burden on employers, improve the investment climate, create better industrial relations and provide more security for workers.

"The President (Susilo Bambang Yudhoyono) has ordered Manpower and Transmigration Minister Erman Suparno to prepare the new scheme and wants him, along with the employers and labor unions, to finalize it within three months," Kalla said after addressing a meeting Friday with officials from the Manpower and Transmigration Ministry.

"The government could offer the new program through a public tender or seek the approval of workers and employers to appoint (state-owned insurance firm) Jamsostek to take charge of it," he added.

The agreement was reached after prolonged deadlock between the employers and government on the one side, and workers and labor unions on the other, over the proposed revision of the 2003 Labor Law, which requires employers to cough up huge sums in severance and long-service payments to dismissed workers, including white-collar employees.

The legislation has made overseas investors reluctant to invest in Indonesia and, since its enactment in 2003, Indonesia has seen very little growth in foreign direct investment.

In support of the government, employers have prepared a draft law that requires employers to provide long-service and severance payments to workers on gross monthly wages of Rp 1 million (US$110) or less, and allows employers to hire part-time workers for their core operations.

The draft law was greeted by massive labor rallies -- which reached their peak last May Day -- demanding that the government drop it and seek an alternative solution so as to ensure job security. The unions blamed the unconducive business climate on the high cost of doing business here, and the absence of security and legal certainty for investments in Indonesia.

In response, the government asked four state universities to evaluate the 2003 legislation and identify the problems hindering investment growth. The universities' recommendations did not propose a review of the labor legislation, but instead recommended that the government improve the country's infrastructure, issue a new investment law, review the tax legislation and reform the bureaucracy.

The government's proposal to review the labor legislation was part of a series of proposed actions designed to improve the investment climate, as stipulated in Presidential Decree No. 6/2006.

Separately, labor unions and employers confirmed the tripartite agreement, but were still at odds over who would pay for the scheme and what its ceiling would be.

Three major unions -- the Confederation of All-Indonesian Workers Unions (KSPSI), the Indonesian Prosperous Labor Union (KSBSI), and the Free Trade Union (ICTU) -- are demanding that the employers pay for the scheme and that it should cover all workers on monthly wages of up to Rp 15 million. Meanwhile, the employers have proposed that the premium be shared, and that the scheme only cover blue-collar workers, or those earning less than Rp 2 million per month.

The secretary-general of the Indonesian Employers Association, Djimanto, said that despite the differences, both sides have agreed that the scheme would be degressive in nature.

"The less the workers are paid, the more they will receive in severance payments when they are dismissed. Also, we want workers to pay less in premiums, as they do in the case of the four social security programs run by Jamsostek," he said.

He said he was optimistic that the three sides would soon reach an agreement on the scheme's ceiling and its financing so that it could be put into effect by June of this year.

Three foreign companies to quit Batam on uncertainty over wages

2007-01-22T13:26:00.000+07:00

National News - January 10, 2007
Fadli, The Jakarta Post, Batam

Three foreign investors have announced plans to stop doing business in Batam, Riau Islands, saying that inconsistencies in the wage system make it difficult to determine long-term production costs.

Indonesian Industrial Area Association deputy chairman Johannes Kennedy Aritonang told The Jakarta Post that at least three foreign investors in Batam had said they would pull out of the island and move their businesses to other ASEAN countries such as Thailand and Vietnam.

He said the companies had announced the plan after they learned that the city's monthly minimum wage for 2007 had been set at Rp 860,000 (US$95), up from Rp 815,000 in 2006 and Rp 635,000 in 2005.

They said wage increases would be difficult to predict and pose a problem to calculating production costs, making it hard to secure orders from foreign partners offering long-term job contracts.

"It would be difficult for the foreign companies to compete because they could not accurately estimate their production costs. We understand their reasons for shifting their operations elsewhere, but we can't stop them," said Johannes, who is also the managing director of the Panbil Industrial Estate in Batam and the chairman of the Riau Islands Chamber of Commerce.

He declined to name the three companies but said reports they had submitted over the plan showed their dissatisfaction.

Two of the three companies operating electronic assembly businesses in Panbil Industrial Estate, while the third is in the packaging industry and is based in the Sekupang Industrial complex. They employ at least 3,000 workers and have millions of dollars in assets.

"They are confused by the constant wage increases. The hikes are not intended to improve workers' livelihoods but only cause the prices of basic commodities to rise," said Johannes.

He said he was not optimistic that Batam could be developed into a competitive industrial area to compete with Vietnam and Thailand because its minimum wage of Rp 860,000 (US$95) was higher than those of the two countries, where workers are generally paid between $60 and $80 a month.

"Workers' wages should increase in the event of a high inflation rate, but not every year. Wages should be based on performance and not a minimum standard. We don't know how to overcome this problem," said Johannes.

The chairman of the Riau Islands chapter of the Indonesian Business Association, Abidin, agreed that the annual wage increases had only caused the prices of essential items to rise.

"I think it's time to change the concept of the annual wage hike. The government's role is to control the price of basic goods in the markets to prevent them from being raised as (the sellers) wish," said Abidin.

However, he added that debates on the minimum wage between businesspeople and workers often ended in disagreement and frequently resulted in protests that disrupted production.

Government Meets Non-Federation Trade Unions Today

2007-01-09T18:14:00.000+07:00

Monday, 08 January, 2007 | 12:29 WIB

TEMPO Interactive, Jakarta: Today (8/1), the government will meet trade unions that are not members of trade union federations.

This plan was conveyed by Erman Soeparno, Manpower and Transportation Minister, on Friday.

“The meeting is to discuss the plan for revisions to the Workers Social Security Law,” said Erman.

He went on to say that he wanted that the law revisions to be carried out from the bottom up.

Therefore, Erman said he felt it was necessary to have input not only from trade unions in federations but also from non-federation trade unions.

The wish to meet with non-federation trade unions had actually been conveyed some time ago.

However, because internally the non-federation trade unions had not yet been willing to discuss the plan revisions, it is only now that the meeting can be held.

Previously, the Manpower Department had already discussed the law revisions with the Indonesia Entrepreneurs Association and trade union federations.

After the meeting with non-federation trade unions, the government's plan is to hold a tripartite meeting among the government, entrepreneurs and trade unions to unify perceptions regarding manpower regulations.

These revisions to the law are a part of a synchronization process of manpower regulations including manpower law amendments and the composition of government regulations on separation pay for workers.

According to Erman, this synchronization is one of the government's efforts to attract investment and create new employment opportunities.

The government plans to change the system of separation payment from entrepreneurs to insurance system at Workers' Social Security.

Earlier, Vice President Jusuf Kalla said the obligation for separation pay was one of the causes of decreases investment in Indonesia (see: Koran Tempo, 5/1).
Workers’ groups have stated tehir agreement with the government's plan.

However, the amount of money as the labors' right will not change and they have also asked for the premium to be raised from 11.7 percent to 20 percent.

OKTAMANDJAYA WIGUNA

UN Special Reporter Finds Human Rights Violations Among Indonesia’s Migrant Workers

2007-01-09T18:13:00.000+07:00

Wednesday, 20 December, 2006 | 17:19 WIB

TEMPO Interactive, Jakarta: Jorge Bustamante, an United Nations (UN) Special Reporter for Migrant People’s Rights, said that many Indonesia’s migrant workers (TKI) suffer human rights violations.

“They have been raped, made to work s prostitutes and many other violations,” said Bustamante during a press conference at the UN office in Menara Thamrin, Jakarta, Wednesday (20/12).

Human rights violations mostly happened to female migrant workers and children.

During meetings with a number of former migrant workers, Bustamante found out that there are so many other violations related to human rights.

For example, extensive working hours, no break times, salaries that were paid not on time or even not paid and also mental torture.

What was even more surprising, he said, was that under the terms of the memorandum of understanding (MoU) between Indonesia and Malaysia on migrant workers employers are allowed to take away migrant workers’ passports.

“I’m really surprised with this condition,” he said, adding that he felt this point in the MoU would make the possibility of human rights violations against migrant workers even greater.

Another finding that was quite pitiable was the whipping penalty that the Malaysian government has imposed against migrant workers.

“I regret this very much because this is a form of human rights violation,” said Bustamante who during his 10 days of observation in Indonesia, visited and met with TKIs in Entikong—which borders on Sarawak, Malaysia and Tanjung Pinang.

Titis Setianingtyas

Thousands of former aircraft workers start long march

2007-01-09T18:10:00.000+07:00

The Jakarta Post
National News - December 20, 2006

More than 2,000 former employees of state aircraft manufacturer PT Dirgantara (PT DI) began a march (see photo) Tuesday from Bandung to the Presidential Palace in Jakarta, to demand the government pay them a promised Rp 40 billion (US$4.5 million) in compensation.

The march began at about 10 a.m. at the Husein Sastranegara Monument, near the entrance to the company's factory on Jl. Padjadjaran.

Hundreds of former workers, their spouses and children, all wearing orange T-shirts, are participating in the march. They were seen off by their legal advocate Haneda Sri Lastoto.

Before the beginning of the more than 100-kilometer march, participants and their supporters held an emotional prayer.

The journey is expected to take 12 days, with the marchers passing through Padalarang, Rajamandala, Ciranjang, Cianjur, Ciherang, Puncak, Cisarua, Ciawi, Bogor and Jakarta.

"This is our final effort to ask the government to show the political will to address our fate, which has been uncertain for the past three years," said Arief Minardi, an official with the PT DI Workers Union.

A total of 6,561 PT DI workers were fired on Jan. 29, 2004, after having been made inactive since July 2003 when the company filed for bankruptcy.

Marchers wore orange T-shirts, many carrying messages like "Demanding the Government Keep Its Promise", and carried banners reading "SBY -- Forever Bluffing" and "MJK -- What About Your Promise".

The wife of a former employee, Dina, 39, said she was participating in the march with her husband and 10-year-old daughter because it concerned her livelihood.

"I'm tired of the promises. My husband and I have participated in hundreds of rallies, which has depleted our savings. I'm here to demand our compensation because our children have to continue their schooling," said the mother of three.

About 1,350 of the 6,561 fired workers initially refused to accept the offered compensation from the company. They agreed to the compensation after the Central Committee for the Settlement of Labor Disputes approved their dismissals.

However, the company then said it could not afford to pay the money, which would have totaled about Rp 200 billion. The central government stepped in and prepared Rp 40 billion from its budget to pay the compensation in stages, with the rest of the money to be paid by the company from a profit-sharing scheme.

However, the Dec. 15, 2006, deadline to the distribution of the compensation passed with the workers receiving no money, reportedly due to a bureaucratic snag at the Finance Ministry.

"We want the money, not just empty promises," said Arief. He added the march would be halted if the government transferred the due funds to every former employee's bank account. (JP/Yuli Tri Suwarni)

Drivers protest busway system

2006-12-20T01:34:00.000+07:00

The Jakarta Post
National News - December 19, 2006

MAKASSAR: Public transportation drivers in Makassar, South Sulawesi, staged a demonstration Monday against the provincial administration's plan to operate a busway system next year.

The protest left thousands of commuters stranded across the city.

The drivers are worried that the new system will affect their income. "The people will prefer to take the busway and this will decrease our earnings," said a minivan driver.

Stranded passengers were forced to walk or to take ojek (motorcycle taxi). The administration and the local police jointly deployed trucks and cars to help stranded passengers, particularly students.

Data shows that currently there are 4,000 public transportation vehicles in the city, which has a population of 1.3 million -- but there are only 2,800 operation licenses in existence.

Makassar Mayor Ilham Arif said the administration planned to introduce the busway system to provide people with comfortable public transportation. --JP

Workers Reject Regional Wage System

2006-12-20T01:31:00.000+07:00

Monday, 18 December, 2006 | 14:52 WIB

TEMPO Interactive, Jakarta: Around 500 workers took part in a rally held by the Workers Criticism Alliance (ABM) joined in in front of the State Palace, Jalan Merdeka Utara, Jakarta, yesterday (16/12).

They demanded that the government get rid of the existing regional wage system and replace it with a national wage system.

“Revoke the regulations regarding about provincial and regency minimum wages and replace them with a national wage system,” Anwar Ma'ruf, ABM Coordinator, told Tempo.

A national wage system would eliminate many negative effects of regional wage system, according to Anwar.

One of these negative effects is large major urbanization to Jakarta.

“This is because salaries in Jakarta are higher than in the regions,” said Anwar, adding that a lot of workers move to Jakarta to obtain higher salaries.

He criticized the increase in provincial and regency minimum wages in Indonesia, which was only 10 percent.

The Jakarta provincial minimum wage rose from Rp819,000 to Rp900,000 per month, while the Tangerang regency minimum wage from Rp800,000 to Rp882,000 per month.
The national minimum wage, according to Anwar, should be Rp3.2 million per month.

“This is for all types of professions including farmers and drivers,” he said.

This amount was calculated based on the standard of proper living in Indonesia.

The rally participants were workers from Jakarta, Tangerang, Bekasi, Bogor and other cities.
They also demanded the government provide cheap education, health service and housing facilities for workers.

“Expensive education and health services show that the government is applying neo-liberalism policies,” said Alfa, a college student who joined in the rally.

Tito Sianipar

Anwar Ibrahim ashamed of Malaysian govt's unfair treatment of Indonesia's workers

2006-12-20T01:27:00.000+07:00

Jakarta (ANTARA News) - Visiting former Malaysian Deputy Prime Minister Anwar Ibrahim said here he was ashamed of a Malaysian policy under which Indonesian migrant workers could be unfairly punished for their offence like whipping.

"As a Malaysian I feel ashamed to watch them punished in this way. I fully disagree with such Malaysian treatment as it is unfair, un-Islamic and arrogant, and certain aspects including the law on whipping are exaggerated," he said here Monday.

Anwar said Malaysia seemed to forget the merits Indonesia have contributed to the building of Malaysia.

"During hardship, we need doctors, lecturers, teachers, professors and other skilled people (from Indonesia), but in good times we do not need and tend to ignore them," he said.

According to Anwar, Malaysia should not treat Indonesian migrant workers improperly and if the country is no longer in need of them, they are returned in a good manner.

"I express gratitude to Indonesia which has been prudent and patient in dealing with the problem. I can understand if Indonesian people are angry," he said.

Anwar also said he had once sent Malaysian Prime Minister Abdullah Badawi a letter asking him about the policy.

"My wife Wan Azizah also once raised the issue at parliament saying that (such treatment of Indonesian workers) was unfair. If the Indonesian migrant workers were found guilty, just deport them," he said.

Anwar also disclosed that he was once accused of betraying nationalism by going to Jakarta for humanitarian reasons.

"I am human, I maintain humanity and I am not supposed to defend inhumanity," Anwar said.

Anwar was dismissed as Malaysian deputy prime minister in September 1998, following a dispute with then Prime Minister Mahathir Mohammad on economic policies, among other things.

Anwar was jailed and tried for corruption and sodomy, and was sentenced to 15 years in jail. He was released in September 2004, as he was found not guilty of committing sodomy. (*)

December 19, 2006

RI sends 50 teachers to Malaysia for Indonesian overseas workers' children, VP says

2006-12-20T01:14:00.000+07:00

Jakarta (ANTARA News) - Vice President M. Jusuf Kalla said Indonesia has so far sent 50 teachers to Malaysia to teach children of the Indonesians working in the neighboring country (TKI).

"We have so far sent 50 teachers to Malaysia," he said after a meeting with Malaysian Deputy Prime Minister Datok Nadjib Tun Razak here on Friday.

Previously, during his recent visit to Malaysia, Kalla had signed an agreement with the Malaysian government to send Indonesian teachers to Malaysia to teach children of the Indonesian overseas workers there.

To date, Indonesian children in Malaysia could not enter to local schools as they were not Malaysian citizens, while their parents could not afford sending them to private schools.

Thus, it was agreed that the Indonesian government would send teachers and hire them for the children, and the Malaysian government would prepare the school sites.

"There are now some 20,000 children of the TKI`s families. We have sought to send them to local schools and the request will be considered by the Malaysian authorities," Kalla added.

Datok Nadjib is here for a reciprocal visit and will discuss further the implementation of some agreements having been signed between the two nations. The visit is also aimed at increasing the cooperation in the fields of tourism, culture, economy and education.

The Malaysian deputy premier also led a delegation that would also discuss about the borderlines of the two countries.

During the meeting, Kalla was accompanied by Defense Minister Juwono Sudarsono, Tourism Minister Jero Wacik, one of his special staffers Alwi Hamu and his secretary Gembong Priyono. (*)

December 15, 2006

UN human rights special rapporteur visits Indonesia

2006-12-20T01:01:00.000+07:00

Jakarta (ANTARA News) - Indonesia has invited Jorge A. Bustamante, the United Nations` Special Rapporteur on Migrants` Human Rights Affairs, to visit Indonesia on December 12-21, 2006, a Foreign Ministry official said here on Monday.

Wiwik Setiawati, Director of the Human Rights and Humanity Affairs of the Ministry of Foreign Affairs, said that Indonesia had invited the UN`s rapporteur under the request of the world body.

She said that the visit would not imply that the Indonesian government was being suspected of having committed human arights vilations.

"The aim of the special rapporteur`s visit is to obtain first-hand information on efforts and ways carried out by Indonesia in providing comprehensive and effective protection of migrants` rights," she said.

Setiawati said that the visit was intended to help Indonesia in its efforts to improve international understanding, particularly countries employing workers from Indonesia, on the importance of protecting and promoting migrant workers` rights.

The special rapporteur has been active in supporting the efforts by national and regional non-governmental organizations (LSM) --which were sponsored by Komnas Perempuan (Woman`s Rights Commission)-- to formulate a framework for the protection of migrant workers in Asia.

In carrying out its mandate on the international level, the special rapporteur has demonstrated that it hs helped reinforce and advance the protection of Indonesia`s migrant workers` rights.

It is also expected that Bustamante would provide suggestions and recommendations on how to improve the fate and conditions of Indonesia`s migrant workers.

During his visit in Indonesia, Bustamante is scheduled to meet with members of the House of Representatives (DPR), a number of cabinet ministers such as coordinating minister for legal, political and security affairs, coordinating minister for economic affairs, coordinating minister for people`s welfare, manpower and transmigration minister, foreign minister, justice and human rights minister, the attorney general, the national police chief, representatives of NGOs and various human rights commissions. (*)

December 11, 2006

Papuan Youths demand PT Freeport's closure

2006-12-15T12:13:00.000+07:00

Jakarta (ANTARA News) - Tens of youths from Papua demonstrated in front of the Gedung Plaza 89 in Kuningan, South Jakarta, where PT Freeport Indonesia`s Jakarta office is located on Wednesday to demand the closure of the company`s operations in Timika.

The youths from the West Papua People`s Struggle Unity Front (Front Pepera PB) carried posters and banners containing their demands.

"The foreign investor in Timika has not brought any welfare to the locals. People have remained poor in spite of its presence for the past 30 years in the region. Around 37 percent of the local population live below the poverty line and are still backward," the demonstrators` spokesman, Viktor Kogoya, said.

He said the Front Pepera PB had also asked the government to facilitate a political dialogue on various problems facing them.

"The success the government has achieved in settling the Aceh problem must be repeated in Papua. It is high time for the government to settle the Papua problem," he said.

Tens of policemen blocked access to the building so that the dmonstrators could not enter it.

The rally proceeded orderly but the demonstrators were disappointed because there was no response from the company.

"The demonstration happened at lunch time so that many company employees who wanted to go out for lunch could not do so and had to wait until it was over," a security guard said.(*)

December 13, 2006

East Java workers protest new minimum wage for 2007

2006-12-15T12:09:00.000+07:00

National News - December 14, 2006
ID Nugroho, The Jakarta Post, Surabaya

Hundreds of workers in East Java held street protests Wednesday to show their opposition to the new minimum wage level set to be implemented across the province next month.

The protesters from the Alliance of Workers Struggle group called for East Java Governor Imam Utomo to lift the new minimum wage from the planned Rp 746,000 to the alliance's demand of Rp 975,000.

Arriving in trucks and on motorcycles, the protest was made up of workers from Surabaya's factories, with others from Malang, Pasuruan and Sidoarjo later joining the demonstration.

For Malang, the governor set the wage at Rp 743,000, lower than the revised proposal from the regent at Rp 745,109 and the survey of basic needs made by the city's remuneration council at Rp 770,109.

The alliance's spokesman, Jamaludin, said the governor's local Dec. 8 ordinance on the minimum wage was based on an erroneous survey of workers' basic needs.

Meanwhile, the local regency and municipal administrations in the province had failed to pass on workers' demands to the governor, he said.

"It makes no sense that the amount proposed by the regents, mayor and a remuneration council in Surabaya is only Rp 748,000, much less than in other cities in East Java. It's not valid," Jamaludin said.

The alliance came to its wage demand after holding an independent survey on basic needs, he said.

Jamaludin accused regional leaders of taking part in backroom deals before making a decision on the wage, with proposals from several cities, including Gresik, Pasuruan and Malang, handed back by the governor to be revised downward.

"That's why the alliance demands the East Java governor revoke the ordinance and revise the minimum wage. There should be transparency and accountability when determining the wage and workers' basic needs," Jamaludin said.

The alliance has also requested the governor take into account an 8 percent inflation rate when setting the wage.

Meanwhile, the head of East Java's manpower office, Bahruddin, questioned the motive for the protest.

"How can (workers) know that the (provincial government's) survey of basic needs is invalid?" Bahruddin told The Jakarta Post.

He said his office would discuss the matter with the administration.

Wage increase to give 'minimum benefit'

2006-11-25T00:29:00.000+07:00

City News - November 23, 2006
The Jakarta Post, Jakarta

Some factory workers in the city say raising the minimum wage by 9.5 percent does not benefit them, because small increases are eaten up by increases in the cost of living.

"It won't make much difference because of the soaring prices of basic goods," said Dewi, 20, a worker at an East Jakarta garment factory.

The rise will not really affect our lives, said another female worker at the same factory.

The city administration's decision to raise the monthly minimum wage to Rp 900,500 (about US$98), from Rp 819,100 previously, by January, has rekindled old debates.

Advocates say a raise is long overdue. But critics say the move would not help the economy and employers would see higher labor costs as they stepped up average wages.

They also say employers might consider full-time workers "too expensive to hire", creating a permanent army of part-timers.

Lidia, 20, a part-time worker at the same factory said she earned about Rp 25,000 for eight hours' work or about Rp 500,000 a month, which is significantly lower than the official minimum wage.

A government official says the ruling does not differentiate between full and part-time workers.

"It applies to all workers, including part-time workers and contract workers, if they are working for at least seven hours a day, six days a week," Muzni Tambusai, director general of the Manpower and Transmigration Ministry, told The Jakarta Post recently.

A staffer at the factory where Lidia works, who asked not to be named, said: "We do pay some workers the minimum wage set by the city administration, but they are full-time contract workers. Every company does that".

Lidia said she earned less when she worked at a another factory nearby, but quit the job in less than a month.

"I was paid only Rp 25,000 a week. We had to work until late and didn't get overtime pay."

The factory, she said, did not give workers their salary slips.

The wage increase will not likely make much difference to permanent employees either.

"I get about Rp 1 million a month, inclusive of transportation and meal allowances," said Yanto, 40, who has been working in a food factory for 15 years.

When asked about the wage increase, he said, his wage was raised every year in accordance with minimum wage increases and his performance appraisal.

Yanto said workers in the factory had set up a trade union to protect their rights.

"But there is something wrong with the salary scale because old employees don't receive much more than new ones," Yanto said. "The increase will not significantly affect me."

The father of two said his wage was inadequate to support his family, as he paid Rp 210,000 a month in rent.

"I am not able to save anything," he said. (04/06)

W. Java workers demand minimum wage hike

2006-11-25T00:25:00.000+07:00

National News - November 23, 2006
The Jakarta Post

Some 1,000 factory workers from industrial complexes in Cimahi staged a protest outside West Java Governor Danny Setiawan's office in Bandung on Wednesday, demanding a raise in the minimum wage.

They called for a monthly paycheck of at least Rp 880,664 (US$95.72) in order to meet basic needs. Cimahi Regent Itoch Tochija has recommended a Rp 840,000 monthly wage, set to be introduced early next year.

Wednesday's was the most recent in a string of protests in the two weeks since the mayor approved the recommendation. The figure was determined after negotiations between officials, employers and workers' unions. Each province must publicly announce its decision by early December, a month before the new wage goes into effect.

"This is unfair. The regent made a quick but inhumane decision," yelled a protesting worker, Dadan.

The head of the employment office, Bambang Arie, earlier asked the workers to understand the difficult situation companies face. Texile producers have been suffering huge losses due to illegal imports.

A representative from the All-Indonesia Workers Union in Cimahi, Adang Sutisna, said they would demand that the governor postpone negotiations on the province's minimum wage until workers were fairly treated. (JP/Yuli Tri Suwarni)

Union members, police clash during minimum wage protest

2006-11-19T23:03:00.000+07:00

National News - November 15, 2006
Yuli Tri Suwarni, The Jakarta Post, Bandung

Protesters demanding an increase in the minimum wage scuffled with security officers Tuesday in front of the offices of the Bandung regency and local legislative council in Soreang.

Hundreds of textile factory workers from the regency's five industrial centers forced their way into the regency office compound, but were blocked by officers of the Bandung police.

The National Workers Union members from Dayeuhkolot, Baleendah, Katapang, Banjaran and Batujajar demanded that Bandung Regent Obar Sobarna raise the minimum wage from Rp 710,000 (US$74.73) a month this year to Rp 920,000 next year.

The protesters came to the area in convoys of motorcycles. They were stopped by a police rope line.

"What do they think we are ... animals? Why do they simply drive us away? We're the guests of Obar Sobarna," cried Etty, a worker from Dayeuhkolot.

Others traded punches with the police, but no protesters were arrested.

Minimum wage levels in the provinces are currently being negotiated by local governments, employers and workers' representatives. Each province must publicly announce its decision by early December, a month before the new wage goes into effect.

Sodikun, the coordinator of the protest, said it was time for the local administration, councilors and businessmen to raise the minimum wage in line with the results of a survey on workers' basic needs.

Sodikun said the minimum wage of Rp 710,000 per month met only 95 percent of the acceptable living level, and that factories have essentially not objected to the proposed increase.

"The absence of objections shows all employers are capable of paying the higher wages," he said.

Sodikun said the quality of work would be influenced by the mental condition of the workers. They would be enthusiastic about their labors, he said, if they got salaries that met their basic needs.

The protest ended peacefully after local officials agreed to hold meetings with their representatives to discuss their request.

Minimum wage increase adjusted to inflation

2006-11-19T23:00:00.000+07:00

City News - November 14, 2006
Adisti Sukma Sawitri, The Jakarta Post, Jakarta

Although 20-year-old Iwan Efendi has no plans to quit his job as a janitor at an office building in Kebon Sirih, Central Jakarta, he does not exactly enjoy work either.

He has to stay in the office for more than eight hours to keep it clean and comfortable. And for that, he receives Rp 800,000 (US$86.90) a month, slightly below the city's minimum wage.

He said the only reason he stayed on is that a high school diploma did not open many doors in the city.

He seemed indifferent to the news the minimum wage will be raised next year by 9.5 percent to Rp 900,560 from the existing Rp 819,199.

"I don't think it will do much to my salary," he said Monday.

The city settled the amount earlier this month after a price survey of 46 basic grocery items at 10 traditional markets in Jakarta, conducted by the tripartite Jakarta Minimum Wage Settlement Board two months ago.

The board first proposed the minimum wage be raised to Rp 991,998. The administration, however, revised it down to Rp 900,560 after considering the city's economic growth projection of 6.6 percent and inflation projection of 7 percent next year.

Jakarta Manpower and Transmigration Agency head Rusdi Muchtar said that although the raise was not ideal, it would enable the city to provide 71,000 new jobs next year.

"We can't increase it any further without endangering the growth of job opportunities," he said Monday.

Based on Central Statistics Agency research, every 1 percent increase in the minimum wage lowers the number of new job openings by .11 percent.

Jakarta Labor Association chairman Gibson Sihombing, who is also a member of the Minimum Wage Settlement Board, said that although the minimum wage was still far below expectations, it was still better than this year's.

This year's inflation rate of 16 percent negated the 15 percent increase in the minimum wage, leaving workers no better off, he said.

Gibson said that although there was no guarantee the inflation rate would not exceed the projection, it was "a win-win solution" for the city's macroeconomic condition.

The administration and businesspeople must stick to the wage agreement, he said. "The problem is, they never really intend to follow contracts through -- they're only worth the paper they're printed on."

Trade unions in U.S companies in Indonesia still underdeveloped

2006-11-15T21:27:00.000+07:00

Jakarta (ANTARA News) - Trade unions of American companies operating in Indonesia have yet to develop properly, because their management often rejected their existence, an activist said.

"I have recently met Stanley Harsa of the US Embassy labour attache in Jakarta to discus the matter," Indrayana, secretary general the Association of Indonesian Trade Unions (Aspek) said here Thursday.

He said that in the meeting also attended by representatives of Mandiri Trade Unions Federation supervising trade unions in some hotels, they identified some problems, the rejection of the trade unions in US companies in particular.

According to Indrayana, executives of the US firms, mostly US citizens, often rejected the idea.

He took an example that in the telecommunications company Motorolla workers had received a negative response from its management to such idea.

After receiving objection to the stance, he said six regional executives of Motorala in Singapore and some other countries in Asia and the Pacific came to Indoensia to discuss the matter.

According to him, Motorola`s trade union resumed its normal activities although still facing some problems.

The trade union in JW Mariott hotel also had similar problems because the hotel`s management seemed to dislike the formation of a trade union of the hotel.

He further said trade unions in the US, in the banking sector in particular, also did not grow well admidst the companies` rejection and workers` reluctance to join.(*)

Minimum wage upped 10 percent in Jakarta

2006-11-15T21:24:00.000+07:00

National News - November 07, 2006
Ridwan Max Sijabat, The Jakarta Post, Soroako, South Sulawesi

Raising the legal minimum wage by around 10 and 15 percent in Jakarta and West Java will not be enough to improve conditions for low-income workers next year, unions say.

A new, unmarried full-time worker in Jakarta will now be legally entitled to receive at least Rp 900,000 (US$98.7) a month, a 9.95 percent increase in the minimum wage from the current Rp 819,100. Meanwhile employees in the formal sector in West Java must now be paid a minimum wage of Rp 504,000, a 15 percent rise from the current Rp 447,000.

The wage levels only apply to people in the formal sector and exclude those in the non-taxed, informal sector that make up the majority of country's workers.

Minimum wage levels in other provinces are currently being negotiated by local governments, employers and workers representatives. Each province must publicly announce their decisions by early December, a month before they are enforced.

Manpower and Transmigration Ministry director general for industrial relations Muzni Tambusai said workers in other regions with higher living costs, like Batam, were unlikely to get a monthly wage hike higher than the 10-15 percent range.

"The government understands that the present wage levels are insufficient for workers to lift their standard of living but we cannot force employers to meet workers' demands for higher increases because of the continued economic crisis and the unfavorable investment climate," Muzni said.

He said the failure of businesses like garment factory PT Great River Indonesia and state bus company PPD meant the companies were unable to pay thousands of workers' salaries for several months and could not pay them Idul Fitri holiday bonuses.

Labor unions say the planned hikes are insignificant and less than this year's inflation, which is likely to average at 12 percent. They have warned regional governments that industrial action or unrest is likely if wages are not increased.

Syamsul DP, the deputy chairman of the Federation of Chemical, and Mining Trade Unions, which is under the umbrella of the Confederation of All-Indonesian Workers Unions, said his organization would fight for the imposition of a sectoral minimum wage system.

This would encourage more affluent companies to pay higher wages than the regional minimum, Syamsul said.

"The mining, manufacturing, chemical and forestry sectors can (afford to) raise their minimum wage more than the regional minimum," he said.

Secretary general for the Confederation of Indonesian Prosperous Labor Unions Didin S. said delegates had walked out of the last three-party meetings held to determine the minimum wage in Jakarta because the proposed increases were unrealistic.

"This minor hike is part of an unfair remuneration system and we are afraid it will incite labor unrest because workers will remain unable to meet their basic needs," Didin said.

The government has predicted this year's inflation rate would track down to around 6 percent.

Didin said the monthly minimum wage in Jakarta should be set at Rp 1.6 million.

Continuing lower rates of pay would make it impossible for workers to improve their productivity, meet their daily basic needs and take part in training programs, he said.

Govt to set up 3 more special economic zones

2006-11-15T21:17:00.000+07:00

Business and Investment - November 06, 2006
The Jakarta Post, Jakarta

Following the success of the newly established special economic zone (SEZ) covering Batam, Bintan and Karimun islands in Riau Island province, the government will develop similar SEZs in another three regions, a senior official has said.

The three regions are in North Sumatra, South Sulawesi and Bojonegara in Banten.

Investment Coordinating Board (BKPM) head Muhammad Luthfi said Friday that at least 14 regions, including Bali, Makassar, East Java, and North Sulawesi's Bitung island, had been proposed as SEZ, but only Batam, Bintan and Karimun met the minimum standards.

Bojonegara, located on the western tip of Java, is the location with most potential for investment as the government plans to build an international port worth Rp 7 trillion (US$768 million), he said.

With regards to North Sulawesi, he said the province already had the biggest port in Sulawesi and was the center of prime export commodities, including fish, shrimp, cocoa and nutmeg.

Luthfi said that North Sumatra had the same potential as its neighboring Penang, an economic zone in Malaysia, that has begun to lose its allure.

Luthfi refused to specify which parts of North Sumatra and South Sulawesi would be turned in SEZs, saying the official announcement of the new SEZs would be made after Nov. 6, when the Coordinating Minister for the Economy will hold a meeting to discuss the draft law to support the operation of SEZs in the country.

Indonesia launched its first SEZ in June after signing a framework agreement on economic cooperation with Singapore to transform Batam, Bintan and Karimun into SEZs in a bid to draw investment from the neighboring country, which is running out of space for its industries.

The two countries have set up a joint steering committee for policy-making and oversight, whose members include ministries and high-ranked officials from both countries.

On Saturday, the two governments discussed the minimum wage rate that would be imposed in the zone. According to Singaporean officials, the wages should be regulated so that investing in the three islands will be more competitive with popular investment destinations such as China and Vietnam.

Speaking to reporters after the meeting, Coordinating Minister for the Economy Boediono said setting the minimum wage would be one of the main issues to be discussed with Singapore, the main sponsor of the special economic zone.

The minimum rate in Batam is about Rp 800,000 (about US$85) per month at present.

Also present at the meeting were Manpower and Transmigration Minister Erman Suparno and Singaporean Trade and Industry Minister Lim Hng Khiang, who led the Singaporean delegation.

The SEZ is a government-designated area in which companies enjoy various duty-free imports of raw materials and relaxed taxation.

Batam, Bintan and Karimun islands also provide a one-stop investment program offering an integrated service for business permits, immigration issues and tax payments. Investors can have their business permits in less than 14 working days, compared to the current 30 to 60 days, and bypass all licensing laws laid down by the local administrations. (09)

Private firms attack labor export reforms

2006-11-15T21:14:00.000+07:00

National News - November 06, 2006
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Private labor exporters are unhappy with a new government policy that requires the businesses to have a minimum capital of Rp 3 billion and pay a Rp 500 million deposit to the government.

The Indonesian Labor Exporters Association (Apjati) and the Indonesian Manpower Development Association (Idea) say the new ministerial decree is confusing and contains red tape that targets prospective migrant workers.

Apjati chairman Husein Alaydrus said that under the decree, only a few major companies would survive because they would still be able to run branch offices in the regions, training centers with qualified instructors and a wide network including foreign partners.

"It would require a company to have a lot of money to be as professional as the government requires," Alaydrus said in a recent meeting with Manpower and Transmigration Minister Erman Suparno.

He questioned the Rp 225 billion in bank deposits the government had collected from labor suppliers and asked why the minister chose to leave the money with state-owned Bank BNI, which offers an interest rate of only 6 percent, compared with the 9 percent on offer at other banks.

In the meeting with Erman, Idea chairman Adrie Nelwan raised the issue of the numerous illegal fees prospective migrant workers are faced with while organizing their departure documents.

"The bureaucratic procedures have been simplified, so that now prospective workers only have to go through 14 desks instead of the 43 desks of the past, but the red tape remains.

"A worker has to spend between two and three million rupiah to obtain documents from the bureaucracy, from the village level through to the immigration level. Workers are also required to undergo several document checks upon their arrival home," Adrie said.

Workers are also now able to apply for their passports from their home villages, allowing them to obtain the necessary papers within two weeks.

The government has reformed its labor export procedures in a effort to increase the number of migrant workers from the current 400,000 a year to 1.5 million.

Labor suppliers also demanded that the government reform corruption in the bureaucracy and encourage state-owned banks to provide soft loans to workers, as well as cooperating with all countries employing Indonesian workers.

They said the labor export law required six government regulations, two presidential regulations and nine ministerial decrees. Of these, only one presidential regulation and two ministerial decrees have been issued and no government regulations have been set to enforce the law.

Migrant Care and Jakak, two non-governmental organizations that provide advocacy for migrant workers, criticized the reform of the labor export program, saying it had been carried out halfheartedly by Erman in an attempt to please the President and retain his cabinet seat in the event of a reshuffle.

"The President has issued a regulation on establishment of an independent body for labor placement overseas and launched a cheap, rapid and secure labor placement program but the agency has yet to be set up while the Manpower and Transmigration Ministry is still playing its dominant role," said Wahyu.

Jarak executive director Achmad Marzuki said that despite the reform, the labor export program had been frequently abused by unauthorized labor exporters supplying children and women as sexual workers overseas.

"From our recent investigations in Malaysia, Singapore and the Middle East, many children and women have been smuggled to be employed as commercial sex workers in entertainment centers and nightclubs. Many others were sent through the official procedure but then they were sold to pimps. This has happened in East Malaysia, Singapore and Saudi Arabia," he said.

Indonesia to fight modern slave trade with new laws

2006-11-15T21:11:00.000+07:00

National News - November 06, 2006
The Jakarta Post, Jakarta

A senior Indonesian minister has promised the country will introduce new get-tough measures on human traffickers.

State Minister for Women's Empowerment Meutia F. Hatta told John R. Miller, the director of the U.S. State Department's Office to Monitor and Combat Trafficking in Persons, that Indonesia hoped to pass an anti-trafficking bill currently being debated in the House of Representatives into law by the end of the year.

"We have drafted legislation that will allow harsh punishments for traffickers such as deceitful agents, rapists and corrupt state personnel," Meutia said Saturday.

Meutia and Miller, who is visiting Indonesia at the moment, visited Soekanto Police Hospital in East Jakarta. The hospital runs a clinic for the victims of trafficking, usually women and children, that is financially assisted by the U.S.

Indonesia is a well-known source, transit and destination country for trafficking. Men, women and children are traded for sexual exploitation and forced labor.

Victims are sent to countries including Malaysia, Saudi Arabia, Kuwait, the United Arab Emirates, Hong Kong, Taiwan, Japan, South Korea and Singapore.

Many Indonesian women who go overseas to work as domestic helpers are subjected to exploitation and involuntary servitude, while an unknown number of child domestic workers face forced labor.

Meutia said it was hard for the ministry to trace the exact number of victims who had traveled abroad to work legally or illegally, as domestic helpers or sex workers.

"Many of our registered workers in Saudi Arabia, for example, have been transferred to Syria without notification," she added.

The lack of available statistics has meant the crime has long been underestimated by Indonesia.

Meutia sees the legislation as a step forward in the fight against modern slavery in Indonesia.

"Trafficking is something that we have to stop. The bill should be passed as quickly as possible, hopefully by the end of the year," said Miller.

Forty-one countries signed in comprehensive laws on trafficking last year, while the U.S. has had such legislation for six years.

"We give tough sanctions. Why not? They were involved in deceiving, raping and beating. The last two convicts were sentenced to 55 years in prison," said Miller.

Miller, who came to observe the victim assistance clinic in the hospital ward, said that the ward would serve as a model for the U.S., which is yet to develop a similar public facility.

The Recovery Center for Victims of Human Trafficking, which does not charge its patients, receives money from both the Indonesian and the U.S. governments.

The facility, also available in Surabaya, East Java, Makassar, South Sulawesi and Pontianak, West Kalimantan, has given comprehensive medical and psychological treatment to over 1,300 victims of both internal and cross-border trafficking.

"The U.S. is starting to develop education programs in order to change the attitudes of American men on the issue," he said.

Women and children, who are frequently subjected to physical, psychological and sexual abuse, make up 80 percent of victims worldwide. Several factors, such as poverty, exploitative agents and corrupt officials, contribute to trafficking.

"Those workers usually come from underdeveloped countries and go to developed countries," said Miller, who is also the senior advisor to U.S. Secretary of State Condoleezza Rice on human trafficking. (03)

Minimum wage to climb to Rp 900,000

2006-11-07T09:11:00.000+07:00

City News - November 04, 2006
The Jakarta Post

JAKARTA: The city administration has announced it will raise the minimum monthly wage next year by 9.95 percent.

This brings it to Rp 900,560 from the existing Rp 819,199.

Governor Sutiyoso said the increase had been discussed at a meeting with worker and business representatives last month.

"I hope all parties accept the decision," Sutiyoso said Friday.

The local administration set the provincial minimum wage based on economic growth and inflation projections.

It used an economic growth projection of 6.6 percent and an inflation projection of 7 percent. --JP

Adidas Group suppliers close

2006-11-07T09:10:00.000+07:00

Business and Investment - November 03, 2006
The Jakarta Post, Jakarta

The Adidas Group, which produces such brands as Adidas and Reebok, said Thursday that three of its Indonesian suppliers producing footwear primarily for Reebok had ceased, or would cease, operations in the near future, leaving up to 18,000 workers unemployed.

The announcement confirmed a Thursday report in The Jakarta Post saying that 6,500 workers of an Adidas Group supplier had been out of work since its owner's sudden departure from the country.

In a media statement sent to the Post,, the group said that two suppliers, PT Dong Joe Indonesia (DJI) and its sister firm, PT Spotec, had decided to close down their factories, located in Tangerang, late last month due to financial difficulties and (in the DJI case), the departure overseas of its owner.

The two factories employed some 10,000 workers.

A third company, PT Tong Yang Indonesia (TYI), which employs some 8,000 workers, is currently winding down production.

According to the statement, the owner of TYI has advised the Adidas Group that once current orders had been filled, the firm, located in Bekasi, would close for several months to allow it to restructure and secure new financing.

"We are concerned for the workers," said William Anderson, the Adidas Group's social and environment affairs head in Asia.

"In addition to liaising with the trade unions and government, we have reached out to other footwear suppliers in Indonesia to ask if they can offer employment in their factories."

He gave assurances that the closures were not part of any planned consolidation of suppliers by the group, adding that it remained committed to Indonesia.

"Despite the recent events, the Adidas Group remains fully committed to sourcing products from Indonesia."

The group has been manufacturing athletic footwear under the Adidas and Reebok brands in Indonesia for about 20 years.

Indonesia is currently the second largest manufacturing base for the group, with more than 50 factories manufacturing its footwear and apparel products.

Abuse of migrant workers in Malaysia 'rising'

2006-11-07T09:08:00.000+07:00

World News - November 03, 2006
Abdul Khalik, The Jakarta Post, Jakarta

It is a sad story and one over which everyone has expressed concern, yet it continues to be told again and again.

The plight of Indonesia's overseas workers has historically been suspect. Now the latest official data seem to indicate a rise in the abuse of, mostly female, Indonesian workers in Malaysia.

"We have received more reports of abuses of Indonesian maids and workers in the last several months. Last month alone we had three abuse cases, leading to one death," the Foreign Ministry's director for Indonesian migrant worker protection, Ferry Adamhar, told The Jakarta Post here Thursday.

He said at least two cases of abuse had been reported each month this year. This is a significant increase compared to last year.

Officials point to the usual suspects for the predicament of Indonesia's migrant workers: lack of legal protection, the unpreparedness of workers to cope with foreign surroundings, unscrupulous labor companies and exploitative employees.

"Besides a lack of legal protection, most of our workers lack the necessary documents, such as a work permit and visa," Ferry said, adding that "many also misuse the regulation that allows foreign visitors to stay in Malaysia for two weeks without a visa to find a job".

The rise in the number of reported cases could also be a result of better reporting mechanisms, with the Foreign Ministry having increased the number of officials assigned to countries where many Indonesians work.

More than 400,000 Indonesians officially work in Malaysia, most employed as maids, construction workers or shop attendants.

But the unofficial number of Indonesian workers in the neighboring country, according to some estimates, could be double that figure. Many of these workers have entered Malaysia illegally and are not protected by the law.

While a combination of factors has helped create the detrimental conditions many of the migrant workers find themselves in, labor activists also blame authorities in Malaysia for the growing abuse.

According to Suaram, a leading Malaysian rights group, a civilian volunteer force established to help Malaysian police round up illegal immigrants often uses excessive force, causing serious injury to Indonesians and other foreign nationals.

The rights group said Wednesday most members of the volunteer force of more than 400,000 civilians -- known by the local acronym Rela -- were poorly trained and did not understand the basics of human rights.

The volunteers "regularly use brutal methods and excessive force while arresting migrants", Suaram was quoted as saying by AP, adding that it was "a national shame and a dangerous setback for the promotion and protection of human rights in Malaysia".

Suaram cited at least three incidents since July when suspected illegal immigrants from Indonesia, Bangladesh and Myanmar were beaten.

Most were later discovered to have valid immigration documents, it added.

It said volunteers also often forced their way into homes without warrants, destroyed private property and wrongfully detained suspects.

Suaram urged Malaysian officials to cease the use of these civilian volunteers.

Ferry said that to prevent such abuses Indonesian workers headed to Malaysia or any other country must have all the necessary documents.

"The Manpower Ministry and Immigration Office must ensure that our workers have sufficient documentation before they let them leave the country," he said.

The predicament of Indonesian workers abroad is all the more ironic since these 2.7 million workers support families in villages across the country. Migrant workers send some US$2.9 billion home each year.

A grim statistic from the Foreign Ministry highlights the dangers facing the country's migrant workers: more than 300 have died in the past 10 months.

Freeport, Kiani deny firing unionists

2006-11-07T09:06:00.000+07:00

National News - November 02, 2006
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Miner PT Freeport McMoran Indonesia and pulp and paper company PT Kiani Kertas have denied a labor union's claim they intimidated or dismissed workers who tried to organize.

The two firms are among 18 companies and two police precincts reported recently to Manpower and Transmigration Minister Erman Suparno by the Confederation of Prosperous Indonesian Labor Unions (KSBSI) for their allegedly illegal anti-union behavior.

Kiani Kertas spokesman Sukijo confirmed security authorities in Tanjung Redep, East Kalimantan, had deployed 63 Police Mobile Brigade officers to secure the company premises. The move followed a rally to protest the management's rejection of the recent establishment of a new KSBSI union at the company.

"We have vital assets and we don't want the labor unrest to disrupt operations. We need the security officers to ensure the operation will continue," he told The Jakarta Post by phone.

More than 100 workers staged a demonstration Monday to protest the management's rejection of the union at the company and the dismissal of seven activists.

However, Sukijo said no unionists had ever been dismissed from the factory. The management had never intimidated or dismissed workers who wanted to set up a union, he said.

"The workers have the right to unionize but they are required to comply with the law in exercising their rights," he said.

A majority of more than 1,300 workers employed in the factory and its industrial forests have joined the forestry sector Confederation of All-Indonesian Workers Unions (KSPSI), which has been the single partner with the management in negotiations to review their collective contracts.

PT Freeport spokesman Mindo Pangaribuan said management had never prohibited employees from setting up unions. The company had involved the KSPSI in negotiations to renew collective labor agreements, he said.

Freeport, a United States-based copper and gold mining company, employs more than 9,000 Indonesian and foreign workers at its Grassberg mine in Timika, Papua.

The union has also brought the cases to the labor court.

Law No. 21/2001 on workers and labor unions prohibits the management from intimidating and dismissing workers for their activism. It carries a maximum five-year jail sentence and a maximum fine of Rp 500 million against individuals or corporations violating the law.

The Indonesian Employers' Association (Apindo) confirmed it had received many complaints from labor unions about employers rejecting the establishment of new unions in their companies.

Apindo secretary general Djimanto, however, said union leaders often confused legitimate dismissals with unlawful ones.

Recent cases of workers' rights violations as reported by KSBSI

No. Company Location Victim

1. PT Freeport McMoran Timika, Papua 1 unionist dismissed
2. PT Dahana, Berau E. Kalimantan unionists transferred
3. PT Pangan Sari Utama Sorong, Papua 98 workers intimidated
4. Security authorities Pasir regency unionists intimidated
5. PT Rukun Tripilar West Java unionists dismissed
6. Army officials Pasuruan intimidation
7. PT S-4 Dumai Riau intimidation
8. Perum PPD Jakarta 3,000 members intimidated, unpaid
9. PT Mayasari Bhakti Jakarta 7 unionists laid off
10.PT Mitra Surya Eratama Tangerang 40 workers dismissed
11.PT Inti Kimiatama Perkasa Medan 3 unionists dismissed
12.PT Milan Indotex Jakarta unionists not registered with Jamsostek
13. PT Meindo Elang Indah Balikpapan SBSI units excluded from collective bargaining
14. PT Sumatra Sarana
Sekar Sakti Medan rejection by management of SBSI unit
15. PT Bara Jaya Utama E. Kalimantan Workers intimidated by hoodlums
16. PT Karet Alam Aceh unionist dismissed
17. CV Salute, Sukoharjo C. Java nine unionist reprimanded
18. PT Inti Kimiatama Medan rejection of SBSI
19. Berau Police E. Kalimantan unionists intimidated
20. PT Kiani Kertas E. Kalimantan seven unionists dismissed

Source: SBSI

Youth unemployment to get worse over next decade

2006-11-07T09:04:00.000+07:00

National News - November 01, 2006
Ridwan Max Sijabat, The Jakarta Post, Jakarta

Social scientists warned Tuesday that Indonesia's social problems will get worse over the next 10 years because the bulk of the 11 million unemployed will be aged between 15 and 24 years old.

They said such a situation could spur political instability in line with widespread poverty and other social ills.

Payaman Simanjuntak, a professor of labor economics at the Krisnadwipayana University in Jakarta, said that a recent survey conducted by the National Labor Training Board showed that 64 percent, or almost seven million, of the 11 million unemployed in Indonesia were high school graduates or dropouts aged between 15 and 24.

"These young and poor people mainly work in the informal sector because they do not have the skills needed for the formal sector. They will mature and get married in the next decade. They will remain poor and be unable to afford to send their children to school," he told the Jakarta Post.

The International Labor Organization reported Monday that globally the number of jobless people aged between 15 and 24 has risen sharply and warned that the low rate of global economic growth was failing the young.

Payaman predicted that Indonesia's unemployment rate could increase to 20 percent of its roughly 150 million person workforce by 2015, while the number of poor families, currently estimated at 19.2 million, could double.

"There will be no significant changes in the country's human development index and foreign professionals will grab the domestic labor market."

Payaman, formerly the director general for industrial relations at the Manpower and Transmigration Ministry, criticized the government for only focusing on formal education programs.

"Formal education will only reduce the number of elementary school dropouts and produce incompetent, unskilled high school graduates, and we will have no alternative but to focus on exporting maids and semiskilled workers," he said.

Bomer Pasaribu of the Bogor Institute of Agriculture (IPB) said open unemployment and underemployment accounted for 40 percent of the current 106 million working people in Indonesia.

"Besides allocating part of the education budget to finance training programs, the government should feed the people and cure the sick," he said.

He said the government needed to focus on intensifying soft loans for small- and middle-scale enterprises and revitalizing the agricultural and forestry sectors to absorb unskilled job seekers.

Both men were of the opinion that Indonesia's main problems were its double-digit unemployment rate, worsening poverty, poor human resources quality, low productivity and low-performing government officials.

Bomer, a former manpower minister, is also executive director of the Center for Labor Development Studies (CLDS). He said a foreign investment program would not help solve the unemployment problem in the short term. He cited a recent CLDS survey that found that corruption was the largest cause of unemployment, at 21 percent. Bad infrastructure was to blame for 19 percent of unemployment and a complicated bureaucracy for 15 percent, with tax rulings (11 percent), poor human resources quality (9 percent) and labor regulations (4 percent) rounding out the list.

Quoting the 2005 World Bank Report, he said that Indonesia was ranked 115 out of 155 countries for foreign investment, while neighbor Singapore was ranked second.

Workers' right to unionize still shaky in Indonesia

2006-11-07T09:01:00.000+07:00

National News - October 31, 2006
Ridwan Max Sijabat, The Jakarta Post, Jakarta

The Confederation of Indonesian Prosperous Labor Unions (KSBSI) filed 20 complaints with the Manpower and Transmigration Ministry on Monday.

The complaints were made on behalf of workers who claimed they had been denied their right to form unions. Many had been fired or demoted.

KSBSI chairman Rekson Silaban said the cases had been brought to the labor court, but that there was little hope that the claimants would be reinstated in their old positions.

"We asked the minister to campaign for compliance with the conventions that guarantee workers' rights," Rekson said after a meeting with minister Erman Suparno.

Indonesia ratified ILO Convention 87 on Freedom of Association in 1998 and enacted a law in 2001 on labor unions, guaranteeing a worker's right to unionize. The law states that groups of 10 or more workers are free to set up a union and allows for the establishment of more than two labor unions at a company level. It prohibits employers from dismissing, laying off or demoting workers for reasons of activism.

All labor unions must be registered with the Manpower and Transmigration Ministry or its provincial or regency offices. The law carries a maximum five-year jail sentence or a maximum fine of Rp 500 million for companies or employers who discourage, intimidate, or prohibit their workers from setting up unions.

Rekson said that in the 20 cases, 16 SBSI unionists were dismissed, 30 were involuntarily moved to other offices and hundreds of SBSI members were dismissed without any severance payment from the management.

He particularly criticized the management of PT Freeport McMoran Indonesia for encouraging the Confederation of All-Indonesian Workers Union (KSPSI) at its copper and gold mine in Timika, Papua, but dismissing SBSI unionist Siringoringo and allegedly intimidating workers who supported the establishment of an SBSI unit at the giant company.

"Siringoringo was dismissed after he was accused of stealing. There was no evidence that he had stolen anything from his workplace. If the management had evidence, they should have taken him to court, instead of taking the law into their own hands," Rekson said.

He added that Indonesia's corrupt judiciary made it difficult for workers and labor unions to afford the costs of industrial disputes.

Meanwhile, the secretary general of the Indonesian Employers' Association (Apindo), Djimanto, defended employers' authority to dismiss, demote and lay off workers in order to improve companies productivity and efficiency levels.

"Apindo has received many reports of the alleged violation of the workers' right to unionize but after checking with the companies, the managements have been familiar with the law on labor unions and the ILO conventions. In many cases, employers have to dismiss workers because of financial difficulties. When there were several unionists among the dismissed workers, is was incidental. Employers have never dismissed their workers because they were unionists or set up their own unions," he said.

In the case of PT Freeport, Djimanto said Apindo had recently facilitated a meeting between the management and SBSI at its main office. The problem, he said, was not the dismissal of Siringoringo but SBSI's demands for a secretariat at the site in Timika.

"Most Freeport workers have joined KSPSI and only a few dozen are members of SBSI. It would be a waste of money if the management had to prepare secretariats for every labor union to set up at the company," he said.

Residents Blockade Freeport’s Gate

2006-10-31T12:48:00.000+07:00

Tuesday, 31 October, 2006 | 12:16 WIB

TEMPO Interactive, Timika: Around 300 people blockaded the way of PT Freeport Indonesia at the Check Point Mile 28 near the arrival terminal of Moses Kilangin Airport, yesterday (30/10). They demanded that seven people convicted of shooting three gold miners in Tembagapura in August, 2002 be released.

The seven people have been on trial at Central Jakarta District Court. Antonius Wamang, one of the convicts, was sentenced to 20 years imprisonment. The other six were sentenced to 15 and eight years imprisonment. Antonius Wamang, leader of National Papua Troops, was arrested on January 11, 2006 with the cooperation of the US Federal Bureau Investigation (FBI). The case of the shooting by Wamang forced the US to stop the International Military Education and Training (IMET) program and the embargo on spare parts for weapons.

Yesterday, carrying a red banner demanding to free seven Papuans, the angry demonstrators also impelled PT Freeport Indonesia to be shut down and the Indonesian Military (TNI) along with the Indonesian National Police (Polri) troops to be withdrawn from the gold mining area. Due to the demonstration, vehicles heading to and coming out from the company were stopped at Check Point 28.

Head of the Operation Division at Mimika Subregional Police Comm. Alfred tried to persuade the crowd to cool down but failed. Alfred warned the demonstrators to stop before 4pm local time, but the warning was ignored.
Before blocking the entry to the mine, the crowd walked over to Timika District Court to convey the demand.

Johny Kondolele, Timika District Court’s spokesperson, said the demand of releasing the seven defendants has been sent to the Supreme Court (MA). “Until today we haven’t received any response from MA,” said Johny.

Damarin Onawame, son of the defendant Clergyman Isak Onawame, said in his sermon that his parent was turned into scapegoats to cover the business of Indonesia and the US governments.

The case of murder on August 31, 2003 brought into court three of PT Freeport Indonesia’s employees, Ricky Lynn Spier, Edwin Leonburgon and F.X. Bambang Riwanto. In the meantime, seven perpetrators have been arrested at Polri HQ since May 10 regarding the trial process.

Tjahjono EP

Government Not Yet Ready to Sign Convention on Migrant Workers

2006-10-30T20:17:00.000+07:00

Monday, 30 October, 2006 | 14:03 WIB

TEMPO Interactive, Jakarta: I Made Arka, Directorate General of Migrant Worker Placement Management at the Department of Manpower and Transportation, stated that the government has not yet ratified the international convention on migrant workers and their families' protection.

“We're not yet ready with the consequence of similar treatment to foreign workers who are in Indonesia,” he told Tempo on Friday (10/27) at his office.

Manpower and Transmigration Minister Erman Soeparno stated that the government was still internally discussing matters on the convention ratification.

“Not yet, it is still being discussed,” said Erman on the same day at his office.

The convention was declared in New York on 18 December 1990 and was legalized on 1 July 2003.

Now, a total of 34 countries have ratified the convention, with Nicaragua the last country to signing the ratification on 26 October 2005.

As regards this matter response, Wahyu Susilo, a Migrant Care policy analyst, said that the government did not have the initiative for protecting migrant workers.

This was proved by the absence of political decisions for ratifying the convention into a national law.

“They mostly refer to economic paradigms than human rights protection,” said Wahyu when contacted yesterday (10/19).

According to him, if the convention is ratified, the government will have potential integrated migrant workers protection.

It can be part of the protection system at the Committee for Protecting Migrant Workers' Rights at the United Nations.

“We could also ask for inter-state human rights if there was any mistreatment of Indonesian migrant workers,” he said.

NUR AINI

One-third of world's youth jobless : ILO

2006-10-30T20:13:00.000+07:00

October 30, 2006
Geneva (ANTARA News) - The number of unemployed 15 to 24 year-olds has risen sharply over the past decade, leaving about one-third of the world's young people without jobs or in abject poverty, the International Labour Organisation said Monday.

In a report on "Global Employment Trends for Youth", the ILO warned that global economic growth was failing the young. It said about 400 million "new and better" jobs had to be created worldwide to resolve the problem.

People in the 15 to 24 age group are three times as likely to be unemployed as older adults, especially in developing countries where they represent a larger proportion of the labour force, it added.

The number of unemployed youths, who are one of the most economically productive age groups in society, rose by 15 percent to 85 million between 1995 and 2005, according to the ILO.

Some 300 million youth are living on less than two dollars a day, it added.

"Despite increased economic growth, the inability of economies to create enough decent and productive jobs is hitting the world's young especially hard," ILO Director General Juan Somavia was quoted by AFP as saying.

"This worrying trend threatens to damage the future economic prospects of one of the world's greatest assets - our young men and women," he said.

While their global population grew by 13 percent between 1995 and 2005, employment for 15 to 24 year-olds only grew by 3.8 percent.

The report said that even a high standard of education was no guarantee of decent employment for young people.

By far the highest increase in the unemployment among the young over the past decade has occurred in southeast Asia (85 percent), according to the report. (*)

President Yudhoyono promises to eliminate investment obstacles

2006-10-30T20:10:00.000+07:00

October 28, 2006
Shanghai, China (ANTARA News) - Visiting Indonesian President Susilo Bambang Yudhoyono said he would eliminate major obstacles in every sector in Indonesia to ensure the entry of foreign investment into the country.

"I reitrate that I will do my best to eliminate the major obstacles in every important sector," he said when opening the Indonesia-China Energy Forum (ICEF) II in Shanghai, China, on Saturday.

The president made the remarks in comment on the existing interest of Chinese investors not only in the energy but also in the mining and mineral sectors.

"We are endowed with huge mineral and other resources. I hope Chinese companies will invest in these sectors," the president said.

In the governmnt`s efforts to create legal certainty, Susilo said he had asked all governors in the country to conduct coordination, cooperation and better understanding not only in their own jurisdictions but also with the other provinces and correlate their moves with the national policies.

The head of state also explained that Indonesia had changed the way in which it was managing its oil and gas sector with the objective of having a modern and competitive oil and gas industry.

The president said, Indonesia was providing opportunities for investment in its oil and gas sector at the upstream and downstream levels by cutting the operational costs, so as to make it more atractive to domestic and foreign energy companies.

"We also need major investment to finance measures to improve and expand the infrastructure sector," he said.

In addition, Yudhoyono said Indonesia had also a new power policy by creating similarity for all investors through investment scheme for competitive power market, risk distribution inter investors, improvement of the regional government regulation, consumers and people protection.

"We also promote the new policy on coal to step up production so as to meet the increasing domestic demand and control its sustainability and improve its competitiveness in the international market," he said, adding that for Indonesia and China energy had become the key to success in development, to prosperity and stability.

"The prosperity of our people, the health of our economy and our political stability depend on the trust of sustainability and the aviability of energy resources," he said.

Meanwhile, Chinese Senior Deputy Prime Minister Huang Zu in his address said the strategic partnership between China and Indonesia which was agreed on last year should be stepped up in a bid to turn out good results for the two countries.

Regarding the cooperation in the field of energy, it was expected that ICEF II would bring about better results compared with ICEF I which was held in Bali in 2002.

"ICEF I which was conducted four years ago has turned out positive results and the present ICEF II is also expected to bring about better results in energy cooperation," Huang Zu said, hoping that through this forum not only Chinese investors would come to Indonesia but Indonesian investors would also come to China.

President Susilo Bambang Yudhoyono on the occasion was accompanied by Energy and Mineral Resources Minister Purnomo Yusgiantoro, State Enterprises Minister Sugiarto, Head of the Investment Coordinating Agency Muhammad Lutfi and Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) MS Hidayat.

During his five-day stay in China, President Yudhoyono and his entourage would also visit the tourist city of Guilin and Nanning to attend the China-Asean Relations Commemorative Summit and meet Chinese Prime Minister Wen Jiabao.(*)

Bush to visit Indonesia after attending APEC summit

2006-10-30T19:52:00.000+07:00

Jakarta (ANTARA News) - U.S. President George W. Bush will attend the Asia-Pacific Economic Cooperation (APEC) Leaders` Meeting in Vietnam and travel to Singapore and Indonesia, according to a statement of the US Press Secretary.

President Bush will travel to Hanoi, Vietnam, to attend the 14th Asia-Pacific Economic Cooperation Leaders` Meeting on November 18-19, said the statement distributed by the US Embassy`s Public Affairs Service here on Friday.

"At APEC, the President looks forward to continuing his robust dialogue with APEC Leaders on ways to ensure the continued prosperity of the Asia-Pacific region," the Press Secretary stated.

The President will have meetings with President Triet and Prime Minister Dung in Hanoi on November 17, and will hold bilateral meetings with other leaders while at APEC. While in Vietnam, President Bush will visit Ho Chi Minh City.

President Bush also will travel to Singapore and Indonesia during his trip. (*)

President Yudhoyono visiting Shanghai to seek business opportunities

2006-10-30T19:41:00.000+07:00

Manila (ANTARA News) - President Susilo Bambang Yudhoyono said he would make a working visit to Shanghai, China, not only to enhance bilateral relations but also to identify opportunities for Indonesian businessmen to benefit from China`s economic resurgence.

"Our target and objective in visiting China is to find business opportunities so as to serve our national interest. We have to get something from China`s economic rise," Yudhoyono told newsmen Friday aboard the Boeing 737-400 presidential aircraft taking him to Shanghai.

As he was speaking, the plane was flying at an altitude of 33,000 feet over the Malaysian city of Kota Kinabalu toward Manila airport for a stop-over.

The President said his visit to China this time was to follow up on last year`s agreement with his Chinese counterpart, Hu Jin Tao, and Prime Minister Wen Jiabao on cooperation in various economic sectors.

"During my visit to China last year, there was a commitment to increase investment (in Indonesa) by about US$8 billion," Yudhoyono said.

He added that in Shanghai, cooperation deals worth some US$4 billion would be made with a number of energy companies in China in realization of last year`s commitment.

In addition, the president said, various cooperation deals in the fields of electricity infrastructure development, oil exploration, bio-fuel energy would also be discussed during the visit.

"All of this will be discussed to ensure that things will be implemented in a better way," Yudhoyono said, adding that in the Indonesia-China forum he would meet with Senior Deputy Prime Minister Huang Zu and hold "one-on-one" meetings with the chiefs the China National Offshore Oil Corporation (CNOOC), Petrochina, PT Sumber Gas Sakti Prima and PT Bayan Resources.

During his five-day stay in China, President Yudhoyono and his entourage would also visit the tourist city of Guilin and Nanning to attend the China-Asean Relations Commemorative Summit and meet Chinese Prime Minister Wen Jiabao. (*)

Still not certain whether Cepu would start producing gas in 2009

2006-10-25T21:24:00.000+07:00

Jakarta (ANTARA News) - Cepu Block will likely not yet start producing gas in 2009 as the government has predicted, because its operator, ExxonMobil Oil Indonesia (EMOI), is still focusing on producing oil which is expected to begin in 2008, the company`s deputy director, Maman Budiman said over the weekend.

"We also have yet to conduct further drilling to confirm the amount of the gas reserve there," he said.

He said the company would soon open a tender for the procurement of drilling rigs.

The government expressed the hope recently that gas production in Cepu Block could be started early in 2009 to meet domestic demand especially in Java.

Indonesia`s current gas production reached 8,000 to 9,000 million cubic feet per day (MMSCFD) and more than half of it is exported among others to Japan, Taiwan and South Korea in the form of liquefied natural gas (LNG).

The country`s LNG export reaches 27.2 million tons a year, and 18.49 million tons of which, or 68 percent, are exported to Japan.

In 2025 the domestic demand for gas is expected to reach 15,000 MMSCFD. It will be met by developing several new fields that have a lot of reserves such as those in Papua and Cepu, East java.

The Indonesian government also would not renew LNG export contracts after 2010 to get around 8.3 million tons of LNG to meet the domestic demand. (*)

October 23, 2006

Positive Perceptions, Uncertain Investment

2006-10-25T21:11:00.000+07:00

No. 08/VII/Oct 24 - 30, 2006
Tempo Magazine, Cover Story
Mirza Adityaswara
Banking and capital markets analyst.

CAN the rise and fall of stocks in Indonesia serve as a barometer of the success or failure of the government? Of course not. Public ownership of shares and bonds is still at a very low level compared to bank savings. But the performance of the stock exchange, the rupiah and bond yields, could become a barometer of foreign investors’ perceptions of the government’s performance.

There are two types of foreign investor, portfolio investors and direct investors. Portfolio investors put their money into liquid assets and tend to take a short-term view. Meanwhile, direct investors are more conservative because once they invest in a country, it is difficult for them to withdraw quickly.

What about the perception of foreign portfolio investors regarding the performance of the SBY-JK government in its first two years? Seen from the rise in the stock index, the stability of the rupiah exchange rate and the improvement in the yield of State Bonds (SUN), we can conclude that foreign portfolio investors currently have a positive perception of Indonesia.

From October 2004 to October 2006, the rupiah remained stable in the range Rp8,000-Rp9,300 to the US dollar, although it did weaken to Rp12,000 in the third quarter of 2005. The stock index rose 81 percent from 852 to 1,549, and the yield for 10-year State Bonds remained stable at 11 percent, although it did improve to 10 percent in the first half of 2005 and worsen to 16 percent in the third quarter of 2005.

The improvement in Indonesia’s credit rating and the fall in the benchmark Bank Indonesia rate led to the hope that the Indonesian economy would recover in the second half of 2006 and into 2007. The sales figures for motorbikes, automobiles and cement in the second half have started to show a slow recovery.

Foreign ownership of SUNs also rose from Rp10.7 trillion in December 2004 to Rp58.1 trillion in August 2006. This means that Rp47 trillion of foreign funds flowed into bonds in the last two years on the SUN market. And this does not include the inflow to the stock exchange.

The government has managed to use this money to narrow the budget deficit caused by the shortfall in domestic funds. But, on the other hand, the size of this foreign investment portfolio in Indonesia also poses a risk to the stability of the financial system. If investor perceptions turn negative, the Indonesian financial markets will feel the shock.

So which is the more dominant in terms of influence on the Indonesian financial markets in the two years of the SBY-JK government: domestic or foreign factors? Of course, it is domestic factors. But we cannot ignore the rate of economic growth of the United States and China or the Japanese economic recovery, or the rise in mining and forestry commodity prices, which also have a positive effect on Indonesia’s exports, leading in turn to a positive effect on Indonesian financial markets.

After security issues, foreign investors and credit rating agencies pay most attention to macroeconomic stability and economic reforms. Government spending totals, the trade balance, the debt ratio and inflation in Indonesia are compared with the figures in other nations. So there is nothing wrong with the government trying to keep the budget deficit at less than 1 percent of GDP, reducing debts, maintaining the visible trade surplus and reducing inflation. The paying off of the debt to the International Monetary Fund (IMF) without causing tremors in the market is an achievement deserving a thumbs-up.

The financial markets were shaken in the third quarter of 2005 when the rupiah weakened to Rp12,000 to the US dollar as a result of concerns over government spending after oil prices and government subsidies soared. The result was the tough decision to drastically increase fuel prices.

The markets welcomed this move, but now we are seeing the effects: people’s buying power has fallen drastically and poverty has increased. We now realize that the 2005 rise in fuel prices was too steep, far exceeding the ability of the people to pay.

Economic reforms, improvements in governance and the restructuring of state-owned enterprises (SOEs) are also factors under constant scrutiny. The efforts to stamp out corruption are a plus point for the SBY government that its predecessors did not have. These efforts have a short-term negative impact on the economy as many government projects have been delayed. This is a learning process for the good of the Indonesian people in the future.

What feels slow now is the restructuring of the SOEs. We have gone from a regime that was very pro-privatization to one that is anti-privatization. Neither is good. Now, many SOEs cannot expand because the government has no funds to inject. On the other hand, SOEs are unable to seek funds on the capital markets because the government does not want to see its shareholding reduced. As result, our SOEs are being left behind in foreign and domestic markets. Is this what we want?

In the last two years, the only SOE restructuring that has succeeded has been that of Bank Mandiri, because the management were serious about putting the business right and calling in bad debts. Next year, the government will have to decide if it is willing to see its shareholding in BNI diluted because the bank needs Rp3 trillion of capital to meet the requirement that its core capital ratio reach 10 percent by the end of 2007.

The challenge of 2007 is the weakness of the US economy and the narrowing difference between Indonesian and US interest rates. If the US economy slows down more than economists predict, there will be a negative impact on global financial markets. In terms of value, Indonesian shares will still be attractive in the eyes of investors, but they will no longer be cheap compared to, for example, Thailand.

And we should note that investor optimism regarding the financial markets could turn into pessimism if foreign and domestic direct investment, or investment in infrastructure, does not materialize. Without infrastructure in the form of electricity, water and satisfactory roads, it is difficult to hope for economic growth of more than 6.5 percent.

Total domestic investment for the first eight months of this year amounted to only 133 projects worth Rp11.8 trillion—a fall compared to the 151 projects in the same period last year. And foreign investment projects totalled only 628, compared to 633 from January-October 2005. The total value of foreign investment was only US$3.9 billion, less than the US$7.2 billion over the same period last year. Most of the foreign investment was not new projects, but existing investors expanding their businesses.

A report from the World Bank and the International Finance Corporation entitled Doing Business 2007 shows that in terms of investment climate, Indonesia is ranked at 135 of 174 countries. This is woeful. It does state that Indonesia has cut the company registration process from 151 days to 97, but our competitors have also made improvements, and they are more efficient than Indonesia.

The top position is held by Singapore, while other ASEAN nations are ranked higher than Indonesia. For example Thailand is at number 18, Malaysia at 25, Vietnam at 104 and the Philippines is at number 126.

For businessmen, the problems of wages, the number of charges, anti-business bylaws and the euphoria of decentralization add to the confusion. It is no surprise to see the recent trend of Indonesian businessmen expanding their businesses overseas, in countries such as Singapore, China and Vietnam.

If domestic businessmen have lost faith in the investment climate in their own country, how can we hope that foreigners will put their money here?

Aiming at Karaha with Old Weapons

2006-10-24T07:16:00.000+07:00

No. 08/VII/Oct 24 - 30, 2006
Tempo Magazine, Economy & Business

Both the government and Pertamina are refusing to pay respective claims that have been made. The Karaha corruption case will be re-opened.

THIS time around, the “parcel” that was sent from the United States in the run-up to the Lebaran or Idul Fitri holiday was not the one that had been hoped for. On the first Monday of this month, the US Supreme Court again strengthened the win by Karaha Bodas Company (KBC) in its lawsuit against the Government of Indonesia and PT Pertamina, the country’s state-owned oil & gas company.

This is the very end of any possible legal action that can be taken under the justice system in the US. There is no choice left for the Government of Indonesia and Pertamina but to pay the claim made by Karaha Bodas amounting to US$261 million (Rp2.4 trillion). To this amount still has to be added interest of 4 percent per year, and this is calculated from when the lawsuit was first submitted in 1999.

A new problem has now arisen in Indonesia following this decision: who is going to pay the claim, the government or Pertamina? Two days following this heavy hammer blow in New York, Minister of Finance Sri Mulyani Indrawati stated directly the capability to fulfill this order by the highest court in America. “If all that remains is for it to be executed, then go ahead and execute it,” she said. “It’s an old problem, so the funds and whatever already exist.”

Even more explicitly, Purnomo Yusgiantoro, Minister of Energy & Mineral Resources, even directly indicated that funds belonging to Pertamina were to be used to pay this claim. Pertamina’s funds totaling US$271 million are still legally frozen in the Bank of America and the Bank of New York. The freezing of these two accounts was ordered by the Court of the State of Texas back on February 22, 2000.

In December of the same year, the International Arbitration Institute in Switzerland also found in favor of the company owned by FPL Group Inc of Florida and Caithness Energy LLC headquartered in New York. The court also ordered Pertamina and PT PLN, the State Electricity Company, to pay compensation as a result of the cancellation of the thermal-powered electricity generating plant in Garut, West Java.

The compensation figure originates from the total investment of the US$111 million already paid out of the pockets of KBC, plus 30 years of potential profits totaling some US$150 million. The remainder is made up of interest.

At this stage, the situation was not yet really that complicated because all the appeals were still being processed. Because of this, the case was then moved to courts in New York and Delaware. The lawsuit was even being processed in courts in other countries such as Canada, Hong Kong and Singapore.

In Indonesia, opposition came from Pertamina through the Central Jakarta District Court. And up to now, this is the only court that has clearly found in favor of Pertamina.

Lobbying was also carried out in America in order to support the ongoing appeals. One of these was through a request for assistance from the lobbying firm belonging to Senator Robert Dole, the Alston & Bird Law Firm. With services funds of US$850,000 (Rp7.8 billion), Dole and nine other lobbyists have been asked to help in saving the assets of Pertamina and the government from the claws of KBC.

Among other things, they have arranged dinner receptions and invited senior officials in Washington. However, these efforts failed. In March 2004, the appeal court in New Orleans reconfirmed the arbitration decision.

From here, the situation started to look more serious. The problem was that for this lawsuit amounting to US$261 million, all the funds—a total of US$650 million—in 12 bank accounts in America had been frozen. “And not all of them belong to Pertamina,” said Laksamana Sukardi, the State Minister for State-Owned Enterprises at that time. Some of these funds belonged to the government from the proceeds of oil sales.

Because of this, the government presented a request to the court asking that the assets of the government not be included in the freezing of the accounts. This resulted in US$350 million in funds belonging to the government being released, however those belonging to Pertamina remained still frozen in these two banks.

The failures continued when at the beginning of October 2004, the US Supreme Court stated that it was denying any further checking of the materials relating to the lawsuit until such time as the appeals were eventually made final. Based on this decision, the Bank of America then released US$29 million out of the US$300 million belonging to Pertamina that had been frozen in order to give to KBC.

It is the remainder of these funds that Sri Mulyani and Purnomo Yusgiantoro are now referring to as the funds that are ready. However, like Widya Purnama before him, now the new CEO of Pertamina, Ari Soemarno, has been quite clear about his refusal to pay the claim. “Who stopped this project?” asked Ari. “Don’t always put the burden on Pertamina.”

The cooperation project operational contract for Garut was signed by KBC and Pertamina in November 1994. This signing was made at the same time of the summit meeting by economic leaders of the Asia-Pacific Economic Cooperation, in Bogor.

One month later, KBC signed an electricity sales contract with PLN. The hope at that time was that the thermal energy at Karaha would be capable of supplying 400 megawatts of electricity. After a great deal of gossip, these two contracts did however go smoothly because KBC tied up with a local partner, PT Sumarah Daya Sakti, which was owned by the family of former Vice President Sudharmono.

Then the monetary crisis that all but destroyed Indonesia began in the middle of 1997. And on the recommendation of the International Monetary Fund, the government postponed the implementation of a total of 75 infrastructure projects, including Karaha Bodas. There was much protest until Presidential Decision 47/1997 was issued, stating that the Karaha project could continue.

However, this decision did not last a long time. This was because, on January 10, 1998, President Suharto once again issued a presidential decision that the project had to stop totally. This is what made Pertamina unwilling to bear the burden of the compensation demanded in a lawsuit by KBC on its own.

Two years later, also in the run-up to Lebaran, Widya Purnama even stated that there was no claim that had to be paid either by Pertamina or the government. The reason for this was that there were indications that KBC had carried out manipulation and corruption in this project.

“KBC was not honest in its statement about the amount of money it had invested in Indonesia in front of the International Arbitration Institute,” said Widya at that time. He presented evidence from the Development Finance Controller, which uncovered that there had been markups amounting to US$19.2 million as well as unpaid taxes of Rp5.97 billion.

KBC was also considered to have lied by not revealing that it had already received an insurance claim from Berry Palmer & Lyde totaling US$75 million for the cancellation of this project. “There is sufficient evidence,” he said. Because of this, he did not want to pay. “If the government still wants to pay, then I will resign.”

A joint meeting involving Pertamina, the National Police Headquarters, the Attorney General’s Office and the Directorate General of Taxation at the office of the Corruption Eradication Commission, also succeeded in coming to a conclusion: that criminal charges should be brought against KBC. The government therefore hoped that it still had a chance of avoiding having to pay the claim.

Hadi Purnomo, Director-General of Taxes at that time, even stated that the figure of US$126 million was a tax debt that was already in arrears by KBC. He also issued a seizure order on Loedito S. Poerbowasi, a son-in-law of Sudharmono who became the chief commissioner at Karaha Bodas. Together with the police, the Purnomo also stated that Robert McKitchen, Vice President of KBC from the US, had been classified as a fugitive.

Even when things are squeezed as they are at the moment, it seems as if the strategy will be used again. When interviewed by a team from Tempo in his office on Thursday last week, Vice President Jusuf Kalla made a statement that was different to the ministers. According to him, this time neither the government nor Pertamina will pay the claim. “It has to be clear first,” he said.

While the process continues, Pertamina has been asked to send in a request to be allowed to delay payment. “This has already been agreed to by the US Supreme Court,” said Ari Soemarno, one day later. Kalla also explained that the government had already asked the police to continue the investigation into suspected criminal acts at KBC. “According to the Chief of Police, this is clearly a criminal act,” he said.

It also seems as if the Supreme Audit Agency (BPK) does not want to be left out. “This was corruption, collusion and nepotism involving the Sudharmono family,” said BPK Chairman Anwar Nasution. “Why should the state have to end up bearing the burden?” It seems that Karaha will have to delay its celebration party one more time.

Y. Tomi Aryanto, M. Fasabeni and Yophiandi

Balinese Woodcarvings-The Legend of Gold from Dead Wood

2006-10-24T07:13:00.000+07:00

No. 07/VII/Oct 17 - 23, 2006
Tempo Magazine, Economy & Business

Woodcarvers in Bali have a poor standard of living even though their works of art are worth tens of millions of rupiah.

DURING the last three years, I Made Gara has spent much of his time under the hot sun. The palms of the hands of this 53-year-old woodcarver from Desa Mas (literally meaning Golden Village) are really worn out because he has used his carving tools too many times. “Since the bombings, all we’ve had to eat are bills,” he told Tempo last week.

The 2002 Bali bombings—followed by the 2005 Bali bombings—have meant that Gara has had to seek work as a laborer in his neighbor’s rice fields. There are no longer any tourists or tourism guides wanting to view the woodcarvings that he has created. According to the records of the local tourism office, the total of tourists has dropped by 30 percent and the situation has not yet improved.

The livelihoods of the people of Desa Mas are threatened. In this village located 20 kilometers to the north of Denpasar, the capital city of Bali, 95 percent of the villagers work as woodcarvers. The remainder of them left to look for work or have become civil servants. “We were doomed to become carvers,” said I Wayan Mudana, 50, appropriately.

Just like Gara, the carvings of Mudana are now gathering dust in his workshop. In fact, it’s fair to say that the “fate” of Mudana is better than that of his fellow student—both of them were students of Ida Bagus Tilem, the maestro of Balinese woodcarving.

His home has two stories and is considered to be one of the largest in the village. When asked about this, Mudana just smiled. Apparently, this house is “left over” from the good times in the 1980s when people from many different countries were hunting down his woodcarvings.

In 1986, a German tourist invited Mudana to hold an exhibition in his country. And eight of his works of art were exhibited at the National German Museum. He no longer bothered to take part in local exhibitions. Mudana would go to and from Jakarta and Bali in a month.

Since then people started hunting down his works of art. However, he knew that they were not buyers who wanted to collect pieces of art. They were the owners of galleries in Ubud.

The growth in the tourism sector at the beginning of the 1990s meant that investors set up several galleries full of works of art. Woodcarvings became the favorite and best selling works of art. The carvers were happy.

This attitude began to change however when they found out that their carvings were being sold off for 10 times more than they had been paid. Gara was shocked when he discovered that a 3-foot-high carving that he had created over a period of eight months was sold to a foreign tourist for Rp100 million. “This was in spite of the fact that I sold it for only Rp10 million,” he said.

However, Gara was not able to break off his relationships with the guides and the gallery owners. “They had money, I just had to accept the situation,” he said. He had no choice because he had four children plus the workers who helped him to take into consideration. Mudana, who refused to deal with galleries, had to accept that his works of art were just going to end up gathering dust.

Research by Lin Che Wei, the Managing Director of PT Danareksa, now clearly indicates that the artists have not enjoyed the cycle of business of wooden carvings in Desa Mas. Three months ago he visited several galleries in order to find out the price of each woodcarving. He paid visits to almost all the gallery owners, large and small.

The result is that the galleries and tourist guides obtain 50 percent profit on each work of art. “The guides work together with the galleries in order to attract the tourists,” he said.

As an example, he cited a carving, Dewi Sri Landung, by Mudana. This 3-meter-high carving was sold for Rp100 million. This was in spite of the fact that Mudana sold this highly crafted and detailed carving for a price of only Rp30 million.

What takes the longest time in creating a carving, said Mudana, is coming up with the idea. This former student of the maestro Tilem is well-known because of his unique style in creating carvings that follow the shape and the grain of the wood. “The wood grain is already unique and special,” he said.

The carving of Dewi Sri, according to Mudana, had to be in harmony with the legend of the wife of Dewa who was cursed to become a snake but who then helped farmers by guarding their paddy fields. Mudana worked on this creation for a total of 14 months and had eight people helping him cut wood in his studio. Total costs, including transportation, amounted to Rp8 million. Once this was completed, the carving had to be smoothed down and varnished. Mudana paid Rp100,000 per day to the varnishers.

Gus Putra, owner of the Bramastya Gallery, said that working together with tourist guides was a way of gallery owners being able to stay in business. He acknowledged that he paid as much as 60 percent commission to guides. This is why the selling price of a carving can be as much as 10 times as high as the purchase price. “In fact, it’s a bit like suicide,” he said.

Tourists already know the real sales price. They are reluctant to offer more than half price. Foreign tourists, according to Putra, already know standard prices back in their home countries and know that this is five times the price paid to the carver.

Tourist guides deny that they enjoy the lion’s shares of the profits. If they really had been receiving as much as 60 percent commission, said Yeremias Tasi, Chairman of the Tourist Guides Association of Bali, “Then we would have been rich a very long time ago.” According to him, at the very most, the commission from the galleries is 30 percent of the total sales price.

It is this long chain, according to Che Wei, that makes the bargaining power of artists even worse. He decided to do something about it. When he became the host of the Emerging Markets Forum, between September 20-27 this year, Che Wei urged Gara, Mudana and I Wayan Darlun to bring all their carvings to Jakarta and put them on exhibition.

Every developing nation delegate at the forum that was held at the Danareksa Building was greeted by carvings of human legends in several poses, including: Rama, Shita, Kala Rau, Dewi Sri and Men Brayut. Fidel Ramos, former President of the Philippines, and Michel Camdessus, former executive director of the International Monetary Fund (IMF), were astonished to see so many carvings on the first floor of the Danareksa Building.

One day before the exhibition closed, underneath 20 of the carvings on exhibit were cards on which had been written the word “reserved.” Minister of Finance Sri Mulyani, Minister of Trade Mari Pangestu and several other officials were among those interested in the carvings. All of them were discounted by 30 percent.

Seeing this enthusiasm, Che Wei became even more interested in Balinese woodcarvings. In fact, as a state company, Danareksa has a responsibility to help develop small- and medium-scale enterprises. He flew to Singapore, London, Amsterdam and New York in order to introduce Balinese woodcarvings and to try and set up exhibition schedules.

“I was inspired by a book by John Cost, which was called Dancing Out of Bali,” said this economist who made his name when he exposed the Lippo Bank scandal in 2000. Cost, he said, was able to promote Balinese dancing in London and New York in 1950.

In addition to arranging exhibitions, Danareksa will also set standard prices for each carving calculated from the cost of production and the original idea, as well as the copyright. In Bali, anyone can copy someone else’s work of art without fear of being prosecuted for plagiarism. And they succeed.

In the exhibition, Mudana was able to enjoy the correct prices for his works of art. Dewi Sri sold for Rp125 million. This was the most expensive, compared to the other carvings, which were sold on average for between Rp30 million and Rp90 million. “This really is gold from dead wood,” he said.

Furthermore, Desa Mas was founded around 400 years ago after a visit from Danyang Nilarta. Before this Hindu priest from Kediri arrived, the village was named Tegal Tanjung. While he was meditating, Nilarta created a cane. Magically. The cane grew and from underneath there appeared seeds of gold.

Nilarta then changed the name of the village to Desa Mas. “Later, the villagers here will be able to obtain gold from dead wood,” said Nilarta according to a legend in Desa Mas. Hundreds of years later, this prediction has become true. Mudana and Gara now spend much more time at their homes. Creating carvings as they await the exhibitions being arranged by Lin Che Wei.

Bagja Hidayat and Rofiqi Hasan (Bali)

Simalungun Regency—At a Glance

2006-10-24T07:11:00.000+07:00

No. 07/VII/Oct 17 - 23, 2006
Tempo Magazine, Across the Archipelago

SIMALUNGUN Regency is the second largest (after Deli Serdang) rice bowl in North Sumatra province. Aside from rice, the region is also the largest producer of secondary crops, such as corn, cassava and peanuts. Understandably, agriculture is the main economic activity in this area populated by 830,000 people.

Of the region’s Rp4.2 trillion in 2001, 62 percent came from agriculture, followed by plantation products. The main plantation commodity of palm oil is the second largest—500,000 tons in 2001—producer of people’s plantation in North Sumatra, after Labuhan Batu regency. Cocoa and rubber are the other major products of Simalungun.

With 80 percent of the population involved in agriculture, the Simalungun local administration is focusing on the integrated development of agriculture, plantations and tourism. It has allocated 200 hectares at Tapian Dolok subdistrict to become the Simalungun Industrial Zone, formerly the site of PT Good Year Sumatra Plantation.

Like other regencies in North Sumatra with agriculture and plantations as their economic base, the food and plantation product processing industry is being accelerated. The Simalungun local government plans to concentrate on the development of its agro-industry, agribusiness and agro-tourism sectors. The town of Parapat is often recommended in tourist guidebooks as a place to visit when in Simalungun.

Although the quality of its workforce is generally considered to be good, its distribution is uneven. Additionally, the infrastructure throughout the regency is in very poor condition. The KPPOD survey places Simalungun as number 124 among 168 regencies surveyed for its economic competitiveness. GDP per capita in 2004 was Rp6,869,688.

Holidays stink for garbagemen

2006-10-21T08:16:00.000+07:00

The Jakarta Post

JAKARTA: Nobody wants to return home from a holiday to find a stinking bag of garbage still sitting in the middle of their yard.

The city administration, however, assures garbage pickups will follow the regular schedule during the Idul Fitri holidays.

The Jakarta Sanitation Agency will deploy 300 to 400 trucks and 5,000 employees to collect the trash, which is estimated to reach 100,000 cubic meters per day during the Idul Fitri holidays on Oct. 24 and 25.

"We have scheduled the garbagemen's days off so there will be plenty of employees on during the holidays," Governor Sutiyoso said Thursday at City Hall.

"Moreover, their work will be much easier because there will be less people in the city," he added. -- JP

Veep admits unemployment and poverty not yet overcome

2006-10-21T03:12:00.000+07:00

Jakarta (ANTARA News) - Amid a series of successes made by the President Susilo Bambang Yudhoyono - Yusuf Kalla government in the past two years, it was admitted that unemployment and poverty have yet to be overcome.

"In view of current economic perspectives, the country`s current six percent economic growth rate is much better than last year`s 4.5 percent, so are those in trade and inflation. It is true there is a negative grade in unemployment and poverty," Vice President Yusuf Kalla said here on Friday.

However, he added, poverty had to do with some factors prior to the fuel price hike which had caused a high inflation, while the fuel price hike was caused by external factors affected all countries in the world.

Kalla admitted that Indonesia is a big country in terms of population and territory. Therefore, the problems confronting this country are also big. To measure the achievement made by the government, certain standards are also required.

At least, he pointed out, some problems have been succesfully overcome.

"The first is security, justice and peace. Security and peace, frankly speaking are now much better. We have to admit that the present situation is much better than the four years ago," he said.

As to investment, he admitted that it was still short of expectations, but it all depended on law enforcement and others. "At present, there is keen interest in this country."

With regard to legal aspects, particularly in the eradication of corruption, the vice president said the fight against corruption has been going on well.

Because of effective and tight law enforcement against corruptors, many government officials and others have become deterred and refrained from corruption. "Conseguently, many government officials are seeiking guidance and advice for fear of committing corrupt practices."(*)

24 deportees from Malaysia return to W. Kalimantan

2006-10-21T03:10:00.000+07:00

Pontianak, West Kalimantan (ANTARA News) - A total of 24 Indonesian migrant workers and a three-month old baby are returning to West Kalimantan province after being unattended for one year in Jakarta following their deportation from Malaysia for administrative violations, a labour activist has said.

The workers are now on their trip by sea from Jakarta, Coordinator for the Advocation and Case Handling of the Indonesian Migrant Workers Association (SBMI), Lily Pujiati, said when contacted from Pontianak, capital of West Kalimantan province, on Friday.

The Indonesian migrant workers experienced the case in Malaysia between 2004 and 2005, Lily said, adding that among them were the victims of fraud and human trafficking.

"They were once detained in Malaysia for two to eight months," she said.

Following their deportation from Malaysia, the migrant workers were accommodated by the Jakarta Social Affairs Office.

According to Lily, SBMI once contacted the West Kalimantan provincial administration but received no response so that the 24 deportees continued to stay at the Jakarta Social Affairs Office.

"During their stay in Jakarta from January to September, their accommodations were borne by the Jakarta Social Affairs Office," he said.

A member of the West Kalimantan provincial legislative council (DPRD), Katarina Lies, said based on the information she received, the migrant workers hailed from Pontianak and a number of districts bordering Malaysia.

"The migrant workers were deported mainly for administrative violations which led to crimes," Lies said.

In response, she said all the relevant institutions were expected to make coordination to prevent new problems upon their arrival in the province.

"The relevant government institutions should also increase their awareness of problematic migrant workers hailing from West Kalimantan," she said.

West Kalimantan is one of the Indonesian provinces which send a great number of migrant workers to Malaysia both legally and illegally as the province share common borders with the eastern Malaysian state of Serawak. (*)

Floating fish trap workers to stay at sea at Idul Fitri

2006-10-20T17:44:00.000+07:00

Apriadi Gunawan, The Jakarta Post, Asahan

Sadness is clearly visible on the face of Sijon Upong, a 16-year-old worker at a floating fish trap facility off Beting Bawal waters in Asahan regency, North Sumatra, as he will be unable to celebrate Idul Fitri with his family this year.

Sijon has been forced to bury his hopes of joining Idul Fitri celebrations as his employer turned down his request to go home.

Even though he is disappointed, Sijon, continues executing his duties well -- lowering the fish net, pulling it up and wrapping cooked and dried fish.

The adolescent, who did not finish elementary school, disclosed Thursday he had worked at the floating fish trap, anchored about 3.5 kilometers from the shoreline, for the last two months.

Sijon explained that working at the fish trap facility was tiring as he and dozens of other workers had virtually no free time.

"I can only rest when it's time to sleep. Sleep itself is brief as we have to get up early in the morning," Sijon said, disclosing that he is always supervised by his senior.

Sijon was looking forward to getting together with his family during Idul Fitri, even though he had worked there for a short time.

"This is the first time that I will not be with my family during Idul Fitri," he said.

Sijon is one of 22 minors who have not been permitted to go home. They are among 70 workers employed at 15 fish trap facilities near Asahan.

Most of them have already worked more than two months with wages ranging from Rp 200,000 (US$21.05) to Rp 250,000 per month.

Herman, another 16-year-old boy working at the floating facility, shared Sijon's feelings, saying he had worked at the floating facility for seven months.

However, Herman has not received a single cent from his employer. He previously planned to used his wages to buy new shoes and clothes.

Herman said he was also sad that he was not allowed to go home. "I asked permission several times but was always turned down as it is feared there will be no workers to operate the fishing traps," he said.

Herman explained that due to the hard work and harsh conditions, most of the workers were unable to fast as they were rarely sent food by their employers.

"Our food supplies are sent here once a week. The supplies are very limited, they run out before the next supplies arrive," said Herman, who admitted he was fasting despite the absence of food to break the fast.

Herman explained that the owners of the fishing traps stayed in the North Sumatra capital of Medan and other cities, including Tanjung Balai and Asahan.

Responding to the plight of fish trap workers, director of the Child Protection and Assessment Center Ahmad said he was very shocked to hear of it.

He urged all related institutions, especially law enforcers, to take actions against employers who did not allow their workers to go home to celebrate Idul Fitri.

"Law enforcers have to empty the fish trap facilities at least three days before Idul Fitri," he said.

Indian company plans to make motorcycles in Indonesia

2006-10-20T17:41:00.000+07:00

The Jakarta Post, Jakarta

India's third largest motorcycle manufacturer, TVS Motor Company, hopes to start production in Indonesia next year.

The company is currently building a factory at the Surya Cipta Karawang industrial estate in West Java.

TVS sales and marketing director for Indonesia K Vijayakumar said in Jakarta on Wednesday the company's motorcycles would initially be marketed in Java and Sumatra.

Vijayakumar said the company would invest up to US$45 million for the construction of the factory in West Java.

The factory will have a production capacity of 300,000 motorcycles per year and a workforce of around 300.

"The launch of the products will be held in early 2007, he added.

Vijayakumar said the company would focus on the production of bebek (small engine capacity) and sports motorcycles at the new factory.

TVS president director B. L. P. Simha said the company was considering increasing investment in Indonesia, and making the country its production base for Southeast Asia

TVS Motor Company is the flagship company of India's TVS Group, which is made up of 30 companies with total assets of $2.2 billion and 45,000 employees worldwide. With more than 500 dealerships and 2,100 outlets across India, it is the seventh largest motorcycle company in the world.

Other motorcycle firms planning to enter the Indonesian market include Ian Piagio from Italy and Bajaj of India. (09)

Huawei to spend more on training local workers

2006-10-20T17:38:00.000+07:00

Andi Haswidi, The Jakarta Post, Jakarta

One of the world's leading telecom networking and manufacturing companies, Huawei Technologies, has pledged to boost investment in human resource development in order to support the company's expanding business in Indonesia.

"We already have vital operations here. Therefore we require more and more local people to support the operations," Huawei corporate communication director Fu Jun told The Jakarta Post on Thursday.

Currently, Huawei serves over 300 telecommunication operators including 28 of the world's top 50 operators with its products and technical solutions adopted in more than 100 countries by more than one billion users globally. The company's global sales in 2005 reached US$8.2 billion and is projected to increase to US$11 million this year.

Headquartered in Shenzhen, China, Huawei has over 44,000 employees, more than 400 of whom are Indonesian, who mostly work to support the operation of the company's partners in the country.

Huawei provides telecommunication networks both for CDMA and GSM operators. The company's partners in Indonesia include Bakrie Telecom, Indosat and Telkom.

"Our investment in Indonesia right now is not really in manufacturing plants but rather in the development of human capital," Jun said.

"We will train more local talent and engineers, with the hope that we can use their experience in global communication technologies so that they can contribute to Indonesia's growth in the communication sector," he added.

Just last month, the company donated a sophisticated Next Generation Networks telecommunication system worth US$3.6 million to the University of Indonesia.

The donation was in fact part of an agreement signed during President Susilo Bambang Yudhoyono's trip to China last year, where Beijing offered assistance to help Indonesia to improve its information and communication technology.

Information and Communications Ministry then appointed the university as a training center for students and engineers alike.

Huawei itself has paid great attention to research and development. Each year, it invests no less than 10 percent of its sales revenue in R&D.

Around 48 percent of the company employees are engaged in R&D activities, which are distributed in eight research centers all around the globe including in India, the U.S., the Netherlands, Sweden, Russia and China.

Its R&D centers in Shenzhen, Shanghai, Nanjing (all in China) and Bangalore (India) have achieved CMM Level 5 certification from the Software Engineering Institute, a testimony to the company's commitment to world-class software development process management and quality control.

As of 2005, Huawei has applied for more than 14,000 patents, with 2,000 applications filed and approved internationally.

"Our success does not come from providing low prices for our partners but through providing innovations and solutions that can cut down operating costs by 30 to 40 percent," Jun said.

Jun cited an experience with a European telecom company where Huawei had come up with an innovation called the distributed base system, which incorporated a compact hardware that could be integrated into the existing system, hence reducing costs.

Temasek accused of unfair business practices

2006-10-20T17:34:00.000+07:00

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The government has been asked to take action against Singapore's Temasek Holdings, which has been accused of unhealthy business practices in Indonesia's telecommunications sector.

Temasek owns a combined 76 percent share of PT Telkomsel and Indosat, Indonesia's two main cellular phone operators.

"The government and the Business Competition Supervisory Commission (KPPU) should take prompt and harsh action against Temasek for fixing unfairly high phone rates," the chairman of the Federation of United State-Owned Enterprises Workers Unions, Arief Poyuono, said Wednesday after filing a complaint with the commission.

Arief said the federation had found ample evidence of serious violations of the 1999 Antimonopoly Law, adding that all of the evidence had been handed over to the Business Competition Supervisory Commission.

The federation had found consistent patterns in the pricing policies adopted by both PT Indosat and PT Telkomsel, Arief said.

Arief said both Telkomsel and Indosat's shareholders and managements were affiliated with Temasek.

"We are suspicious that Indosat and Telkomsel have been conspiring to fix prices since the two companies' managements are affiliated with Temasek," he said.

He added that there had been numerous complaints from consumers about unhealthy business competition and overly high prices, but all of the complaints had been ignored by the two companies.

Temasek Holdings, through its business unit Singapore Telemedia Technologies Pte (STT), holds a 41 percent share of Indosat, and a 35 percent share of Telkomsel through Singapore Telecommunication (SingTel). The two state-owned companies dominate 80 percent of the GSM cellular phone market in Indonesia.

Temasek Holdings, the investment arm of the Singapore government, also partly owns Bank Central Asia (BCA), Bank Danamon and Bank International Indonesia (BII).

The secretary-general of the federation, Harry Rusli, said consumers were being denied access to inexpensive telephone tariffs because of the "unfair business practices" of Temasek.

"The monopoly is also preventing other cellular phone operators from competing in a healthy manner in the telecommunications sector," he said.

He claimed Temasek had suspended the signing of a mobile virtual network agreement with Bakrie Group, which has launched the Esia product with lower pulse tariffs in 15 major cities, in an apparent attempt to prevent the latter from entering the CDMA market.

Harry called on the government to buy back Temasek's shares in the two state-owned companies, or face charges of violating the Constitution and its requirement that the government manage all sectors that benefit a majority of the people.

He said Telkom and Indosat should not only focus on the cellular phone business, but also on cheap fixed-line telephone networks across the country.

Indosat spokeswoman Adita Irawati said Indosat and Telkomsel were separate business entities and that their cellular phone rates were regulated by the Directorate General for Post and Telecommunications.

"Indosat has never conspired with Telkomsel in setting prices and there is no cartel in the cellular phone operator business, which is regulated by the government," she said.

Suryanda Stefanus, a spokesman for Telkomsel, declined to comment, saying the company was looking into customer complaints.

Govt to announce names of state firms to be privatized in 2007

2006-10-19T23:53:00.000+07:00

Jakarta (ANTARA News) - The government will announce next month the names of state firms to be privatized in 2007, State Enterprises Minister Sugiharto said.

"The names of state firms to be privatized will be determined in November 2006," he said on Thursday.

He said President Susilo Bambang Yudhoyono had set up a team in charge of privatizing state firms. But the team had not held a meeting to determine the names of state firms that would be high on the list of privatization priorities.

The government expects to earn Rp3.3 trillion from the privatization of state firms in 2007 compared to Rp3 trillion in 2006.

Earlier, the Office of State Enterprises Minister said the government would privatize 14 state firms next year. Proceeds from the privatization of three state firms, namely PT Wijaya Karya, PT Krakatau Steel and PT Bank BTN will be used to develop their businesses.

The other 11 state firms are PT Bank BNI, PT Inti, PT Cambrics Primissima, PT Atmindo, PT Kertas Padalarang, PT Askrindo, PT Intirub, PT Reksadana, PT Jakarta International Hotel Development, PT Kertas Blabak, and PT Kertas Basuki Rahmat.

Proceeds from the privatization of the 11 state firms will be used to offset a deficit of the 2007 state budget.

But Sugiharto said his office still had to discuss the names of 14 state firms in an internal meeting, after which they would be conveyed to the team for approval by the House of Representatives.

"The team will determine the names of state firms according to the given criteria and parameters," he said.

Until October 2006, the government had not privatized any of state firms although it had set proceeds from the privatization of state firms this year at Rp3 trillion. (*)

BNI Ready for Haircut

2006-10-19T23:48:00.000+07:00

Thursday, 19 October, 2006 | 14:58 WIB

TEMPO Interactive, Jakarta: PT Bank Negara Indonesia Tbk is now analyzing its non-performing loans, totaling Rp4.7 trillion, in order to differentiate which are adequate to have debt cuts (haircuts) and which are not.

According to Sigit Pramono, BNI’s Managing Director, out of the total non-performing loan at BNI, around Rp10.1 trillion, Rp5.4 trillion will be solved through restructuring without haircuts.

“We will further analyze the remaining, around Rp4.7 trillion, in line with our authority,” said Sigit yesterday (18/10).

He went on to say that BNI will soon sign a credit restructuring agreement amounting to Rp1.4 trillion that belongs to a large group.

Based on Tempo notes, Raja Garuda Mas, belongs to Sukanto Tanoto, is one of the biggest debtors which is in final negotiations with BNI.

Raja Garuda Mas’ debt to BNI totals Rp1.56 trillion.

Based on Government Regulation No.33/2006—revision on Government Regulation No.14/2005 on State/Regional Account Receivable Write Off Procedures and the Finance Minister Regulation No.87/PMK.07/2006 on State/Regional Account Receivable Administration—state banks can carry out haircuts.

However, Sigit went on to say that not all debtors would receive haircuts.

“Only those that really qualify, for example because of external factors such as exchange rates or disasters,” he said.

BNI managed to restructure the non-performing loans of 328 debtors totaling Rp3.41 trillion by October 16, 2006.

The amount of non-performing loans that BNI has restructured up until October 16 is higher compared to the total in September, which reached Rp3.13 trillion.

Of this Rp3.13 trillion of BNI’s credit restructuring, the 20 biggest debtors contributed around Rp900 billion.

Six of them are from the corporate sector: PT Pupuk Iskandar Muda, PT Zeus Citra International, PT Wira Bahari Kencana, PT Gunatex Jaya, PT Bukit Panglong and PT Abadi Genteng Jatiwangi.

Sofian and Suryani Ika Sari

Singapore workers are homeward bound

2006-10-19T13:12:00.000+07:00

Suherdjoko, The Jakarta Post, Semarang

Lasminah smiled brightly upon landing back home in Semarang, Central Java, along with 78 other migrant workers after a spell working in Singapore.

With dollars in hand, the 42-year-old painted a rosy picture of working overseas compared to the usual gloomy stories that fill the Indonesian media.

"I'm home for Idul Fitri. I return home regularly so I'm not confused," said Lasminah as she dragged two large suitcases through Ahmad Yani airport's arrivals hall.

"I've been working in Singapore for eight years as a maid. The pay is good, so I still like working there. My husband and child, who is in high school, live at home," Lasminah, a native of Sukorejo in Kendal regency, told The Jakarta Post.

Another migrant worker, Suwarni from Pati, appeared to be overwhelmed by her two large suitcases and three other bags.

"It's no problem. There are many porters who can carry my luggage to the vehicle where my relatives are waiting," she said.

The arriving migrant workers, while simply attired, were better dressed than their relatives, who came from various villages and towns along the north coast of Java, such as Batang, Demak, Kendal, Pati, Rembang and Semarang, to pick them up.

The workers said they were happy working in Singapore as the pay was quite high.

"I'm getting paid S$500 per month, or about Rp 2,700,000. That's a lot of money to send home to my family," said Lasminah, who wanted her sisters to go to the neighboring country to work like her.

Years of working in Singapore, however, has not changed the migrants much, and they continue to converse with each other in Javanese.

"I'm still Javanese. We usually gather at the Geylang Market in Singapore on our days off. We feel like we're in our own village. So, there's no reason for not feeling at ease there," said Lasminah.

Outside, dozens of vehicles were lined up in the parking lot to pick them up. Some 200 relatives had turned up to greet their families' "heroes", and everyone was soon hugging and kissing each other.

Ahmad Yani Airport duty manager Ahmad Punto Yudhoyono said that in the past three days, many migrant workers had returned home through the airport. Forty-eight female migrant workers had landed in Semarang from Malaysia earlier in the day.

"This airport is closer to their hometowns, compared to the Adisumarmo Airport in Surakarta," said Punto.

Meanwhile, the seaborne Idul Fitri influx has also begun in earnest at Tanjung Emas port in Semarang. A number of ferries -- such as the Eron from Banjarmasin in South Kalimantan; Sinabung from Makassar in South Sulawesi; Senopati from Cirebon, West Java; and Kirana from Sampit, West Kalimantan -- have discharged hundreds of passengers.

"We come from Wonosobo. My wife and I and our two children are returning for Idul Fitri. I work in an oil-palm plantation in Kumai, Central Kalimantan," said Suyatno.

Even though he only earns Rp 27,500 per day, Suyatno said he was happy as he had a regular income and the company provided school transportation for his two children.

At Semarang's Poncol railway station, a number of migrant workers who had just arrived back from Jakarta by economy train said they were determined to continue their journey to Bojonegoro by freight train.

"It doesn't matter if it's less comfortable. The important thing is that we arrive safely," said Sutrisno from Bojonegoro.

Kusnadi, the stationmaster at Poncol, said he had prohibited passengers from riding on freight trains, but they never paid any heed.

Indonesian worker from Blitar dies of malaria in Malaysia

2006-10-19T13:02:00.000+07:00

Blitar, East Java (ANTARA News) - An Indonesian worker hailing from Blitar, East Java, Ana Anwar (30), was reported to have died of malaria in Johor Bahru, Malaysia.

Information obtained from Anwar`s brother Sutaji in Blitar, on Wednesday, said the death of his younger brother was received from Anwar`s friends working in the neighboring country last week.

"Before his death, my younger brother complained that he was having a high fever and headache. In fact he was suffering from malaria. But when he was rushed to a hospital, his life could not be saved," Sutadji said.

The dead body of his brother was still kept in Meing Sing Hospital, Taman Pantai Timur, Johor Bahru.

When we heard about his death, we on behalf of the bereaved family asked for the return of the dead body for burial in Blitar, he said.

In the meantime, on a separate occasion, Secretary General of the East Java Migrant Workers Alliance (ABM) Ja`far Shodiq said his side was still coordinating the necessary steps with ABM branch office in Malaysia.

"We have asked for data on the cause of Anwar`s death and status of the victim during his employment in Malaysia. The next step is getting assistance from the Blitar district administration to arrange the return of the dead body from Malaysia," he said.

He also asked the labor recruiting agency to be responsible for the dead body`s return eventhough Anwar had entered Malaysia illegally. (*)

Sampoerna and Phillip Morris in Strategic Alliance

2006-10-19T13:01:00.000+07:00

Thursday, 19 October, 2006 | 11:53 WIB

TEMPO Interactive, Jakarta: PT Hanjaya Mandala Sampoerna Tbk is to form a strategic alliance with PT Philip Morris Indonesia.

Under this, Sampoerna can use the distribution network and funding from the holding company.

This is a part of five cooperation transactions between the two companies, approved by Sampoerna’s Extraordinary General Meeting (EGM) in Jakarta yesterday (18/10).

The previous two Sampoerna’s EGMs failed to reach any cooperation agreement because of rejection by independent shareholders.

Salman Hameed, Sampoerna’s Chief Financial Officer, said the materials at the latest meeting were broader than those of the previous meetings.

“The approval creates synergy and will benefit Sampoerna,” he said after the meeting.

According to him, there are five business transactions between Sampoerna and Philip Morris, its holding or affiliate company.

Those include distribution, goods and service procurement, license and financing.

In distribution, Sampoerna can be appointed as non-exclusive distributor for certain products or brands.

As regards goods procurement transaction, the company may supply machinery, spare parts and base commodities.

In addition, Sampoerna has obtained a license to produce or distribute Philip Morris’ products or brands in certain areas outside Indonesia.

The company can also make rental agreements or cash management agreements with this United States’ cigarette company.

However, Sampoerna has not yet prepared specific plans regarding the five business transactions.

“They haven’t been identified nor estimated,” said Andrew White, Sampoerna’s Director.

The cooperation alliance is a follow-up to Philip Morris’ entry as the owner of 98 percent of Sampoerna’s shares since last year.

Currently, Sampoerna’s market share is 23.5 percent of the total cigarette industry, up from last year’s figure of 22.4 percent.

On the same occasion, Andrew said that Sampoerna will focus its business on its main core, cigarettes.

So there is the possibility that the company will spin off subsidiaries outside of its main business.

There are two subsidiaries, PT Taman Dayu in golf service sector and PT Agasam in the retail sector.

“If they’re not beneficial, perhaps they will be sold,” said Niken Rachmad, Sampoerna’s spokersperson.

Yuliawati

Deaths of Migrant Workers Increase

2006-10-19T10:54:00.001+07:00

Wednesday, 18 October, 2006 | 14:31 WIB

TEMPO Interactive, Jakarta: Migrant Care has recorded that this year the death rate of Indonesian migrant workers has increased a lot.

Up until this month, 306 cases of deceased migrant workers have been listed.

“The bodies of many dead migrant workers have not yet been returned to Indonesia,” said policy analyst of Migrant Care, Wahyu Susilo, yesterday (10/17) during a press conference in Jakarta.

Wahyu explained the bodies not yet returned included: Maryati of Pencol Randusongo, Ngawi, who died in Malaysia; Nur Fuat of Kendal, Central Java, who died in Korea; and Ipik Tri Haryanti of Karanganyar, Central Java, who died in Japan.

The death rate of Indonesian workers in Singapore who fell from high buildings also increased by 17 percent.

The latest case, Wahyu explained, was the mass rape, robbery and torture of an Indonesian worker by three young Malaysian men.

However, neither the Indonesian Embassy nor the government has reacted regarding this case.

“The government has also failed in the handling of deported workers from Malaysia,” he said.

According to Wahyu, up until 12 October, 12,000 thousand Indonesian workers have been arrested by Malaysian immigration authorities.

Terminal 3 at Jakarta’s Soekarno-Hatta Airport is still full of extortion and deceit.

In fact, in April 2005, the Department of Manpower and Transmigration banned workers from being picked up by their families.

Wahyu said that the building of a special lounge for Indonesian workers in Terminal 2 at Soekarno-Hatta Airport was also a place of extortion and deceit.

“A week after this had been announced by the President, Aay Maryam as well as Budi Warsana were deceived when exchanging money,” said Wahyu.

Nur Aini

Fire, disease, layoffs threaten transient poor

2006-10-18T08:28:00.000+07:00

Anissa S. Febrina, The Jakarta Post, Jakarta

It was a hot afternoon last Wednesday in North Jakarta's Kapuk Sawah, a day that would surely test those who were fasting.

Just when it seemed things could not get any worse, they did.

Workers, students and street vendors living in the crowded kampong witnessed a terrible scene: their homes, burning.

Several families were able to rescue their belongings. They sat surrounded by their mattresses, TVs, DVDs and clothes. 35-year-old factory worker Darmiyono, however, had nothing left.

"I had no time to rescue anything. I was too late," the man said. In less than 20 minutes, his family of five suddenly had nothing: no shelter, and not a single possession but the clothes they were wearing.

Suddenly, they were poor.

Not far from the area, in a kampong in Kapuk Muara, an 80-year-old widow talked about how her three children were forced to drop out of elementary school when her husband died of tuberculosis 20 years ago.

"We were hoping that our children could use their education to find a better life than the one we had. When they had to leave school because I had no money, I immediately thought they could not (escape poverty)," Lindahwati said.

Conventional wisdom would blame fate for Darmiyono and Lindahwati's poverty.

Studies and reports, on the other hand, cite more complex causes of transient poverty. Surging inflation tops the list, since it leaves those who were slightly above the poverty line suddenly unable to purchase basic necessities.

A March report from the Central Statistics Agency found that some 30.29 percent of the "almost poor" population, along with 11.82 percent of the "poverty-prone" and 2.29 percent of the "non-poverty prone" had joined the ranks of the poor this year.

The rising prices of staple foods, transportation and housing were listed as the cause.

But in a city like Jakarta, where the poor live in crowded slums where houses are attached to each other and sanitation seems to be non-existent, fire and infectious diseases are more threatening than inflation. With the addition of layoffs, Jakarta's poor face a wide variety of hazards.

Fire-prone areas like North Jakarta's Penjaringan and Pademangan see their residents move up and down the poverty line on a regular basis.

In the first nine months of 2006, there were 351 fires, mostly in crowded kampongs, causing a total loss of Rp 52 billion (US$5.6 million). Last year there were 686, with a total loss of Rp 144.7 billion.

According to a 2003 study, Jakarta's slums sprawl over a total area of 1,663.71 hectares, with a population of 555,540.

To achieve this year's theme of "Working Together out of Poverty", as outlined by today's International Day for the Eradication of the Poverty, it would surely take more than just direct subsidies. There must also be steps to ensure that people do not fall into poverty by losing all their property to fire, or losing a breadwinner to an infectious disease.

Government Breaks ExxonMobil’s Contract

2006-10-18T08:06:00.000+07:00

Tuesday, 17 October, 2006 | 16:02 WIB

TEMPO Interactive, Jakarta: The government broke ExxonMobil’s contract in Block D-Alpha Natuna although the United States’ oil company insists it will continue activity until 2009. Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the contract stipulates that ExxonMobil’s activity in Natuna ends in 2005. “Automatically the contract ends and it doesn’t mean that the government stops the contract arbitrarily,” he said.

According to Purnomo, the government has a strong reason to claim that the contract automatically ends based on the contract’s Articles. “If ExxonMobil still persists, that’s fine because the government has already given a chance to fulfill Natuna Block’s commercial viability,” he said.

The Head of the Oil and Gas Upstream Executive Agency Kardaya Warnika said, “Let them say anything, what can they do?” He said two years after the contract ended in 2005, ExxonMobil still did not carry out activity in line with the contract. Although this is so, ExxonMobil said it will call on gas buyer, Petronas, but the contract is over.

Before, ExxonMobil Oil Indonesia’s President Director Peter L. Coleman, said based on ExxonMobil’s comprehension, they have the right to extend the contract two years twice after the contract ended in 2005. On the condition that he stays committed to developing Natuna.

He explained he has been struggling to develop Block D-Alpha Natuna. In addition, currently negotiation with one of the buyer candidates, Petronas, has come close to agreement.

Gas production, said Coleman, is targeted to be achieved after four or five years developing. For every one billion cubic feet per day, around US$10 billion is required. Gas potential in Natuna totaled 220 trillion cubic feet.

Coleman said, 100 percent profit-sharing for the contractor and zero percent for the government does not mean that the government does not gain anything. The government will have around 50 percent of Natuna gas sales revenue in the form of taxes and bonuses.

Muhamad Fasabeni