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Ada Pertanyaan? Hubungi Kami Nadia Maharani, Ady Thea
The continued weakening of the Indonesian rupiah against the US dollar is contributing to slow economic growth across the country. Indonesian labor is thus facing the possibility of mass layoffs as companies face production difficulties due to the prices of imported raw materials spiking. In a bid to prevent such a hugely negative outcome, members of the Indonesian Labor Movement (Gerakan Buruh Indonesia – “GBI”) are urging the government to take swift and decisive action.
Indonesian Labor Federation President, Said Iqbal, has criticized the government for underestimating the current economic downtown. Citing data compiled by the Indonesian Textile Association, Iqbal claims that approximately 100,000 workers are in danger of being made redundant, with the majority of these terminations being the result of companies facing foreclosure.
“The current economic situation in Indonesia is affecting labor but is capital in nature,” explained Iqbal on Monday.
The hike in the USD exchange rate and the global economic slowdown are having a huge impact on Indonesia. Electronics industries, for example, are not only having to pay extra to get their hands on imported raw materials, but are also increasingly unable to sell their products, due to an economic climate which is seeing the disruption of international market traffic and reduced consumer spending.
The worry is that if the government fails to formulate a relevant policy in order to deal with the current situation, then the number of workers facing layoffs will exceed the Indonesian Textile Association’s already extremely serious estimate. Demanding that the government take action, the GBI has thus urged that a concrete policy be rolled out as soon as possible.
The GBI is demanding that the government come up with an effective policy to boost consumer spending. Such a policy could involve raising the minimum wage and bringing back the direct cash-assistance program initially implemented by former President Yudhoyono in order to lessen the impact of the 2008 global crisis. Furthermore, the government is also being urged to help industry by allowing businesses to take advantage of cheaper electricity rates and logistics costs.
According to Iqbal, the government’s underestimation of the negative economic climate is being worsened by Minister of Employment Regulation No. 16 of 2015, which repeals the mandatory use of Indonesian language for foreign workers.
In order to press its points home to the government, the GBI held demonstrations across 20 Indonesian provinces on 1 September 2015. The Presidential Palace was also a primary target for the movement and some 30,000 protesters gathered there in order to voice their concerns.
Also critical of the government is Subianto, the Federation’s Secretary General, who is demanding an immediate overhaul of rupiah-dollar exchange-rate policy. Failure to do so, he believes, will result in increasing industrial bankruptcies due to the high price of imported raw materials.
“If the exchange rate does not cool down immediately, then workers will become the victims, because the easiest way out is for companies dealing with these setbacks to limit their human resources,” Subianto acknowledged.
The Labor Federation Secretary General is demanding that the government amend Regulation No. 16/2015 and strengthens its policies relating to foreign workers before the Asean Economic Community agreement on the free movement of labor comes into force on 1 December 2015. This will hopefully offer some protection to domestic workers and fresh graduates against a possible wave of widespread unemployment.
(sp)
Nadia Maharani, Ady Thea
The continued weakening of the Indonesian rupiah against the US dollar is contributing to slow economic growth across the country. Indonesian labor is thus facing the possibility of mass layoffs as companies face production difficulties due to the prices of imported raw materials spiking. In a bid to prevent such a hugely negative outcome, members of the Indonesian Labor Movement (Gerakan Buruh Indonesia – “GBI”) are urging the government to take swift and decisive action.
Indonesian Labor Federation President, Said Iqbal, has criticized the government for underestimating the current economic downtown. Citing data compiled by the Indonesian Textile Association, Iqbal claims that approximately 100,000 workers are in danger of being made redundant, with the majority of these terminations being the result of companies facing foreclosure.
“The current economic situation in Indonesia is affecting labor but is capital in nature,” explained Iqbal on Monday.
The hike in the USD exchange rate and the global economic slowdown are having a huge impact on Indonesia. Electronics industries, for example, are not only having to pay extra to get their hands on imported raw materials, but are also increasingly unable to sell their products, due to an economic climate which is seeing the disruption of international market traffic and reduced consumer spending.
The worry is that if the government fails to formulate a relevant policy in order to deal with the current situation, then the number of workers facing layoffs will exceed the Indonesian Textile Association’s already extremely serious estimate. Demanding that the government take action, the GBI has thus urged that a concrete policy be rolled out as soon as possible.
The GBI is demanding that the government come up with an effective policy to boost consumer spending. Such a policy could involve raising the minimum wage and bringing back the direct cash-assistance program initially implemented by former President Yudhoyono in order to lessen the impact of the 2008 global crisis. Furthermore, the government is also being urged to help industry by allowing businesses to take advantage of cheaper electricity rates and logistics costs.
According to Iqbal, the government’s underestimation of the negative economic climate is being worsened by Minister of Employment Regulation No. 16 of 2015, which repeals the mandatory use of Indonesian language for foreign workers.
In order to press its points home to the government, the GBI held demonstrations across 20 Indonesian provinces on 1 September 2015. The Presidential Palace was also a primary target for the movement and some 30,000 protesters gathered there in order to voice their concerns.
Also critical of the government is Subianto, the Federation’s Secretary General, who is demanding an immediate overhaul of rupiah-dollar exchange-rate policy. Failure to do so, he believes, will result in increasing industrial bankruptcies due to the high price of imported raw materials.
“If the exchange rate does not cool down immediately, then workers will become the victims, because the easiest way out is for companies dealing with these setbacks to limit their human resources,” Subianto acknowledged.
The Labor Federation Secretary General is demanding that the government amend Regulation No. 16/2015 and strengthens its policies relating to foreign workers before the Asean Economic Community agreement on the free movement of labor comes into force on 1 December 2015. This will hopefully offer some protection to domestic workers and fresh graduates against a possible wave of widespread unemployment.
(sp)