http://www.thejakartaglobe.com/home/indonesian-workers-take-to-streets-on-may-day/515362
Indonesian Workers Take to Streets on May Day
Jakarta Globe | May 01, 2012
As more than 160,000 workers held rallies across the country to mark May
Day on Tuesday, an economist said the government had its own work to do in
improving the welfare of laborers.
Enny Sri Hartati, an economist with the Institute for Development of
Economics and Finance (Indef), said one of the reasons companies were
reluctant to raise the wages of their workers was the prevailing red tape
and high-cost economy.
"The high-cost economy is caused by a complex bureaucratic process and
bribery. The government should be able to address this through
bureaucratic reform," she said.
The rallying cries from workers on May Day were for better wages and an
end to outsourcing, and demands that May 1 be declared a public holiday.
There were no reports of violence as of press time.
Enny said that with energy accounting for 15 percent to 20 percent of
employers' costs, "if there were cheaper alternative energies, then
industries would be more efficient and workers' wages would be more
appropriate too."
It is the government's responsibility to facilitate the development of
these cheaper energy alternatives, she added.
The manpower and transmigration minister, Muhaimin Iskandar, said on
Monday that the state would introduce several initiatives to improve the
lives of workers, but Enny was not impressed. She said the proposed
schemes and their targets were limited in scope.
Muhaimin said the government would raise non-taxable income to Rp 2
million from the current Rp 1.3 million, build three hospitals for
workers, ensure cheap transportation in industrial zones and provide
housing for laborers.
Enny said these incentives needed to be accompanied by social and health
insurance for workers. She acknowledged that the government was making
progress in preparing the Social Security Organizing Body (BPJS) to manage
the National Social Security System (SJSN).
On the labor side, she said one block to better pay was the low skill
level of many workers.
"More than 50 percent of workers are only primary school graduates, so
there are lots of workers with low pay. But there are also skilled workers
[who are] still paid below minimum standards," she said.
The latest official data, from August 2011l, put the work force at about
110 million people, 49.4 percent of them with only a primary school
education.
The same data showed the average minimum monthly wage in the country was
Rp 988,829 ($107), among the lowest in the region. In Thailand the average
minimum pay is $9.75 per day and in Malaysia it is $297 a month. Vietnam,
while paying its workers less than Indonesia, recently raised the minimum
wage by 27 percent to about $50.
Sofjan Wanandi, chairman of the Indonesian Employers Association (Apindo),
said the organization was encouraging members to provide skills
development for their workers. Apindo, he said, is also in discussions
with the Manpower Ministry to conduct skills improvement training.
"Apindo," he said, "is ready to facilitate access for anyone willing to
provide guidance, training, exercise and partnership to hold training
programs."
Sofjan cited the case of the Singapore Labor Foundation, which provides
skills training coordinated by companies, the government and labor unions.
A report on global economic competitiveness, issued by the World Economic
Forum, placed Singapore as the world's third most competitive economy.
The World Bank also named the city-state as the country where it is
easiest to conduct business in 2012. Although it does not have a statutory
minimum wage, Singapore's work standards and requirements are said to
provide the opportunity for higher earnings.
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