Janeman Latul & Anita Rachman – Newly installed business representatives in the National Tripartite Agency for Industrial Relations said on Tuesday that during the ongoing two-day meeting of the body they would ask that the current worker relations law be revised, arguing that it was detrimental to local businesses.

"We will ask again that it be reviewed and revised," said Djimanto, secretary general for the Indonesian Employers Associations, or Apindo, in an interview on Tuesday. "All the clauses involved with strikes and contract terminations, including compensation, put a huge burden on our hands, especially during the current economic crisis."

The law, which the Indonesian government regards as a balance between worker and business interests, was passed in 2003. However, employer associations have been protesting it ever since. In 2007, Apindo asked that the law be revised, but the government declined to do so.

"Worker contract termination is not only about severance, working year rewards, etc.," Djimanto said. "It's counterproductive to our businesses because the more permanent staff we have, the more burden it is. I think we would have no problem if a worker has a salary of about Rp 2.5 million [$233] per month, but what if they get Rp 25 million? It's killing us."

Hariyadi B Sukamdani, also from Apindo, said the law was discouraging businesses from hiring permanent staff, and that the business community was turning to outsourcing schemes instead.

He said the law required companies to sequester 32 percent of workers' salaries, including 11 percent for provincial minimum salary, 18 percent for the social security funds or Jamsostek and 13 percent to cover contract terminations as stipulated in the law.

Worker union representatives immediately protested any revision, charging that the business community was merely seeking more profit by sacrificing worker well-being despite the fact that Indonesian salaries were among the lowest in Southeast Asia.

"Apindo says the law is not investment-friendly but it is obvious that they should have to pay for social security and the minimum salary," said Said Iqbal, chairman of the Indonesian steel workers unions and a member of the tripartite forum. "They're just trying to find a way to profit by cutting their expenses. That's why they turn to outsourcing."

Both Hariyadi and Djimanto said they did not like outsourcing work, but that it was their only option. "It is hard to develop a working culture among outsourced workers because they keep changing, but it is a dilemma we face because of the law," Djimanto said.

The agency is comprised of business owners, labor unions and government representatives and seeks to improve communications among the three parties.