Devi Asmarani, Jakarta – The Indonesian government yesterday temporarily revoked a controversial labour decree which cuts long-service payments, in a bid to calm violent street protests carried out by angry workers over the last three days.
The decision to "delay the implementation of the decree" was made yesterday evening in an emergency meeting between Chief Security Minister Agum Gumelar and Manpower Minister Al Hilal Hamdi with labour union leaders, representatives of the Indonesian Chambers of Trade and Industry, and the Indonesian Association of Employers.
The decree which was issued this year cuts severance pay for workers who are dismissed for incompetence, resign or retire early. It went into effect following complaints from employers on the excessive cost incurred by long-service payments. It has not yet been decided when or whether the decree would be imposed again.
Chairman of the Federation of Indonesian Workers Union Jumhur Hidayat said a team comprising representatives of manufacturers, workers and the government would be formed within a month to further discuss the contentious labour issues. "The team will work on new arrangements on the labour issues," he said after the meeting. In Gresik, East Java, yesterday, protesting workers clashed with police as they tried to enter the capital city of Surabaya. Police blocked the streets and fired tear gas to break up the protesters.
Dozens of people have suffered injuries in clashes with police during street demonstrations in East Java towns in the last two days.
In Bandung, West Java, police said they had arrested 98 people for allegedly provoking the acts of destruction on Wednesday, when protesters burned scores of cars and motorcycles and vandalised the local legislature building.
The violence in the last three days has raised questions over who might be behind the demonstrations. Mr Agum said the labour protests were politically motivated.
Quoting an opinion poll, which he did not identify, he said: "The people are of the view that the actions are political." Labour Union leader Mochtar Pakpahan backed his statement, saying workers were not behind Wednesday's riots in Bandung.
"In the current situation, it is normal if workers are angry and emotional, but the rioters in Bandung were not workers. They were not just demanding the lifting of the decree," he said.
The violence has crippled businesses and manufacturers at the affected areas. Head of the Textile Producers' Association in West Java Lili Asjudiredja said the textile manufacturers in Bandung estimated that they had suffered 40 billion rupiah in losses.