Tito Summa Siahaan – A group of 10 business associations called on the government to stand firm to curb "excessive behavior" in labor protests. The group said the spate of labor rallies has turned into a serious criminal offense and is hurting the country's business climate.
Franky Sibarani, the secretary general of the Indonesian Food and Beverage Association (Gapmmi), a member of the group, said that several labor unions have threatened to stage a rally that could disrupt factory production and public facilities.
He was making his comments in reference to plans by All Indonesian Workers Union (KSPSI) and the Confederation of Indonesian Workers Unions (KSPI) to stage a strike and a large-scale rally on Oct. 3, demanding that the government end outsourcing practices and increase wages.
"Such things have occurred in the past, which is a cause for concern. So far there has been no firm action from the government," Franky added. He said that due to the spate of labor disputes, many companies have halted their investments or put expansion plans on hold.
He also claimed that business owners have followed the government's regulations in providing a better wages and living conditions for workers. "There are few chances for business-owners to break the rules because there are many labor unions following their every step," he added.
KSPI president, Said Iqbal, claimed that about 2.8 million workers are expected to join the street-protest and will close industry centers by force if needed.
Suryadi Sasmita, secretary general of the Indonesian Employers Association (Apindo), said that recent developments in the labor situation in Indonesia have prompted several foreign investors from Japan and South Korea to put their investment plans on hold. "Although it does not necessarily mean that they will cancel their plans here in Indonesia," he added.
Labor disputes have become a recurring issues amid Indonesia's robust economic development. Last week, some 10,000 workers staged a rally against outsourcing practices. The demonstration, though, was small compared to the January rally when thousands of workers occupied a toll-road in Cibitung, Bekasi over a wage dispute.