Linda Yulisman and Ridwan Max Sijabat, Jakarta – Vice President Boediono has promised that the government will work extra hard to maintain political stability ahead of the general elections next year so that the possible escalation of political tensions does not affect business.
Speaking in his address during the closing of the Indonesian Employers' Association (Apindo) congress on Wednesday, the Vice President said that the government would not allow labor protests and other forms of security disturbances to cause political instability.
Boediono said President Susilo Bambang Yudhoyono had ordered Coordinating Political, Legal and Security Affairs Minister Djoko Suyanto and all ministers, as well as the Indonesian Military (TNI) and the National Police, to enforce the law and ensure security for all businesspeople.
Similar instructions have been given to Coordinating People's Welfare Minister Agung Laksono and Coordinating Economic Minister Hatta Radjasa to solve all labor and economic issues so that the country's target of achieving economic growth of over 6 percent a year will be achieved.
"The government gives the business community a security guarantee and legal certainty to maintain our economic momentum, international confidence in Indonesia and to ensure a smooth transition to the next government," he said.
Indonesia will hold general elections and its third direct presidential election in 2014. Yudhoyono, now in his second term, is constitutionally barred from seeking a third term in office.
The Vice President said that the government vowed to sustain a conducive business climate through all necessary measures so that businesspeople could still go about their business activities well in the coming years.
"I agree with Apindo that we have to develop strong team working skills to avert shocks that are detrimental to all of us during this transition period. We want everything to run smoothly," he said.
He admitted that the fuel subsidy had become a contentious issue, heavily affecting political stability, but said the excessive consumption of subsidized fuel had worsened the country's trade balance to record an accumulative deficit of US$402.1 million in January and February.
The trade deficit has put heavy pressure on the rupiah since late last year, given its limited supply. The country's forex reserves fell to $104.8 billion at the end of March from $112.8 billion in December, according to Bank Indonesia (BI).
He said the government would decide on the issue in the near future in a bid to eliminate uncertainty and negative impacts.
Apindo chairman Sofjan Wanandi previously warned the government of labor rallies, anarchism and illegal levies. Such activities could cause political instability if they were not properly handled, he added.
According to him, the government had no choice but to enforce the law and give investment certainty to maintain economic growth. He said a number of workers' protests had turned chaotic, which had seriously affected foreign investors' confidence in doing business in Indonesia.
Businesspeople were also prone to extortion by politicians and political parties, as they would seek funding to help them during the incoming general and presidential elections.
"We will reconcile with labor unions and go back to the national three-party forum [LKS Tripartite] and deal with labor issues and industrial disputes through social dialogues, provided the government stays neutral," he said.
Apindo has boycotted the LKS Tripartite meetings in the past five months after many regional heads politicized labor issues to win local elections, with minimum wages raised significantly in Jakarta and surrounding areas in the past two years due to pressure from labor rallies.
Sofjan said the next president should have an economic vision similar to Apindo on Indonesian corporations, and added that he or she should also be business-friendly.