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ather than ensuring that the police take firm action against violent or prolonged labor protests, top government officials are content to issue vague promises to calm angry executives, an industry lobby has said.

The Indonesian Employers Association (Apindo) has warned the government that its members will temporarily close their doors if they do not receive assurances from the government that it would enforce the law and uphold their rights to a legal certainty, which Apindo says has been put to the test by prolonged and often chaotic worker protests.

One top official has acknowledged Apindo’s concerns. Speaking to reporters on Tuesday, Coordinating Economic Minister Hatta Rajasa said that Indonesia was facing a serious task to prove to the international community that it was competent enough to simultaneously protect the rights of workers and investors.

Hatta, however, offered no concrete solutions, save encouraging both sides to meet to discuss contentious issues such as outsourcing and the minimum wage so as to find common ground.

The minister has not asked the police to crack down on anarchic labor actions perpetrated by workers that have forced several companies to temporarily halt operations or endure financial losses due to the protests.

The police’s reluctance to use force to quell worker demonstrations and labor actions has been widely criticized by executives.

“This is a test for the country where we have to prove to the world whether we are a destination investment country. We need to remember that if people think Indonesia is not conducive for investment, we are going to lose,” Hatta said in Jakarta on Tuesday.

Contacted separately, Apindo chairman Sofjan Wanandi said that about 100 labor-intensive local and foreign-owned companies are planning to lock out workers for the three days.

The firms employ about 100,000 people.

Most of the companies are located in Bekasi, Karawang, and Purwakarta, all in West Java.  

“This is a very serious case. [Wednesday], we are going to meet with representatives from those companies to discuss the details of the shutdown and its timeframe,” Sofjan told The Jakarta Post.  

He said the firms needed to temporarily close as they would no longer tolerate violent demonstrators who have damaged their facilities.

He claimed that some foreign executives were uneasy about the tenor of the labor actions, including the incident where workers barred people from leaving a factory in Bekasi during a demonstration that was held several weeks ago.

“The police seems to have neglected the case because they let this happen. We are now facing uncertainty in security and labor policy. The uncertainty of doing business is very high,” Sofjan continued.

The chairman of Indonesian Textile Association (API), Ade Sudrajat, agreed. “We cannot count [the losses] anymore because the impact has been so huge on our business. Local players cannot expand their business while new foreign businesspeople decide not to invest in Indonesia,” Ade told the Post.

The chairman of Indonesian Footwear Association (Aprisindo), Eddy Widjanarko, said that his members have had to suspend operations at more than 200 factories.

“We plan to communicate this issue with the government, but I am not that sure they will be able to help us. We hope that Apindo can find a solution immediately,” Eddy said.

 Meanwhile, Investment Coordinating Board (BKPM) chairman M. Chatib Basri lashed out at the criticism of local businesses that threatened to close their doors in response to protests and labor actions.

“The solution is not threatening against each other. The problem won’t be solved that way,” he said on Tuesday. “If they [investors] close their business, [they] will get no income. What will they do?”

Chatib also dismissed reports that several businesses in the country were pondering relocating overseas.

The BKPM, according to Chatib, has not received “a single proposal from any business wanting to relocate from Indonesia”. (sat)