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Japanese investors complain about sudden wage hike, violent protests in Batam

The Batam Free Trade Zone Management Agency (BP FTZ) has said that Japanese investors have complained about a sudden wage increase and violent workers' protests in the city

Fadli (The Jakarta Post)
Batam
Wed, September 4, 2013

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Japanese investors complain about sudden wage hike, violent protests in Batam

The Batam Free Trade Zone Management Agency (BP FTZ) has said that Japanese investors have complained about a sudden wage increase and violent workers' protests in the city.

 BP FTZ spokesman and One-Roof Integrated Service (PTSP) director Dwi Djoko Wiwoho told The Jakarta Post on Wednesday that the complaints were expressed during a meeting at the Japanese Consulate on Aug. 26.

'€œThey regret the government'€™s decision to increase wages annually and that it was made so suddenly,'€ Djoko said.

 He said that his meeting with Japanese consular Yumi Hamada focused on dealing with the problem of the three managers of Japanese electronic device manufacturer PT Sun Creation Indonesia (SCI) who fled the country in July, leaving 732 workers in limbo.

 '€œThe Consular office gave the BP FTZ the go-ahead to visit the SCI central office in Japan, and we will fly to Japan on Thursday to solve the problem. After discussing the SCI, Yumi told us about the complaints made by Japanese investors in Batam,'€ Djoko said.

 According to Djoko, Japan was the third biggest investor in Batam after Singapore and Malaysia, with 65 companies investing around US$132 million.

 '€œWe have to take it as a warning for all of us, and we should respond to their complaints wisely. We hope that workers control themselves in voicing their aspirations,'€ Djoko said.

 He added that besides SCI, PT Shin-Etsu Magnetics Indonesia also closed its plant in the Batamindo Industrial Park on Aug. 23 and laid off 500 workers. (hrl/dic)

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