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Batam anticipates rising investor tensions following wage hike, labor protests
The Batam Free Trade Zone Management Agency (BP FTZ) says it would anticipate possible rising tensions on investors in the city following the announcement of the 2015 monthly minimum wage (UMK) considered too heavy for industrial players and the attitude of Batam workers who tend to be violent in conveying their aspirations
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he Batam Free Trade Zone Management Agency (BP FTZ) says it would anticipate possible rising tensions on investors in the city following the announcement of the 2015 monthly minimum wage (UMK) considered too heavy for industrial players and the attitude of Batam workers who tend to be violent in conveying their aspirations.
BPK FTZ head Mustofa Widjaja said the agency had taken a number of steps to avoid panic among investors caused by the recent minimum wage hike and violent labor protests.
'Informally, we have invited labor leaders to discuss their aspirations so that the investment situation in Batam can remain conducive. We [BP FTZ] were not involved in the deliberation process of the UMK 2015; however, it is still in our interest to keep the situation in Batam conducive to foreign investment,' said Mustofa.
He said Batam workers staged protest rallies that tended to be more violent compared to previous rallies on Wednesday. In the protests, they rejected the UMK 2015 approved by Riau governor Muhammad Said.
'The current administration is not like the New Order regime which tended to be repressive against any criticisms. All parties, including labor, can now convey their aspirations such as on wage hike demand freely. However we hope that they can do it in an orderly fashion,' said Mustofa.
The chairman of the Batam-chapter of the Indonesian Employers Association (Apindo), O.K.Simatupang, said the announcement of the UMK 2015 that was too high along with the labor protests would lead foreign investors to flee from Batam.
'The recent announcement of the minimum wage hike in Batam was influenced by political pressures. The UMK was composed by the government without concerning existing regulations. We also urge the police to take tougher actions in responding to labor protests that have tended toward anarchy,' said Simatupang.
According to Apindo data, industrial sectors in Batam suffered loses of US$10 million per day due to labor protests that involved violent acts such as sweeping workplaces for people that did not join the protests, road blockades and public disruptions.
The police stepped up security in a number of vital places when Batam workers staged a rally to reject the UMK 2015 of Rp 2,685,302 per month on Wednesday. (ebf)(+++)
