T

he Batam chapter of the Indonesian Employers Association (Apindo) has claimed that the industrial sector in Batam, Riau Islands, will suffer losses of US$10 million per day during labor rallies, which yesterday saw protesters blocking roads and conducting sweeps of workers.

On Wednesday, a number of critical sites in Batam were secured by the police in response to a workers'€™ rally said to be the largest in the city this month.

'€œWe estimate a loss of around $10 million resulting from production stoppages in the industrial sector and other consequences of today'€™s rally. They [workers] conducted sweeps on workers and blocked roads [...],'€ Batam chapter Apindo head Oka Simatupang told The Jakarta Post on Wednesday.

Simatupang expressed concern that the violent rallies would perturb investors.

'€œI believe that in the next few months, we will see some investors relocating from Batam because, as we'€™ve seen today, the situation is no longer conducive [to business],'€ Simatupang said.

Riau Islands Governor Muhammad Sani set the 2015 minimum wage (UMK) in Batam at Rp 2,685,302 (about $224), Rp 21,000 higher than the sum recommended by Batam Mayor Ahmad Dahlan. The 2015 UMK is an increase of Rp 285,000 from the 2014 figure.

Apindo has rejected the 2015 UMK set by the governor and plans to file a lawsuit at the Tanjung Pinang State Administrative Court (PTUN).

Riau Islands Manpower Agency head Tagor Napitupulu earlier said that the Batam UMK set by the governor was based on consultation with the provincial remuneration council regarding the increase in fuel prices.

'€œThe Batam UMK also takes into account the recommendation of the Batam mayor. We hope every party will accept the decision and there will be no more controversy,'€ said Tagor, who is also the head of the Riau Islands Remuneration Council.

On Wednesday morning, a number of thoroughfares connecting industrial zones were jammed with labor convoys coming from different directions and heading to the intersection near the Batamindo and Panbil industrial zones. They also headed to the Batam municipal office.

A group of people in work uniforms and members of labor unions conducted sweeps on factories and urged workers to join the rally. Those who refused were intimidated and even physically assaulted.

A Citilink passenger traveling from Batam to Padang, Zuhri, said he went to Batam'€™s Hang Nadim International Airport hours early to avoid traffic jams.

'€œThe roads have been congested since this morning. I was afraid I'€™d get to the airport late and be unable to find an alternative route,'€ said Zuhri, who in the event arrived at the airport earlier than scheduled.

Hundreds of police, fire department and airport security personnel tightly secured roads leading to the airport to anticipate the arrival of protesters.

'€œWe demand the 2015 UMK be set at Rp 3.3 million. It is non-negotiable. We will fight until our demand is met,'€ Indonesian Metal Workers Union (FSPMI) Batam chapter head Suprapto said during the rally.

The protesters dispersed in the face of torrential rain later in the afternoon.