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Local elections frighten investors in Batam

Foreign investors in Batam, Riau Islands, have expressed anxiety ahead of local leadership elections scheduled for Dec

Fadli (The Jakarta Post)
Batam
Fri, August 14, 2015 Published on Aug. 14, 2015 Published on 2015-08-14T16:30:54+07:00

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F

oreign investors in Batam, Riau Islands, have expressed anxiety ahead of local leadership elections scheduled for Dec. 9, fearing that politicians will highlight wage issues during the elections.

PT Batamindo Investment Cakrawala general manager Mook Sooi Wah told The Jakarta Post on Wednesday that the elections, which will coincide with a deliberation on the 2016 City Minimum Wage (UMK), could cause investors extreme worry should workers turn to anarchy in fighting for their wishes.

'€œThis year, three companies have officially stopped operating in the Batamindo Industrial Zone due to manpower issues,'€ the Singaporean Mook said.

He said that the three companies were Siemens, which ended operations after their workers blockaded the factory for nearly two months, PT Nidec and PT Zink.

'€œWorkers are allowed to fight for their rights, but they should respect the presence of investors operating here. If they block the factories, or seal their entrances when fighting for their rights, this could taint the image of Batam. We hope the government of Indonesia is serious in handling the issue,'€ said Mook.

According to Mook, the elections and UMK discussions, which will be held concurrently, have caused concern among investors, especially foreign investors who fear that anarchic labor rallies could cause them losses.

'€œWe hope law enforcement will take action against workers who resort to anarchy. Our tenants, which number around 60 and a majority of whom are foreign investors, have paid serious attention to the matter,'€ said Mook.

During a visit in Batam in June, President Joko '€œJokowi'€ Widodo ordered the National Intelligence Agency (BIN) to investigate the alleged foreign involvement in labor rallies in Batam, Riau Islands, that has led to investors leaving the Batam Industrial Zone.

Jokowi'€™s remarks were in response to a report by the head of the Riau Islands chapter of the Indonesian Employers Association (Apindo) Cahaya regarding indications of foreign involvement in recent labor protests in Batam.

Allegations of foreign support for workers have been made by the government since a massive and chaotic rally in 2011 involving at least 10,000 workers on the island. At least six were injured, including one person who was shot. Three cars were severely damaged during the rally. The rally was staged to demand an increase in the minimum wage.

Earlier, the Batam chapter of the Industrial Zone Association (HKI) planned to invite Coordinating Minister for the Economic Affairs Sofyan Djalil to meet with National Police chief Gen. Badrodin Haiti, Investment Coordinating Board (BKPM) head Franky Sibarani and Manpower Minister Muhammad Hanif Dhakiri to discuss labor issues in Batam on Aug. 18. However, the meeting had to be called off due to the Cabinet reshuffle on Wednesday.

Sofyan, who was replaced by Darmin Nasution, was installed as national development minister.

Batam Free Trade Zone Authority spokesman Andiantono Purnomo said his office sensed the presence of political movements that would likely take advantage of UMK deliberations in an effort to draw workers'€™ sympathy.

'€œAs a preemptive step against anarchic labor rallies in the framework of setting the UMK, we have taken persuasive measures by holding routine meetings with labor leaders in Batam. We'€™d rather sit together and discuss wage issues with a cool head,'€ said Andiantono.

Separately, Indonesia Workers Union (SPSI) leader Setia Tarigan said that his union would ensure that the UMK discussions would be free of political motives.

'€œThere'€™s just too much fear. We acknowledge that a number of labor leaders in Batam have joined the campaign teams of mayoral and gubernatorial candidates in Riau Islands, but I guarantee there will be politicization,'€ said Tarigan on Thursday.

He claimed that the involvement of labor leaders in campaign teams was not against the ethics or code governing labor unions.

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