Business players have strongly deplored labor violence taking place in a factory owned by a Japanese company in Bekasi, West Java, saying the hostile actions would further damage the country’s investment climate.

The Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said on Wednesday that the violence committed by the labor union with minimal interruptions from the authorities could reflect continuing legal uncertainty in Indonesia.

According to Sofjan, in the past two months, dozens of foreign firms in Greater Jakarta reported to the association that they often faced intimidation and violent actions from labor unions that demanded their rights. Most of the companies were forced to meet their demands over fears of more violence, he said.

“This problem really disrupts growing confidence over the business climate in Indonesia, which is partly attrib...