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Jakarta Post

Businesses paralyzed

Up in arms: Thousands of workers stage a demonstration at the East Jakarta Industrial Park in Bekasi, West Java, under tight security on Thursday

Rangga D. Fadillah (The Jakarta Post)
Jakarta/Bekasi
Fri, November 1, 2013

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Businesses paralyzed Up in arms: Thousands of workers stage a demonstration at the East Jakarta Industrial Park in Bekasi, West Java, under tight security on Thursday. They demanded wage increases and an end to the outsourcing system. (JP/Wendra Ajistyatama) (JP/Wendra Ajistyatama)

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span class="inline inline-none">Up in arms: Thousands of workers stage a demonstration at the East Jakarta Industrial Park in Bekasi, West Java, under tight security on Thursday. They demanded wage increases and an end to the outsourcing system. (JP/Wendra Ajistyatama)

Activities at industrial estates in Pulogadung and Cakung in Jakarta and surrounding areas were suspended as hundreds of thousands of workers stayed away from their workplaces and staged strikes to demand better conditions.

Major manufacturers, such as home appliance maker PT Maspion in West Cikarang and carmaker PT Suzuki Indomobil in Tambun, both in Bekasi, halted production activities to allow the workers to demonstrate.

'€œToday, most workers at this company stopped working. Only a few of us worked to ensure that vital machinery kept running,'€ said Nasan Indra Wijaya, a union member who works at PT Maspion.

The strike will lead to an about 70 percent loss in production, he claimed. However, he said he was unsure whether the strike would continue until Friday.

The streets of the MM2100 industrial estate in West Cikarang were packed with thousands of workers, many of them wearing the black jackets of the Indonesian Metal Workers Federation (FSPMI).

In the Nusantara Bonded Zone (KBN) in Cakung, East Jakarta, several companies, such as PT Kaho and PT Doosan Cipta Busana Jaya, let their workers leave for the day at 10 a.m. to prevent unions from sweeping the premises for workers to force them to demonstrate.

'€œFrom 150 companies in this area, only 10 of them sent all their workers to join the rally, the rest only sent 100 to 200 representatives and maintained production activities,'€ said KBN spokesperson Solwati.

Employers at the industrial estate have yet to calculate financial losses caused by the demonstration, but they said they would lose millions of work hours if the strike lasted until Friday.

In South Tangerang, thousands of workers blocked Jl. Raya Serpong at the Bumi Serpong Damai intersection. A similar thing happened in Tangerang municipality, where at least 3,000 workers from FSPMI blocked off Jl. Gatot Subroto in Jatiuwung and made speeches.

'€œEliminate outsourcing and let workers enjoy better welfare,'€ one of the workers shouted through a microphone from the back of a pickup.

Access to the toll road at the Balaraja tollgate was also blocked by workers for hours. Vehicles from Jakarta heading to Tangerang also could not exit the toll road as the exit ramp was occupied by workers.

The demonstrators threatened to continue demonstrating until they received assurances from the Indonesian Employers Association (Apindo) about the 2014 monthly wage. They demanded a Rp 3.7 million (US$329) monthly wage for 2014. The same demand was also made by workers demonstrating
in Bogor.

The police deployed around 17,000 personnel to secure the rallies in Jakarta and surrounding areas, according to Jakarta Police spokesman Sr. Comr. Rikwanto. He also said that a clash had broken out between workers and members of Pemuda Pancasila (PP) youth organization near PT Schneider in Cikarang.

'€œMembers of PP blocked the workers'€™ way because they thought that if the workers continued with their demands, they would lose their livelihood in waste management and food stalls,'€ he revealed.

Eight people were injured and 18 motorcycles were damaged in the clash.

In response to the demonstrations, Apindo reiterated that the workers'€™ demand for a 50 percent wage increase was unrealistic and that many foreign investors would relocate to other countries if the government accepted the workers'€™ demand.

'€œThe nationwide strike has caused not only huge losses to employers but also discouraged foreign investors to maintain their investments in the country. The workers'€™ demands are not realistic,'€ said
Apindo chairman Sofjan Wanandi.

Manpower and Transmigration Minister Muhaimin Iskandar advised workers to consider their companies'€™ ability to increase wages or whether it would lead to bankruptcy and layoffs.

'€œIt doesn'€™t mean that we reject the workers'€™ demand, but we want them to understand the situation so that [the demand] does not lead to bankruptcy. Companies, the government and workers have to work hand-in-hand,'€ he said in a formal statement.

He also promised that the government would encourage companies to grow so that they could offer good salaries. He emphasized that the condition of each company was different, with some of them being financially strong and some were weak.

'€œThus, communication between companies and workers is very important so that the workers don'€™t feel cheated. Businesspeople have to ask workers to contribute to developing their businesses,'€ said Muhaimin.

Yuli Trisuwarni from Depok, Theresia Sufa from Bogor and Multa Fidrus from Tangerang contributed to the story.

Workers'€™ demands

1. 50 percent hike in minimum wage

2. Simultaneous implementation on Jan. 1, 2014, of the national healthcare program

3. Phasing out of outsourcing and contractual system

4. Endorsement of the bill on housemaids

5. Annulment of the newly endorsed law on mass organizations, thought to threaten labor unions'€™ existence

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