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Government sheds light on labor market reforms as unions take to streets
Coordinating Economic Minister Airlangga Hartato clarified on Wednesday that contrary to the protests, the existing minimum wage and severance pay system would remain. In fact, the government would be implementing more protection measures for laid-off workers, he added.
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Labor with the People Movement (Gebrak) that consist of labor and student alliances march toward the House of Representatives Building in protest of the omnibus bill on job creation in Jakarta on Monday, Jan. 13, 2019.
(JP/Moch. Fiqih Prawira)
T
he government maintains that its labor market reforms, which will be covered in the upcoming omnibus bill on job creation, will continue to protect labor as unions and students take to the streets against the proposed new legislation.
Coordinating Economic Minister Airlangga Hartato clarified on Wednesday that contrary to the protests, the existing minimum wage and severance pay system would remain. In fact, the government would be implementing more protection measures for laid-off workers, he added.
“There is a difference in perception on information” related to the omnibus bill on job creation between the government and labor groups, Airlangga told reporters at the State Palace. “There have been several issues that have been discussed with confederations.”
Airlangga claimed to have had dialogue sessions with seven labor confederations and 28 other unions and “in principle almost all confederations accept this omnibus bill”. The government will finalize the omnibus bill on job creation this week, expecting it to be included in the House of Representatives’ priority bill list (Prolegnas) this month, he added.
If passed, the bill will amend more than 1,000 articles in prevailing laws, including the Labor Law, which have been blamed for hampering investment in the country. The bill is expected to ease doing business in the country and attract more foreign investment and in turn create jobs for about 6.82 million people currently unemployed, according to Statistics Indonesia data.
On Monday, hundreds of people representing seven labor unions and organizations, including student groups, under the auspices of the Labor with the People Movement (Gebrak) expressed their opposition to the omnibus bill in front of the House building in Jakarta.
Read also: Workers, students continue to protest omnibus bill
