Labor leaders should think out of the box and not lose sight of the big picture: the vital need to stimulate private investment and businesses, because it is the private sector that generates jobs, not the government.

Jobs provide wages, which in turn generates consumer buying power. This is the process chain that propels the wheels of the economy.

Trade unions should instead take their fight to the Constitutional Court by filing a judicial review request if they still cannot accept the law’s provisions on worker rights and protection, despite the fact that most analysts have agreed that the new labor provisions are fair compared to other labor rules in ASEAN states.

It is true that stoking greater demand for labor through growing jobs, the main objective of the law, is as important as establishing the rules on worker protection and welfare. But overly protective regulations could choke growth in the formal sector, which is badly needed to absorb the huge number of job seekers.

Continuing with the mass demonstrations would not only heighten the risk of COVID-19 infection and street violence, but also undermine productive activities and scare off new potential investors in labor-intensive industries.

The intermittent bouts of labor unrest would also further hamper the economy that is already trapped in a deep recession. If trade unions continue to behave and act in a radical manner, potential investors will shun Indonesia.

Popular

Calls for reform grow ahead of Prabowo’s state address

Indonesia at 81: Whose sovereignty are we celebrating?

Indonesia’s rare earth push faces low-content, costly extraction hurdles