•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

Indonesia’s improved image as an investment destination and as a good place to do business has been one of the key factors behind its robust economic growth and the investment upgrade it received last month from Fitch Ratings. The country is now increasingly viewed as a major economy and market .

Earlier this month, Ford Motor said it was considering establishing a major automobile manufacturing presence in the country. Local businesses are also bullish about future prospects and are expanding their manufacturing plants.

This positive momentum, however, could be threatened by growing worker agitation for sharp increases in wages. While it is the right of every Indonesian worker to be paid a fair wage, high demands hurt businesses as well as the workers themselves.

What is of concern is growing strike action in the country. Pictures of thousands of workers striking in Bekasi to demand that the Indonesian Employers Association (Apindo) withdraw a lawsuit filed against a local government decree increasing the minimum wage by 30 percent is a case in point.

The strike not only damages the country’s image but hurts workers as investors will stay away, taking important jobs to other countries. Strikes are not the best way to achieve what the workers want — a fair wage that allows them a decent living standard.

We must find better mechanisms to resolve such issues before they blow up. Employers, workers and the government must work together, with the government taking the lead in determining fair wage levels after consulting both sides.

Threats by the Indonesian Metal Workers Union (FSPMI) to paralyze the industrial zone in Bekasi are unnecessary and send out the wrong message. If businesses suffer heavy losses, they will close, leaving workers jobless with no income.

We welcome Apindo’s readiness to meet with workers and their union representatives to try to settle the dispute. The Bekasi local government has a critical role in ensuring that both sides come to a reasonable settlement. We urge the union to be open to compromise and we urge employers to share their earnings with workers by raising wages to ensure they are at a fair level.