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Avoid Investing in West Java, Indonesian Employers Association Tells Foreign Firms
Keyko Ranti Ramadhani | January 11, 2012

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mint121
3:47am Jan 28, 2012

@DrDez

Sir, can you elaborate more ?

Do you mean the company itself have the ability to pay more, but they're afraid the worker will ask for more (mob out)?

Actually, I think their(investor) worries are reasonable. Seems it's already a norm, when demand rejected, people use any means necessary to force their demand.

Doesn't matter if their means left many people stranded with no access to Toll Road and 30KM traffic jams.

Well..seeing how the police so clueless with so called "vigilante in white", I can understand if people think to mob out at every opportunity. I mean, if the so called vigilante can get away while forcing their demand, so can we, right ?


DrDez
7:42am Jan 12, 2012

I would like to revise my first post. After talking to a group based in Singapore who are looking to invest in Tangerang yesterday, this was actually very high on the agenda. Not so much the actual wage claim but the growing tendency to 'mob out' at every opportunity.


DrDez
8:41pm Jan 11, 2012

Jokoku

I think capitalism / socialism / Islamism or what ever ism you care to think up is in one form or another 'paid slavery' and that goes for almost if not all nations on the earth.

Poor Asian Countries... Now there's a thing. For about a decade we have heard so much about the tiger and we ourselves gloat over a lower debt ratio or growth in GDP etc etc but still take huge aid and have massive poverty.. Why is it so?

Foxxcon... Tragic it seems. A Chinese Company synonymous with quality and big brands abusing its local workforce for profit. However Take a look about you Joko there are plenty of similar examples within eyeshot.


jokoku
2:50pm Jan 11, 2012

only in west java or indonesia.? ask 300person who plan to suicide in foxxcomm china. wherever you are capitalizm is a modern slavery. especialy in poor asian country.


DrDez
1:46pm Jan 11, 2012

Sir

I am in 100% agreement. I would add to your list: Education, Legal uncertainty, infrastructure, the 'failing leadership' and the culture of administrative lies** I may write a piece on that

Regarding the risk of wage rates. Its not so much the overseas investors who worry but the local employers

A few years ago we had a visit from half a dozen local businessmen who suggested in a thuggish way that our T&C was causing unrest at their plants. I gave them a tour and explained that our belief was that well cared for employees might cost you more today but over a long term the reward in return was all the things they witnessed. Reduced absenteeism, staff turnover, better performance, healthier employees etc etc. The response was they could not afford to do it and we were driving wage rates up locally. Their 7 series BMW's and Mercs and one Landcruiser looked pretty nice next to my Kijang. Their Armani suits looked great v my Group Polo Shirt.. etc -


A massive wildcat strike involving thousands of workers in Bekasi on outskirts of Jakarta on Wednesday will disrupt the investment climate and business in West Java, the Indonesian Employers Association says.

Sofjan Wanandi, chairman of the assocation, known as Apindo, said it was taking legal action to block moves by the Bekasi administration to increase the minimum wage by as much as 30 percent.

The strike outside the Industri Kawasan MM2100 industrial estate has blocked traffic on the Cibitung Toll Road linking Jakarta and the satellite city.

The estate, which houses a number of foreign firms housing thousands of workers, is closed.

Sofjan said investors would think twice about investing in West Java, “particularly Bekasi.”

“I recommend that they invest in Central Java or East Java,” he said.

He said the wage increase, already approved by the governor, was good news for workers but spelled potential disaster for employers.

“All companies in the industrial area object to the minimum wage increase because it is considered to be a steep increase,” he said.