"For sure, a wage increase will not solve labors` problems, so the government should play its role," Sofyan Wanandi said.
Jakarta (ANTARA News) - The Indonesian Employers Association (Apindo) Chairman, Sofyan Wanandi, said a labor wage increase would not solve labors` problems, especially relating to their standard of living.

"For sure, a wage increase will not solve labors` problems, so the government should play its role," Sofyan said at a press gathering here on Tuesday.

The government`s assistance is badly needed to solve the problem of labors` standard of living, for instance by providing low-cost housing, affordable health care, and less expensive transportation, according to Sofyan.

"In addition, the government should control inflation. Yet entrepreneurs have raised labors` wages and guaranteed their insurance," Sofyan disclosed.

Sofyan said the planned demonstration by unions on October 31 and November 1 will also lead to a decline in the investment climate in Indonesia or even cause investors to leave the country.

"Of course, the unions have a right to demonstrate, but what is wrong is that the workers who previously didn`t join the demonstration were forced to participate in the street rally" Sofyan noted.

Sofyan added that in 2012 many investors left Indonesia due to conditions which were not conducive, and caused 200 thousands workers to be discharged from their jobs.

In the meantime, thousands of workers rallied in front of Jakarta`s City Hall on Tuesday to demand a pay increase.

Workers began arriving at 11am and filled the road in front of City Hall.

Despite heavy rains, they continued the demonstration, and singing labor fight songs while flying union flags.

"We came here to meet Jokowi and Ahok (the Jakarta governor and deputy governor). We are demanding a raise in the provincial minimum wage (UMP) and inclusion of more items in the Decent Livelihood Components (KHL)," said Winarso, the chairman of the regional executive board of the Federation of Metal Workers Unions (FSPMI).

Winarso noted that the demonstration was only a rehearsal before the national strike planned for October 31 to November 1.

"Later, during the national strike, workers will stop operating all engines in their companies. After the national strike, we hope there will be negotiations with the government for our demands," he said.

He also said workers demanded an increase in the UMP by 50 percent from the current Rp2.2 million to Rp3.7 million, the end of outsourcing and a rise in the KHL from Rp1.9 million for 60 items to Rp2.7 million for 84 items.(*)

Editor: Heru Purwanto
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