nasional.tempo.co
Cui Bono... The people demoing are pawns the real power brokers, ie. the remnants of the Suharto family who are looking for an opening to stage a coup d'etat. In the grand scheme of things, the Omnibus Law is a fairly moderate deregulatory framework that brings in much-needed foreign investment to prevent the economy from generally falling off a cliff. I am thoroughly convinced that there is an invisible hand spurring the angry youth to action.Pretty much every large city has some sort of anti Omnibus demo right now.
Interestingly, several local governments have also written to the central gov't to cancel the law. The Omnibus law curtails many of the requirements for approval from local governments, traditionally a very lucrative deal for them.
Cui Bono... The people demoing are pawns the real power brokers, ie. the remnants of the Suharto family who are looking for an opening to stage a coup d'etat. In the grand scheme of things, the Omnibus Law is a fairly moderate deregulatory framework that brings in much-needed foreign investment to prevent the economy from generally falling off a cliff. I am thoroughly convinced that there is an invisible hand spurring the angry youth to action.
To the extent that workers are getting "screwed over" by the new law, I think it will result in a far greater number of workers keeping their jobs than would be the case without the new law. This law is necessary to keep Indonesia competitive with its regional rivals. Large manufacturers looking to move production facilities are going to have a "buyer's market" for the foreseeable future, and Indonesia desperately needed to improve its competitive position.Rather than blaming Suharto's ghost, I think there are definitely some genuine concerns that are being demonstrated against.
1. The new law was basically pushed through without consultation, in fact, apparently without spell checking. Parliament worked ahead of schedule, even working late into the night. Always be wary when DPR is working late.
2. The new law does screw over workers something fierce.
3. With the opposition (Gerindra/Prabowo) joining the government, people (correctly) feel that they no longer have representation. Hence the only outlet they have is demonstration.
On a personal level, as someone who hasn't drawn a paycheck in years, this law will probably benefit me quite a bit, definitely in the short term. In fact, in some areas I don't think it goes far enough (foreigners are allowed to buy apartments...yipee).
However, I completely understand the anger felt by many.
From yesterday, or are they back again today?Have you seen the riots and fire outside Plaza Indonesia?
this is from the guardian:
According to a draft version of the bill, mandatory paid leave for childbirth, weddings, baptism and bereavement will be scrapped, as will menstrual leave for women.
www.malaymail.com
Maybe my Indonesian isn't that good, but I read the labor law part of the omnibus and it doesn't seem like the workers are getting screwed? What is it that they're protesting against, really?
World wide the push has been to create part time employment rather than permanent employment. The social cost is seriously corrosive. Apart from the loss of permanent employment benefits, part time employment causes a great sense of anxiety for families with no sense of future security. It also makes it very hard to get bank loans for mortgages or whatever. The work force is left with a feeling of being a disposal commodity that can be dispensed with whenever it suits employers. All in all a very divisive strategy and though perhaps with the best intentions to stimulate investment and provide more employment, pushing this through with the omnibus legislation was a decision for which government will pay a price.You have to read it compared side by side with the old law. One of the worst changes is that previously a temporary contract worker has to be hired into a permanent worker after 1 year. Now this protection is removed, and punted to a lower level PP, which has not been written. Note that a temporary worker has fewer rights, including no right to a severance pay. Also most banks will not enter into a loan agreement (mortgage, etc) with a temporary worker.
Other changes include allowing full outsourcing, reducing severance pay by half for certain conditions, removal of regional and sectoral minimum wages, removing minimum wage for small and micro enterprises, increase of maximum overtime hours, etc.
You have to read it compared side by side with the old law. One of the worst changes is that previously a temporary contract worker has to be hired into a permanent worker after 1 year. Now this protection is removed, and punted to a lower level PP, which has not been written. Note that a temporary worker has fewer rights, including no right to a severance pay. Also most banks will not enter into a loan agreement (mortgage, etc) with a temporary worker.
Other changes include allowing full outsourcing, reducing severance pay by half for certain conditions, removal of regional and sectoral minimum wages, removing minimum wage for small and micro enterprises, increase of maximum overtime hours, etc.
Maybe my Indonesian isn't that good, but I read the labor law part of the omnibus and it doesn't seem like the workers are getting screwed? What is it that they're protesting against, really?
Note that a temporary worker has fewer rights, including no right to a severance pay. Also most banks will not enter into a loan agreement (mortgage, etc) with a temporary worker.
Just want to correct this one, it's not 1 year, it's 3 years maximum including one renewal (1+2 or 2+1).
Nobody would be hiring temporary workers if firing permanent workers is made as easy as hiring them.
When I first arrived in Indonesia, I remember severance pay was 3 months maximum. The 2003 Labor Law destroyed the investment climate with one of the highest severance payment in the world. A few months ago, I heard rumors that it will be revised to 6 months which is reasonable. But now we know it's not true.