Denny's World & Thought

Wednesday, May 03, 2006

It is frustrating to see the government insisting to amend the current labour law. Under the new proposal, an employee with more than 1 year of service can be sacked by the employer without any severance pay.

It seems that the government has a hidden agenda behind this. The huge demonstration by labour union on 1 May, which was praised by the government for the peaceful and well behaviour of all the demonstrator, only last for less than 24 hours and the Vice President's comments has stir up another protest and marching in front of the House of Parliament demanding to reject the bill.

The government seems to pro the business men rather than the people/labour. Maybe this is because we have too many senators (including Mr. Vice President) who are also having their own businesses and they have vested interest to see the cost of labour can be squeezed to the minimum. Perhaps the government also trying to make Indonesia more attractive to the international investors by sacrifying the welfare of Indonesian labour and to promote cheap labour to keep the labour intensive jobs still in this country. The government keep forgetting the cost of a product not depends only on labour cost. There are also many component that made up the final cost. And in this country, the inefficiency cost is among the highest in the world due to corruption that occur almost in all level of business chain.

If the government focus on getting the inefficiency sorted out, our product and services will be much more competitive and therefore we do not have to bow to investors who want to enjoy master-slave relationship instead of mutual win-win relationship.

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