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#51022 - 07 May 07 12:21 JP/Policies 'unfriendly to foreign investors'
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Policies 'unfriendly to foreign investors'

Fadli, The Jakarta Post, Batam

At least 2,670 workers at foreign investment company PT Nasional Garment Bintan (NGB) in Riau Islands province face layoffs after the firm decide to close, saying local policies were not foreign-investor friendly.

The workers will be laid off in stages over the next two months, management told the Bintan regency administration, Bintan Legislative Council and Bintan Industrial Estate (BIE) on Friday.

BIE managing director Jamin Hidayat told The Jakarta Post in Batam that PT NGB, which is owned by Hong Kong investors, was just one of six foreign companies that planned to close up shop in Bintan.

He said PT NGB's shut-down was caused by various factors, including government policies that had not been conducive to investment, he said.

Jamin said that unpredictable wage increases had been one problem, as was the 40-hour workweek and payment of over-time to workers.

He said that the average workweek was more than 48 hours in most Asian countries and that the policy was pro-worker and anti-employer.

"The tax system and the scale of hikes in fuel prices for industry are also difficult to calculate. The business friendly policies promised by the government for the special economic zones like in Bintan have not been realized," Jamin said.

Moreover, PT NGB faced fierce competition on the global market for similar products, especially in the American market, he said.

"The investors said that the global competition can been handled if the investment situation supports them," Jamin said, explaining that the layoffs would be settled amicably with the workers. Negotiations were being held and PT NGB promised to meet all the workers' rights, he said.

Jamin further explained that PT NGB constituted the largest tenant at the industrial estate. The company started its garment business on the island in 1995 by leasing 10 factory buildings in the 325-hectare area.

"We've done our utmost effort, giving discounts and other facilities, to ensure investors to stay in Indonesia, but as it deals with a government policy, we cannot do more than that. The stoppage of operation (by PT NGB) will have a great impact on our incomes," he said, adding that the closure had cut revenue from income taxes from thousands of workers as well.

Jamin said it was likely that the other five foreign investment companies would also close.

"Representatives of the five foreign investment companies have informed us their plans to stop operation. We therefore urge the government to take the initiative to settle the problem as soon as possible," he said.

PT NGB's closure will cut the number of workers employed by 26 foreign investment companies on Bintan island from 15,000 to 11,000, Jamin said. The companies deal mainly with the production of garments and electronic devices.

Meanwhile, a Bintan Legislative Council member, Timbul Sianturi, said the problem lay with the Indonesian government and not the local administration.

Timbul urged the government to issue a legal umbrella for the special economic zones in Batam, Bintan and Karimun.

"The investors are waiting for such a policy from the government for the sake of the future of their operations. The President should not hesitate here because the longer he takes, the bigger losses the government will incur," he added.
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#51040 - 07 May 07 12:54 Re: JP/Policies 'unfriendly to foreign investors' [Re: KuKuKaChu]
chewwyUK Offline
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No doubt there will be more and more stories like this one unless something is done very soon
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#51047 - 07 May 07 13:36 Re: JP/Policies 'unfriendly to foreign investors' [Re: chewwyUK]
doremi Offline
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Registered: 17 Jan 07
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I am not sure what the "best" solution; on one hand I believe that the government should do something to encourage foreign investors to stay and on the other hand, I thing these investors are "playing games" on who/what countries can give the most concessions.

I also think that workers have the rights to comparable wages and decent working conditions (48 hours work week? no).

Can corporations behave socially responsible and still be profitable? absolutely! may be we consumers will have to bear some costs.

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#51048 - 07 May 07 13:56 Re: JP/Policies 'unfriendly to foreign investors' [Re: chewwyUK]
riccardo Offline
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Registered: 12 Oct 05
Posts: 2195
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All the more disturbing because Bintan was supposed to have "extra" incentives as a special "investor-friendly" zone...

AND... for sure they won't be taking their business to France, the work week is below 35 hours and they're trying to lower it further.
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#51062 - 07 May 07 18:28 Re: JP/Policies 'unfriendly to foreign investors' [Re: chewwyUK]
Capt. Mainwaring Offline
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Quoting: chewwyUK
No doubt there will be more and more stories like this one unless something is done very soon


But sometimes we don't seem to want to ...

I listened to something that made me very cross on Sunday morning , a guy saying that Indonesians were lazy - as I mentioned to him , he paid 600,000 a month for a semi-skilled technician for 6.5 days a week , did he expect a fricking dynamo ?
I tend to believe in treating people well and giving them the chance to "fill the boots" , and for the mostpart it works .
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I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
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#51087 - 08 May 07 08:33 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
chewwyUK Offline
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Registered: 14 Sep 06
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Loc: Jakarta
agreed captain ... I dont understand people who can complain about the work ethic of somebody they are paying low wages to. I have some really good people in my company who work well.

However the problem is that the government has over protected the workers of Indonesia. Companies are flocking to India, China and Vietnam because the manpower laws are fair to both employer and employee. The big manufacturing companies (the big employers) need a fluid work force and that is something that is not possible at the moment. I cant think of another country where you have to pay out the entire length of a contract for temp staff if you terminate the contract early!
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#51089 - 08 May 07 08:52 Re: JP/Policies 'unfriendly to foreign investors' [Re: chewwyUK]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
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Convoluted circles , one thing leads to the next .

I laugh because Malaysia treats TKI like rubbish , because in turn Indonesia treats TKA and/or husbands in exactly the same way - however the cycle must be broken at some point - Indonesia is losing out such a great deal .
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I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#51094 - 08 May 07 11:06 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
naga Offline
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Registered: 18 Jan 07
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"I listened to something that made me very cross on Sunday morning , a guy saying that Indonesians were lazy - as I mentioned to him , he paid 600,000 a month for a semi-skilled technician for 6.5 days a week , did he expect a fricking dynamo ? "

sorry, but it's true, Indonesians are generally nice people and all, but they are soooo lazy...and i don't disagree with the above assessment, it's mainly higher up the ladder you go, the lazier and more incompetent they are,..sorry, but that's the truth...
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#51096 - 08 May 07 11:42 Re: JP/Policies 'unfriendly to foreign investors' [Re: naga]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
Posts: 3225
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Well Naga , I'd like to see your production rate for the princely sum of $60 a month - your attitude is what perpetuates this "laziness" .

I'd like to see how long you can work in unpleasant dangerous conditions .

You have to change to whole thinking - "kesadaran" -

It is only a question of respect .....
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#51123 - 08 May 07 16:17 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
naga Offline
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Registered: 18 Jan 07
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"Well Naga , I'd like to see your production rate for the princely sum of $60 a month - your attitude is what perpetuates this "laziness" ."

It's all relative to your standard of living, i would have been around the same comparitively at certain stages of my life, particularly when i was starting out, like lot's of others, and there is no compromise, you have to produce if you want to survive, i see guys on work sites here all the time (like my bldg) and lot's of them do F.A....

You don't know anything about my attitude, i actually contribute to a lot of Indonesian's development..

"I'd like to see how long you can work in unpleasant dangerous conditions ."

been there, done it ...and harder than you ever have...


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#51128 - 08 May 07 19:26 Re: JP/Policies 'unfriendly to foreign investors' [Re: naga]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: naga
"Well Naga , I'd like to see your production rate for the princely sum of $60 a month - your attitude is what perpetuates this "laziness" ."

It's all relative to your standard of living, i would have been around the same comparitively at certain stages of my life, particularly when i was starting out, like lot's of others, and there is no compromise, you have to produce if you want to survive, i see guys on work sites here all the time (like my bldg) and lot's of them do F.A....

You don't know anything about my attitude, i actually contribute to a lot of Indonesian's development..

"I'd like to see how long you can work in unpleasant dangerous conditions ."

been there, done it ...and harder than you ever have...




Again , I don't intend to get into a pissing competition with you - but don't assume that you have a monopoly of having led a hard life . Please , if you qoute , do so completely - If you reckon that $60 is a fair days money to bring up a wife and one child in a modest manner , may I suggest you extract your head out of your arse - people do FA the whole world over , the disgustion is about how much they get paid for doing so - the world is fricking lazy , tell me something new .
$60 bucks a month ? I think not Naga , relative or otherwise .
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#51176 - 09 May 07 12:43 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
naga Offline
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Registered: 18 Jan 07
Posts: 260
Loc: undisclosed location
"Again , I don't intend to get into a pissing competition with you "

well, qute obviously you are...

"Please , if you qoute , do so completely - If you reckon that $60 is a fair days money to bring up a wife and one child in a modest manner , may I suggest you extract your head out of your arse "

Where exactly did i suggest that?

Perhaps YOU should quote correctly, although that may be a difficult exercise with your 'head up your arse'..

"- people do FA the whole world over , the disgustion is about how much they get paid for doing so - the world is fricking lazy , tell me something new .
$60 bucks a month ? I think not Naga , relative or otherwise . "


Relativity is the key element, if you can comprehend that concept....

People have to survive on the equivalant the whole world over, 60 bucks a month in Indo is roughly equivalent to a 1000 bucks a month in Sydney, try living on that, people live on less but they do, get over yourself....
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#51181 - 09 May 07 12:57 Re: JP/Policies 'unfriendly to foreign investors' [Re: naga]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
Posts: 3225
Loc: here
100 years ago you would have wandered around with a pith helmet and a fucking safari suit complaining at the punkawalla - up the empire eh Naga ?

If you want to get people motivated then you need to encourage them - try it .
And $60 bucks a month does not compute to anything in the western world .
Australia no more has true poverty as does the UK , no one in the UK is hungry , they just cannot always go to the pub every night , or perhaps cut down to 40 a day .

What a load of tosh , 20,000 Rp a day , and what , live in a hole in the ground ?



_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#51193 - 09 May 07 14:27 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
naga Offline
Member++

Registered: 18 Jan 07
Posts: 260
Loc: undisclosed location
"100 years ago you would have wandered around with a pith helmet and a fucking safari suit complaining at the punkawalla - up the empire eh Naga ?"

Horseshit, a hundred years ago i would have been cavorting around the jungle with a bible and 'converting' the locals, i despise colonialism, it's the perfect excuse to hate the poms..

"And $60 bucks a month does not compute to anything in the western world ."

i thought you only pretended to be an idiot until you said that...

"Australia no more has true poverty as does the UK , no one in the UK is hungry , they just cannot always go to the pub every night , or perhaps cut down to 40 a day"

uhh, the Aboriginals in central Australia?

have you seen their plight?

There are people with virtually zero expendable income in both countries, not that i give a shit about lazy pommy bastards..

you still don't get it, i truly thought you were only pretending, no wonder you're down and out in Indo...
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#51199 - 09 May 07 16:46 Re: JP/Policies 'unfriendly to foreign investors' [Re: Capt. Mainwaring]
kenyeung Offline
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Registered: 16 Apr 07
Posts: 2374
Loc: Indonesia
Quoting: Capt. Mainwaring
and what, live in a hole in the ground?


You were lucky to have a hole in the ground. Sutiyoso evicted us from our hole in ground; we had to live in a canal.

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#51207 - 09 May 07 17:43 Re: JP/Policies 'unfriendly to foreign investors' [Re: kenyeung]
Capt. Mainwaring Offline
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Registered: 16 Aug 06
Posts: 3225
Loc: here
So I see Kenny . Obviously relocated to the mud at the bottom of the canal ?
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#51208 - 09 May 07 17:50 Re: JP/Policies 'unfriendly to foreign investors' [Re: naga]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: naga
"100 years ago you would have wandered around with a pith helmet and a fucking safari suit complaining at the punkawalla - up the empire eh Naga ?"

Horseshit, a hundred years ago i would have been cavorting around the jungle with a bible and 'converting' the locals, i despise colonialism, it's the perfect excuse to hate the poms..

"And $60 bucks a month does not compute to anything in the western world ."

i thought you only pretended to be an idiot until you said that...

"Australia no more has true poverty as does the UK , no one in the UK is hungry , they just cannot always go to the pub every night , or perhaps cut down to 40 a day"

uhh, the Aboriginals in central Australia?

have you seen their plight?

There are people with virtually zero expendable income in both countries, not that i give a shit about lazy pommy bastards..

you still don't get it, i truly thought you were only pretending, no wonder you're down and out in Indo...


The Abo's did OK until the Australians bolloxed them up .
I do from time to time forget just what a fucking backwater australia is - allow me that .

It is disposable income not fucking expendable income - all income is expendable , only some is disposable .

Little separates us then eh Naga , we both come to the cheapest place in order to scratch a crust .
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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