The quality of labor relations will support sustainable investment to improve the welfare of workers and the people.
By
KOMPAS EDITOR
·3 minutes read
KOMPAS/TOTOK WIJAYANTO
Employees of the shoe factory PT Dean Shoes Karawang, West Java, hugged each other after receiving a letter of termination of employment, Tuesday (28/3/2023). PT Dean Shoes in Karawang Regency closed the factory and stopped its operations in April 2023. A total of 3,329 workers were laid off.
Apart from driving the economy, investment can also absorb labor and impact micro, small and medium enterprises (MSMEs) and other related sectors. In fact, investment is predicted to be an engine of economic growth that can partially replace the contribution of household consumption to Indonesia’s GDP.
Based on data from the Investment Ministry/Investment Coordinating Board (BKPM), investment realization in Indonesia in the first quarter of 2023 amounted to Rp 328.9 trillion (US$21.9 billion), while the workforce absorbed 384,892 people. This figure consists of Rp 177 trillion in foreign investment and Rp 151.9 trillion in domestic investment. About 52.6 percent of the domestic investment was targeted outside of Java.
The same data show Singapore ranks first in the list of countries that have realized their investment in Indonesia. The other four countries with the largest investments in this country include Hong Kong, China, Japan and the United States.
China is also Indonesia’s main trading partner. Data from Statistics Indonesia show in the first quarter of 2023, total non-oil and gas trade between the two countries was the highest compared to other trading partners.
This, among other things, has pushed the Chinese and Indonesian governments to commit to improving the quality of labor relations in investment cooperation in Indonesia. The quality of labor relations is the focus of a benchmarking program spearheaded by the Chinese government and the Indonesian Manpower Ministry in five cities in China this May (Kompas, 23/5/2023).
There are labor norms that must be met in investment cooperation relations. These include workers’ rights, occupational safety and health, communication among workers and between management and workers as well as facilities for workers. Fulfilling these norms, through laws and regulations or standards in the field of labor, will allow investment to be sustainable and improve the welfare of workers and the people.
Fulfilling these labor norms has been and is being pursued by PT Gunbuster Nickel Industry (GNI). The nickel smelter in North Morowali, Central Sulawesi, is recovering after a conflict with its workers in January 2023 (Kompas, 25/5/2023).
Investments that improve the welfare of workers and the people help realize economic growth that is enjoyed by everyone. The role and steps taken by the Indonesian Manpower Ministry are important. This is reflected in the ministry’s vision as stated on its website, namely the realization of a productive, competitive and prosperous workforce.
