Government brings regulation in place of labour law

19 Sep '06

2 min read

Erman Suparno, Minister of Manpower and Transmigration has informed that Government would issue a regulation elaborating termination procedure and severance payments for workers in order to provide them job security.

She elaborated that regulation will deal with issues such as outsourcing, contract-based workers and other contentious issues and it will not be contravening the labor law seeking the best solution so that employers do not feel taxed while implementing it.

The Minister further added that Government would deliberate with concerned parties like labour unions and employers before issuing the regulation.

The plan to amend the labour laws was done away after the detailed study of the laws conducted by five state universities as per the instructions of President Susilo Bambang Yudhoyono, recommended certain steps.

Employers have welcome the planned regulation saying that it should accommodate their wishes. Secretary-General of Indonesian Employers Association (Apindo), Djimanto expressed confidence that regulation will take care of problems if there is major job reduction.

He said that it was imperative for small and medium scale industries which are labour-intensive to reduce jobs to survive in the already poor state of the economy.

On the other hand, Rekson Silaban, Chairman of the Confederation of Indonesian Prosperous Labor Unions (KSBSI) said that regulation should not be contrary to the labour laws. He demanded that regulation should clearly define issues like outsourcing and ratio of permanent and non-permanent workers.

More General News - Indonesia...