Advertisement

Indonesian unionists threaten to paralyse Jakarta over Omnibus jobs law they say will cut minimum wage

  • Workers brave forecasts of torrential rain to gather outside House of Representatives
  • Joko Widodo’s government says law is needed to attract investment and boost job growth; workers fear it will take away their rights

Reading Time:3 minutes
Why you can trust SCMP
Workers protest in Jakarta over Indonesia’s new labour law. Photo: Muhammad Rusmadi

Braving forecasts of torrential rain, workers from a coalition of labour unions gathered outside the House of Representatives in the Indonesian capital of Jakarta on Monday, to protest against a new law they believe will cut severance pay and the minimum wage.

Advertisement
While the unions are demanding that lawmakers scrap the Omnibus Bill on Job Creation, the government of President Joko Widodo remains unmoved, despite multiple demonstrations and a strike in the capital last week setting up a showdown for when lawmakers return from recess on January 20.

The government insists the bill is required to scale back labour regulations that are blocking investment and job growth in Southeast Asia’s largest economy.

While the unions have not been privy to the draft law, they believe it will affect severance pay, working hours and the minimum wage, all of which are sensitive issues among workers and low-income Indonesian families.

Labour protests were also held on Monday in the provinces of East Java, Central Java and South Sumatra and the unions have promised greater and more intense protests in the coming days.

Advertisement

Union leaders have threatened to mobilise tens of thousands of protesters on January 20 to paralyse Jakarta’s commercial and business districts, as they have done in the past.

Advertisement