Indonesia: Frequent Occurrence of Demonstrations
In early April, large-scale demonstrations against the amendment of the labor law broke out everywhere in Indonesia on the grounds that such an amendment will be unfavorable to workers. In Jakarta, demonstrators involving 10,000 people organized by the All-Indonesian Workers Union Federation (KSPSI)
In Bandung and Chimahi, 600 textile firms temporarily suspended operations under the influence of demonstrating workers
The current labor law enacted in the days of the Megawatti administration contains provisions on dismissal and retirement allowances which are beneficial to workers. Therefore, there is widespread dissatisfaction on the part of investors. For this reason, the Yudhoyono administration plans to amend the labor law in order to improve the investment environment.
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