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The Indonesia parliament and the government enacted the Job Creation Bill into Law amid rejection and protests from labor unions and civil society groups. The Oil Palm Labor Coalition pointing out the Job Creation Law have eliminated job security, wage certainty and social security. In the palm oil sector, this law is very burdensome for workers. Thus, workers potentially become casual workers, contract workers or working in insecure jobs for indefinit time.

“The Job Creation Law removes all limitations for outsourcing practices, outsourcing will be applied free without limitation. This law also removes the maximum time limit for work contracts. Work practices such as outsourcing, work without certainty of status, wages based on output, the use of casual daily laborers are bad facts in oil palm plantations. The Job Creation Law legalized modern slavery in oil palm slavery and reduced severance pay which eased company to lay off workers. This impartial policy puts oil palm plantation workers into increasingly helpless position,”said Herwin Nasution, Chairman of SERBUNDO.

Ismet Inoni, from the national trade union GSBI DPP, pointed out that the Job Creation Law does not accommodate job security and decent wages at all. “The Job Creation Law opens industrial flexibility and work systems by legalizing contract work without time limits, outsourcing for all types of work. This law reduces workers’ rest periods and actually increases overtime hours. In oil palm plantations, because of the too high work target, workers have to work long hours. But those extra hours according to this bill will not be count as overtime. The additional overtime hours put oil palm plantation workers in an exploitative condition, ”said Ismet.

Zidane, Coordinator of the coalition KBS, said that the content of the Job Creation Law shows the government’s poor commitment to labor protection. “Omnibus Law has eliminated guarantee for job security. Article 81 point 15 of the Ciptaker Law changes the content of article 59 of the current Manpower Law about status of contractual work which can only be made for work which is estimated to be completed in a short time. The government removes the maximum limit of 3 years, the period or completion of a certain job that is determined based on the work agreement. This means that the government fully submits the limit of the contract period to the agreement between the employer and the worker. Thus, government is not present to guarantee job security. The loss of job security will eliminate certainty of wages and social security, ”said Zidane.

The Oil Palm Labor Coalition noted that the number of oil palm plantation workers in Indonesia reached 20 million. Of this number, more than 60% are workers with vulnerable employment relationships, most of them are women. “Women dominantly work without obtaining labour rights, nor job security, documentation of work agreements, minimum wages and without adequate health protection. With the Job Creation Law, the conditions of female workers will become increasingly vulnerable. The Job Creation Law is very detrimental to oil palm plantation workers. The Job Creation Law in no way fulfills the needs of workers for job security, certainty of wages, social protection and a decent life. We firmly refuse the Job Creation Law, ”said Zidane.

Jakarta, October 8, 2020

Contact person :

Herwin Nasution – SERBUNDO (082267335183)

Ismet – GSBI (081383493575)

Zidane – Sawit Watch/Koordinator Koalisi Buruh Sawit (085846529850)

Taufik – FSP Bun Rajawali (081331021025)

Dianto Arifin-SEPASI (081250888050)

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