Indonesia - Contract labour increasing (2011)

On 23 December, Indonesian Prosperous Labour Union (KSBSI) Chairman Rekson Silaban said outsourcing and the contract system had sharply reduced the number of permanent workers in the country from 67% of the total formal labour workforce in 2005 to only 35% this year, citing reports from the World Bank and the ILO. Rekson said outsourcing would continue to hamper industrial relations if no legal solutions were made to address the problem. On 1 February, 500 contract workers from PT Jakarta International Container Terminal (JICT) staged a protest before the main gate of Tanjung Priok Port, North Jakarta, to demand permanent employee status. «We have been working at the firm’s main division for 15 to 20 years, but we have yet to be made permanent employees», said Sutimanto, Chairman of the JICT contract worker association. The labour law bans a company from using contract workers at its main division, Sutimanto added. Contract workers earn IDR 1.3 million (USD 140) a month, 10% of the wages earned by a permanent worker.

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