The Industry Ministry, in collaboration with the National Police, will provide “extra security protection” against disruptive labour disputes and worker protests to more than 64 companies and 14 industrial estates deemed to be vital national installations.
Demonstrations and strikes are prohibited from companies and zones deemed to be vital installations, and the army and police can take direct action against any workers found to be taking industrial action that disrupts a vital installation.
Article 1 paragraph 1 of Presidential Decree (Keppres) No. 63/2004 on safeguarding national vital installations stipulates that a zone, building or business can be designated as a national vital installation if any threats levelled against it could lead to dire consequences for development, chaos in the transportation and communications sector or the disruption of state governance.
Pursuant to Industry Minister Regulation No. 466/2014, the companies identified as requiring vital installation certification include cooking oil and crude palm oil manufacturer PT Smart, petrochemical specialist PT Chandra Asri Petrochemical, pulp and paper producer PT Indah Kiat Pulp and Paper and wheat flour producer PT Indofood Sukses Makmur. The industrial sectors certified as vital installations included raw materials for explosives, aviation, salt, sugar, paper and pulp, metal, cooking oil and palm oil, shipbuilding, petrochemicals, fertilizer, cement, telecommunications, flour and industrial estates.
The industrial zones that get extra protection include state-owned PT Kawasan Berikat Nusantara in North and East Jakarta, as well as Batam-based industrial estates PT Batamindo Investment Cakrawala and the Kabil Integrated Industrial Estate in the Riau Islands province.
The level of additional “security” provided is to be determined according to the scale of investments they receive, their size and the number of their employees. The Ministry hopes that the additional security will make Indonesia more attractive to investors.