Statement of GSBI in National Action 20 November 2019



Cancel Revision of Labor Law No. 13/2003,
Revoke Government Regulation No.78 / 2015 On Wages,
Cancel Increment on Contribution of Health BPJS
and All legislation products that are detrimental to Indonesian workers

Greetings democracy !!

The second period of Joko Widodo's administration was disastrous for the working class and all the people of Indonesia. The labor class continues to be faced with increasingly intensive deprivation of wages. Through the political scheme of cheap wages in Government Regulation (PP) No.78 / 2015, it is not an increase in wages that can meet the living needs achieved by laborers, but rather an increasingly sharp wage deficit continues to hit the lives of workers in Indonesia.

In setting Minimum Wages  for year of 2020 year through the Minister of Manpower Circular Number: BM / 308 / HI.01.00 / 2019 concerning Submission of Inflation Rate and Gross Domestic Product Growth in 2019. The Ministry of Manpower, sets the minimum wage increase in year of 2020 to only 8.51% based on the level of national inflation of 3.39% and national economic growth in the range of 5.12%. That means during the five years applied, PP No.78 / 2015 limits wage increases to only around 8%, a far worse condition if compared to before the stipulation of the regulation.

A wage increase of only 8.51% really hit the working class and far from the ideal needs of the people's lives. Because, on the other hand the government actually to increase various basic needs of the people. Call it an increase in BPJS Health contributions which reached 100%, an increase in the basic electricity tariff of 900 VA by Rp 29,000 / month, so that food prices continue to rise, and other public costs such as education. That is, the working class and the people of Indonesia will increasingly fall into acute poverty, because the wages earned are far out of proportion to the increasing necessities of life. The Jokowi government made the people of cash cow by extorting, forcing and robbing public money through various neoliberical policies.

The government thus continues to facilitate the interests and  business of the domestic  large bourgeoisie and international monopoly capitalists. Various barriers to investment and foreign debt continue to be cut by the government. President Jokowi continues to attract various investors to enter and invest in Indonesia. Even to make it easier, the government will apply the rules of merging several laws (Omnibus Law) as a deregulation program. This is inseparable from the insistence of global financial institutions and imperialist countries, especially the United States. By asking Indonesia to make it easier to access foreign investment.

The World Bank (World Bank / WB) in April 2018 released the World Development Report which aims to direct the pace of economic development and development of all its member countries to suit the wishes of the imperialist countries. One of them is the urge to change labor, industry and employment policies. This means that the World Bank asks to immediately issue regulations on work flexibility and wages. The impact is the creation of an abundant labor market, perpetuating a shorter contract system, facilitating the implementation of outsourcing, longer working hours, increasing the amount of work that is more burdensome, and ease of layoffs without compensation.

In order to welcome the directives of imperialism, the Jokowi government legitimized it by description that "an increase in people's welfare can be achieved through increasing the number of jobs in line with efforts to improve the investment climate in Indonesia. Therefore it is necessary to create a conducive business climate in the field of manpower and business security, one of which is through improving investment regulations that are investment friendly ". The point is that the government make the people as the target of buying and selling with companies,  so that the wages of the working class can be reduced and more cheaply to make it comfortable and increase profits for capitalists. And keep in mind, to ensure the availability of a large labor market, this means that monopolistic practices and land grabbing in rural areas will be more intensive. Because only then will poverty and acute crises in the countryside be created which will cause large-scale unemployment.

The Jokowi government will also revise Law No. 13 of 2003 concerning Manpower. The revision actually has long been a plan and discourse, the goal is to remove obstacles to the sustainability of imperialist business in Indonesia. Through the government, parliament and supported by the large bourgeoisie, the imperialists, especially the United States, want to revise all the obstacles to their business and investment. This includes wages and normative rights of the working class which are considered burdensome. All of that for the sake of dredging ever-greater super profits.

Then it is a lie conveyed by the government, if the revision of Labor Law No. 13 of 2003 is carried out to guarantee and protect labor rights and eliminate unemployment. On the contrary, the revision is inseparable from the conditions of the global and domestic crisis in Indonesia. The fact that the neoliberal scheme has failed miserably and is proven to collapse cannot be covered up again by imperialist countries. Various imperialist countries are now experiencing economic stagnation and leading to increasingly sharp crises. The only way to prevent the collapse of various foreign monopoly capitalist companies is by opening up more exploitation spaces in various colonies countries and semi-colonies like Indonesia. Indonesia is a potential market for implementing imperialist capital exports. However, maximum flexibility is needed to utilize the people for the benefit of their business.

Economic development based on capital and foreign investment, has been demonstrated by the Jokowi government by intensifying infrastructure development in various regions and industrial zones. Jokowi's government promises that industrial development which is widespread and equitable will create many jobs for the people.

But this is only an illusion, what actually happens is business equality for the big domestic bourgeoisie and opens up opportunities for foreign monopoly capitalists to increasingly equitable business arena. For example, the construction of toll road infrastructure at a high cost reflectsthat the development from the beginning was not intended for the interests of the people, but rather to facilitate the flow of distribution of large companies.  Unequal development for the people in Indonesia will never be completed if   monopolies and land grabbing in rural areas are still intensive.

Equitable development can only be done if inequality in land ownership can be eliminated so that it is possible to develop an evenly distributed national scale industry. Without that, what happens is just such inequality as now. Because of inequality and differences in wages between regions, now many entrepreneurs are moving factories and their businesses to various areas with lower labor costs. The result is that unemployment in various cities is getting higher and exploitation through theft of surplus value continues to grow. While large companies get multiplied benefits from these conditions.

Even the government precisely provides legality by issuing policies on the application of cheap wages as was done by the Governor of West Java who legalized the Labor -Intensive Wage for dozens of garment sector companies in the West Java region. The creation of equal employment opportunities must be accompanied by job security, fair wage systems and humane work conditions. The government's idea is to abolish the city / district minimum wage system (UMK) and place the provincial minimum wage (UMP) as the lowest wage in one province. Not the right and wise solution in answering the wage gap that is currently happening.

The right solution in responding to the current situation of the working class is to ensure the implementation of genuine agrarian reform in rural areas throughout Indonesia. Eliminating land monopoly carried out by landlords, so that the peasants can be sovereign of their land. So that in the countryside will create advanced economic development and continue to grow, give birth to prosperity and avoid the birth of large-scale unemployment. True agrarian reform is the main key to building an independent national industry and free from foreign investment and debt.

Able to build independence in the national industry by absorbing productive forces and developing technology based on the development of scientific knowledge and serve the people. Thus, the problem of inequality, wage differences, wage deficits and the implementation of the National Minimum Wage can be realized. The national wage system must have the same minimum wage value and apply nationally.

In the momentum of the 20 November 2019 National Action that was carried out in various cities in Indonesia, the Center of Indonesian Labor Struggle (GSBI) confirmed its statement and views in rejecting all government policy schemes under the leadership of Jokowi-Maruuf Amin and demanded:

1. Cancel the revision plan of Labor Law No. 13 of 2003
2. Cancel the increase in minimum wage of 2020 based on PP 78/2015 with 8.51% and provide labor wage in accordance with the minimum living needs of laborers with family members (3 childrens)
3. Revoke PP No. 78 of 2015 concerning Wages
4. Revoke Ministery of Manpower Regulation No.231 year of 2003 concerning Procedures for Minimum Wage Suspension
5. Revoke the Decree of the Governor of West Java concerning Labor-Intensive Wage
6. Stop layoffs,  Union Busting and  and criminalizing against workers
7. Remove the Contract, Outsourcing and Internship System
8. Cancel the  Increment on Contribution of Health BPJS
in all classes, Provide Social Security which is fully borne by the state
9. Lower the Prices of Basic Needs
10. Stop Revocation of Public Subsidies for the People
11. Remove the entry into force of income tax for workers
12. Revoke the determination of industrial and company areas as Indonesia's National Vital Objects
13. Run a Genuine Agrarian Reform and Build National Industrialization as a solution for creating jobs and fair wages for workers

Thus this statement was made, and GSBI also called for to  all workers in Indonesia to build and strengthen unity with the people in various sectors for struggle on jobs, job certainty and a fair wage system, as well as fight against  all forms policy of Jokowi-Maruf Amin that plunder demoractic rights of the people.

Jakarta, November 20 2019,


Chair person

General Secretary


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