Indonesia’s Chamber of Commerce and Industry (Kadin) has called on the government to revise the 2003 Manpower Law, saying that the law has become a target of complaints by investors.
“We need to review Law No. 13 [on manpower] because this has become the main target of complaints by both Indonesian and foreign investors,” said Kadin chairman Roslan Roeslani in his closing remarks of the 2017 National Coordination Meeting of Kadin in Jakarta on Tuesday evening.
The law, he said, was outdated given the advanced digital business climate and it did not increase productivity.
He further suggested that the government revise the law and give full authority to special economic zone operators to formulate a better wage structure.
“Full autonomy for special economic zones in formulating labors incentives will help the central government sync its policies,” Roslan said.
Special economic zones are spread across the archipelago, comprising factories and firms in various sectors in an integrated concept with ports, industrial facilities and other infrastructure. The zones are managed by regional governments, private firms or mixed management.
In addition to manpower management, Kadin suggests that the zones add a special division to help investors acquire building permits. (bbn)