Indonesian unions cancel rally as president delays labour rules debate
By Maikel Jefriando
JAKARTA (Reuters) - Indonesian trade unions on Friday called off a rally planned for next week after President Joko Widodo said he would postpone a parliamentary discussion on changes to labour rules.
Widodo said in a statement that he and the speaker of parliament had agreed to delay debate on the labour section of the Job Creation bill, but would go ahead on other aspects.
"This is to give a chance for us to explore further the substance of the relevant articles and also to hear from stakeholders," the president said.
The bill, which was submitted to parliament in February with over 1,000 articles, aims to change scores of existing laws to cut red tape and attract investment into Southeast Asia's largest economy.
The labour law section, which includes a controversial reduction in mandatory severance pay, has drawn criticism from trade unions, who accuse the government of siding with companies.
Unions had threatened to demonstrate in front of parliament building on April 30 to block the bill, despite a ban on large gatherings to control the new coronavirus outbreak.
"Today the president has released an official statement to delay the Job Creation bill's labour section during the coronavirus pandemic. Therefore, unions ... declare we cancel our planned action," Said Iqbal, who heads the Confederation of Indonesian Trade Unions, said in a statement.
Iqbal said he was confident the president would be more open to listening to views from all stakeholders, including workers, after the pandemic is over.
Unions had previously called the bill "modern-day exploitation" because of the significant cut in severance benefits and changes in how the minimum wage is set.
Government officials have argued that the relaxation of labour rules is necessary to create jobs for 7 million unemployed Indonesians.
(Writing by Gayatri Suroyo; Editing by Kevin Liffey)
