UNAIR NEWS听听Airlangga (UNAIR) has a lot of experts in different field of studies. One of them is Dr. M. Hadi Subhan, S.H., M.H., C.N., an expert in labor and bankruptcy law.听 The man, who was born in Tegal, Central Java, has shown a great dedication and concern for the labor rights. Therefore, most of his researches and ideas were about the labor climate or employment in general.
It is quite understandable if the labors often go on strike, either on Labor Day on the first of May or when the administration is reviewing the city/provincial minimum wage. Hence, there is often a rumor saying this unfavorable Indonesian labor climate can affect domestic investment.
According to the Head of Student Affairs of UNAIR, this is a baseless speculation. He said that, as many researchers have shown, the labor climate in Indonesia is not the main factor affecting the investment. Labor condition is only at the seventh among the factors.
淭he first factor affecting Indonesian investment is the infrastructure availability, said the lecturer who took his academic degrees in UNAIR. 听The second factor is the legal certainty and the third is tax certainty.
In conclusion, if there is a critical investment issue, those three factors should be evaluated. Moreover, the labor strikes happen for a reason and it is a good reason. 淚t is only natural if the labors demand fair wages. What they do is protected by the law, said Hadi Subhan.
On account of that fact, it is relevant for the state to pay more attention on infrastructure, legal certainty and tax certainty issues. Excellent distribution access or road availability is an absolute necessity. Certainty and law enforcement are also important elements.
Evidently, the regulations in Indonesia are well-made but their enforcement is often unsatisfactory, for example the phenomena of labor coming illegally from other countries, especially when they are merely manual workers.
There must be a certainty on tax value as businessmen will take it into account when they are considering to make investments. 淭he point is, this labor climate is still on the right track, he stated. (*)
Editor: Nuri Hermawan
