State May Ease Taxes on Low-Income Workers to Help Meet Daily Needs

The Jakarta Globe
State May Ease Taxes on Low-Income Workers to Help Meet Daily Needs

Camelia Pasandaran & Elisabeth Oktofani

The government is pushing to raise the cap on tax-exempt income in an effort to help workers take home more of their pay, the manpower and transmigration minister said on Wednesday.

Muhaimin Iskandar said the state was considering more than doubling the threshold on tax-exempt monthly income to Rp 2.6 million ($300) from the current Rp 1.32 million.

“This is to free [low-income] workers from the burden [of paying tax],” he said on Wednesday.

President Susilo Bambang Yudhoyono, speaking at a Labor Day event on Sunday, said he had asked concerned ministries to recalculate the maximum level of income not subject to tax.

“I’ve already asked the Manpower and Transmigration Ministry to work with the Finance Ministry and the tax office to review the appropriate amount that should be subject to tax,” he said. 

“Those who cannot afford to pay tax should be exempt from it. They only earn enough to meet their daily costs of living, so it would be unfair to tax them,” the president said.

Under current regulations, monthly income in excess of Rp 1.32 million, but below or equal to Rp 2.6 million, is subject to 10 percent tax. Those earning above this bracket pay 15 percent.

“The target is to double [the threshold]. But at the very least, the tax-exemption level could be raised 75 percent,” he said, adding that the tax directorate had yet to approve the proposal.

But Muhammad Isnur, from the Jakarta Legal Aid Foundation (LBH), was not so keen on the plan, saying it did not address the real problem. “The issue here is having a decent salary to meet daily needs,” he said.

The minimum wage in the capital is Rp 1.29 million, with many workers receiving much less.

Muhaimin said the government was also planning to revise the law governing outsourcing but needed time to negotiate with companies and workers.

Labor unions have long campaigned for the abolition of outsourcing, which allows companies to hire workers on a contractual basis and are thus not obliged to provide severance, health insurance or pensions.

The minister said the government was considering banning the practice, unless for additional work or jobs not integral to a company’s day-to-day operations. “But it should be supervised and guided,” he said.

“But again, we need to discuss it once more with business associations,” he said. “So far, I have received no complaints in response to [the plan].”

On Labor Day, Muhaimin also promised to improve the social security system for workers (Jamsostek), including extending health coverage to include heart disease.

Returning Migrants to Be Retrained

The Jakarta Globe
Returning Migrants to Be Retrained  

The government is planning to provide training centers for the thousands of workers who have been repatriated from Saudi Arabia after overstaying their visas to work there illegally. 

More than 2,000 workers, the last batch to be brought home by the government, arrived in Jakarta on Wednesday. 

Manpower and Transmigration Minister Muhaimin Iskandar said the government was in the process of preparing 38 training centers for the former migrants, most of whom worked as domestics. 

“This is basically a business skills training which can be an alternative means for them to make a living for themselves and their families,” he said. “Therefore, instead of looking for an informal job aboard, they can have a job in their home country,” he said.

Roostiawati, head of foreign cooperation at the Ministry of Manpower and Transmigration, told the Jakarta Globe that the centers would be aimed at encouraging people to become entrepreneurs rather than job seekers.

She added that the centers would be established in districts where large numbers of the workers had come from, and would focus on using locally available commodities to spur business growth. 

“Therefore, by establishing the training skill center making use of the local commodities, the migrant workers can use their skills to create their own jobs so they do not have to go abroad to work,” she said.

Muhaimin said that among other skills, the training program would include workshops on how to set up and operate livestock farms, clothing shops and beauty salons.

He declined to say when the centers would open.

Earlier, the government had arranged flights back to Indonesia for more than 2,000 workers who had overstayed their visas or who were found to have worked in Saudi Arabia illegally. Some had misused their hajj permits. 

Court Hears How Busway Road Rage Shooting Just Missed Flaming Finale

The Jakarta Globe
Court Hears How Busway Road Rage Shooting Just Missed Flaming Finale

The TransJakarta driver whose bus was shot at in a case of road-rage in January testified on Monday that the alleged attacker had come close to blowing up the vehicle.

Taking the stand at the trial of Nico, also known as Siang Fuk, at the North Jakarta District Court, driver Muhammad Fitrianto said the defendant had fired four shots at the bus, narrowly missing its natural gas fuel tank at the back.

Fitrianto said the attack took place on Jalan Pluit Permai in North Jakarta. He said Nico, who was driving a red sedan, entered the busway lane behind his bus and appeared to be in a hurry.

“The incident occurred when I was pulling up to the Pluit shelter to pick up passengers,” he said.

“There were two buses in front of me and while I was waiting my turn, there was a red sedan [behind me] that kept honking its horn,” he added. “But I didn’t respond because I couldn’t do anything. There were two buses in front of me.”

He said he then heard three gunshots, “but I didn’t know where they came from or where they were aimed at.”

Fitrianto said the driver of the sedan then got out of his car and approached his window.

“He knocked on my door with something that looked like a wallet with some kind of badge,” he said. 

“I wasn’t sure what kind of badge it was, but it sounded like steel knocking against my door. Because I was stuck in the traffic and he was driving in the busway lane, I signaled for him to wait.

“Then he went back to his car and drove past and fired a shot at the left-hand side of the bus.”

Fitrianto said he was unaware that one of the earlier shots had only just missed the bus’s fuel tank.

“I only found out that there was a hole by the tank when I was about to fill up with fuel,” he told the court. “It was fortunate that he missed the tank, otherwise he could have blown the bus up.”

Jembar, a TransJakarta official who also testified at the trial, said Fitrianto reported the incident the next day and they filed a complaint with the Penjaringan Police.

Police later arrested Nico at his home in the upscale Pantai Indah Kapuk area of North Jakarta, where they said they seized the gun and uncovered a massive narcotics operation.

Second Insp. Lukman, who was part of the team that handled the case, told the court that police only expected to find the gun used in the attack.

“He gave that to us straight away, but then when we looked around, we found a room that was locked,” he said. “So we asked him to open it, and inside we found a safe. Inside the safe there was a bag containing large amounts of drugs.”

Police also made a further grisly discovery — tied and gagged in the room were two men, allegedly drug runners working for Nico. The men, who appeared to have been tortured, were allegedly being punished for failing to hand over Rp 50 million ($5,850) to Nico. 

Monday’s trial did not deal with the alleged torture.

Police said they retrieved more than 16,000 psychotropic pills, including ecstasy, and a kilogram of crystal methamphetamine in the surprise bust.

Nico did not object to any of the witness statements made on Monday. He stands accused of criminal assault, illegal possession of a firearm and trafficking of narcotics. The charges carry a maximum sentence of death.

The trial has been adjourned to Monday.

May Day Rallies Call for Higher Pay and Social Security

The Jakarta Globe

The overwhelming message on May Day from the thousands of workers who took to the streets in rallies nationwide was a call for better wages amid tougher working conditions.


In the capital, employees from various industries descended on the Hotel Indonesia traffic circle in Central Jakarta on Sunday. Among them were members of the Alliance of Independent Journalists (AJI), who carried a mock cage to protest their working conditions.

Winuarto Adhi, head of the AJI union, told the Jakarta Globe that they were demanding greater protection from the government in response to the growing number of acts of violence against journalists.

“Indonesian journalists face bigger challenges these days, such as an intimidation, threats or destruction of property,” he said “This is evident in the increasing number of violent incidents targeted at journalists. Unfortunately, these cases have rarely been thoroughly investigated by the police.”

Siti Damiti, a street vendor at the rally in Jakarta, bemoaned rising food prices and the perceived marginalization of informal-sector workers.

“Even though food was expensive before, at least we didn’t have to leave home to earn enough to eat,” she said.

She added that she was disappointed with President Susilo Bambang Yudhoyono for neglecting the poor and kowtowing to foreign investors.

“If he wants to make things better, he shouldn’t let foreigners exploit Indonesia and make us strangers in our own land,” Siti said. In Bogor, 500 workers from various factories in the area took part in a similar rally.

Devi, a worker at a textile plant, claimed that she only earned Rp 930,000 a month ($110), far below the minimum wage in Bogor of Rp 1.17 million. She said she could earn Rp 1.6 million, but that would mean working a 12-hour shift.

Yuyus said that he felt compelled to keep working to support his family. He said his job at a mattress factory paid him Rp 1.9 million a month, which was just enough to cover the needs of his wife and four children.

“I’ve worked for 20 years [at the factory], and even though I’m nearing retirement age, I’ve got to keep working because I’m the sole breadwinner in the family,” he said.In Malang, East Java, around 600 workers marched on the City Council to protest violations of the minimum wage, union-busting tactics by employers and the lack of social security for workers’ families.

Mistiani, a factory worker and mother of one, said that she only earned Rp 800,000, while the minimum wage was Rp 1.08 million.“The unions have repeatedly pressed for a wage hike in line with the minimum wage, but to no avail,” she said.

The rally was closely guarded by 600 police personnel and proceeded peacefully. But in Makassar, South Sulawesi, protesters blocked the road to the city’s Sultan Hasanuddin Airport, forcing flight delays of up to half an hour.

The members from nine unions made an attempt to take over the airport but were held off by 300 riot police. They finally dispersed after a two-hour standoff.

Al Jazeera Confirms Knowing of Bomb Plot in Capital

The Jakarta Globe

Farouk Arnaz & Elisabeth Oktofani

International news network Al Jazeera has confirmed that it had prior knowledge of a planned Good Friday bombing in Jakarta and informed Indonesian authorities about the plot.


The confirmation came after news emerged that the National Police were planning to question Al Jazeera cameraman Bobby Gunawan in connection with the plot to bomb Christ Cathedral and a military facility in Serpong, Tangerang, on April 22.

According to the police, Bobby was approached by Imam Firdaus, a cameraman with local broadcaster Global TV, and offered exclusive rights to film and broadcast the bombing. However, Bobby turned down the offer.

Imam and the suspected bombing mastermind, Pepi Fernando, have both been arrested and named suspects.

Osama Saeed, a spokesman at the news network’s headquarters in Doha, Qatar, told the Jakarta Globe that Al Jazeera was informed on April 7 that a group was planning a bomb attack in Jakarta in the “next two weeks.”

“The information we received was incomplete and it was unclear whether the source was credible. The information was passed onto the authorities,” Saeed said.

“Al Jazeera were informed that the authorities were aware of the matter and that it was being dealt with.”

The police said on Sunday that Bobby would be questioned as a witness, but that there was a possibility he would be named a suspect. He could be charged with abetting a crime if it is found that he failed to notify the authorities.

“We want to be very careful when we deal with this case,” a police source said.

“We do not want to spark controversy, particularly because we know that the press has every right to keep their sources confidential. We believe, however, that in the case of terrorist activities, [if the press has prior information] they should report this to the police. Why protect sources or even think about running an exclusive story?”

Seventeen suspects are now being held in connection with the foiled bombing.

Among those being detained are Pepi, believed to be a proponent of the extremist Indonesian Islamic State (NII) movement, which advocates the establishment of a caliphate in Indonesia.

Pepi was also reportedly behind the spate of book bombs sent to prominent figures last month, including Gories Mere, a former counterterrorism official and now head of the National Narcotics Agency (BNN). Pepi’s wife, Deni Carmelita, a BNN employee, has been arrested as an accessory.

Police said they had not found a link between those arrested and known terrorist groups in the country. They have dubbed the band of alleged radicals “Pepi’s Group.”

Marty Says China-Indonesia Ties Strongest Ever

The Jakarta Globe

Indonesian Foreign Minister Marty Natalegawa on Saturday said that bilateral relations between Indonesia and China were currently the strongest they had ever been.


“Indonesia and China’s current relationship is actually at the highest point it has been since we started building the relationship in the last 20 years,” Marty said in a speech at the Indonesia Council of World Affairs (ICWA) at the conclusion of Chinese Prime Minister Wen Jiabao’s two-day visit to Jakarta. 

The foreign minister said Wen’s visit to Indonesia showed how strong ties between the two countries were.

“Improvements to the relationship have been built according to the spirit of friendship, equality, mutual respect and mutual benefit,” Marty said.

Wen also gave a policy speech at the ICWA on Saturday, in which he emphasized the importance of relations with Indonesia and said that China wanted to boost its cooperation with the Association of Southeast Asian Nations (Asean).

“Asean is a political, economic, social and cultural community which has a strong influence,” he said.

“Therefore, China needs to build a partnership with Asean countries so that we can establish a free-trade zone, holding as the basis both the interests of Asean countries and China.”

Wen said China planned to construct land transportation infrastructure from China to other Asean countries in order to help these countries develop their own state infrastructure.

“China is willing to help Asean countries without any conditions, because there are still some countries facing poverty.”


Govt Plays Down Extremist Threat Despite SBY Warning

The Jakarta Globe

A day after President Susilo Bambang Yudhoyono warned of the “serious threat” from Islamic extremism, his chief security minister played down the issue as nothing to worry about. 


Djoko Suyanto, the coordinating minister for political, legal and security affairs, said on Friday that the resurgence of the Indonesian Islamic State (NII) movement was not large enough to pose a significant threat. 

“It’s not true that we’re weak,” he said. “I’m saying that in the national context, we shouldn’t worry about the movement. We only need to raise our awareness.”

He added, “We need to see if the movement is massive enough to get power on the national scale, which it doesn’t have yet.” 

Recent revelations that the spate of book bombs sent to prominent figures last month were masterminded by NII proponents, who champion the establishment of an Islamic caliphate in the country, have shined a light on the movement, which has reportedly been recruiting members undetected by the authorities for 19 years. 

The group is also believed to have been behind the foiled Good Friday plot to bomb a church, gas pipeline and military arsenal in Serpong, Tangerang. 

On Thursday, Yudhoyono acknowledged the creeping radicalization in the country, calling it “a continuous and serious threat in terrorism and in horizontal violence.” 

He called on all Indonesians to help stamp out extremism in their communities, and not just rely on the police to do the job. 

However, Din Syamsuddin, chairman of Muhammadiyah, the country’s second-largest Islamic organization, accused the government of ignoring and even exploiting the growing NII movement. 

“The NII is actually an old issue that’s been around for more than 20 years, or more than 60 if you want to link it to DI [Darul Islam, an extremist movement],” he said. 

“But even though it has claimed so many lives, the government has taken no serious action to address it.” 

He claimed the government was using the NII for political gain. “The government actually supports this kind of movement and uses it as a political commodity, which serves to discredit Muslims,” he said. 

Tubagus Hasanuddin, a legislator from the opposition Indonesian Democratic Party of Struggle (PDI-P) who sits on House of Representatives Commission I, overseeing security affairs, said that lax government oversight had allowed the NII’s numbers to swell to 160,000 nationwide. 

“It’s growth has been quite fast because although the government has known about the NII for several years, it has continued to give it room [to grow],” he said. 

Sidney Jones, a terrorism expert from the International Crisis Group, said there were several variants of the NII across the country, each with different objectives. 

“The NII KW9, for instance, which is led by Panji Gumilang, also known as Abu Toto, doesn’t carry out terrorism,” she said. 

“It carries out fraud to get funding. So it always targets university students as a source of funding.” 

Pepi Fernando, the suspected mastermind behind the Good Friday and book bomb plots, was himself believed to have been recruited on campus. He also claimed he learned to build the explosives on the Internet. 

On Friday, Tifatul Sembiring, the communications and information technology minister, announced his office would block all Web sites promoting terrorism, but not those teaching bomb-making. 

“If they are, by nature, spreading hate, agitating [people], those we will close down. There is a [legal] basis for that,” he said. 

“But if it is something scientific, we do not have any basis to close it down. What is forbidden is bombing people, but the making of those weapons is general knowledge.”

Labor Day: Workers Can’t Afford to Quit Despite Complaints

The Jakarta Globe

Mulyadi is 25, but he’s lost count of how many times in the past three years he has switched factories. 


He works in one for a few months before moving to another, all within Jakarta’s massive Kawasan Berikat Nusantara industrial estate in the Cakung-Cilincing area. 

Thousands of contract factory workers are employed at the KBN in any given year. Some of those workers have worked within the KBN for more than a decade, despite regulations aimed to prevent it. 

“I work mostly for garment factories. The money’s the same everywhere at KBN. I earn Rp 1.38 million [$160] per month,” Mulyadi told the Jakarta Globe. 

“Why do I move around? Not by choice, I can tell you. They’ll just give me a three-month contract or a six-month contract. That’s a lot pressure for us [to turn down the offer], because we know how hard it is to get jobs nowadays,” he said on Friday, two days before May Day demonstrations are expected to hit the capital’s streets. 

“What all of us here at the KBN are most concerned about, though, is unpaid overtime hours. We have to meet the production target, which is quite high. The target depends on company regulations and the type of clothes produced. Sometimes some of us don’t get paid overtime, but we cannot afford to leave.” 

Mulyadi said he would not be among the thousands expected to protest on Sunday. Instead, he said he would join demonstrations on Monday — the details of which were unclear — since Sunday was his day off. 

A Jakarta legal aid group said in February that it received almost 200 labor complaints last year that pointed to the uphill battle workers continued to face in claiming their legal rights. 

Muhammad Isnur of the Jakarta Legal Aid Foundation (LBH) said labor disputes over the lack of insurance, wrongful termination, problematic contracts and outsourcing led to 191 complaints being filed by more than 3,000 workers in 2010. 

“We received complaints about unlawful dismissals, [wage] payments being put on hold and the status of contract workers,” Isnur said. 

According to the 2003 Labor Law, a person can only be employed as a contract worker for two years, with a one-year extension option. Contract workers, he said, are not entitled to receive benefits such as raises, with many being paid less than the standard minimum wage (UMP). 

“A [permanent] worker’s rights include a health insurance scheme, a pension fund, leave, overtime and being paid in accordance with the UMP,” he said. 

The 2011 UMP for Jakarta is Rp 1.29 million per month, a 15.8 percent increase from last year. Labor unions, however, have said the figure is too low. They cite the Reasonable Living Cost Index (KHL), which has been set at Rp 1.4 million per month. 

Laborers at the KBN said their daily problems were usually quite simple, but they still remained unresolved. 

Yana, a 32-year-old mother of two, said her major problem at the garment factory was that the model for the clothes was too complicated at times, and that workers could not go home until all the day’s work was finished. 

“Our main problem is the high production target. Every garment model is different. We could produce, for instance, 200 pieces in an hour or 400 pieces in an hour. It depends on the make of the clothes. We hate that pressure. We have to finish in eight hours of work, or work overtime until we finish, before we can go home,” Yana told the Globe. 

Etty, 27, said she had worked at the KBN since 1999, and she knew that many of the factories there did not pay for menstrual leave. “Every month, the law requires that all female workers are given two days of paid menstrual leave. The company should pay us as much as Rp 92,000 for this leave, but it doesn’t. We lose money like this, but not everybody realizes that,” Etty said. 

“Aside from the short-term contracts and unpaid overtime hours, we have many other concerns. However, we are actually quite afraid to join the [May Day] rally. We do not want to lose our jobs.” 

A male worker who refused to give his name said he would likely not join in the demonstrations on either Sunday or Monday because he was not a member of a labor union. 

“Unless we join a labor union, we do not know what it is we are going to rally for. Most of the time these rallies are organized by labor unions, but our company does not have a labor union,” the worker said. 

Budi Wardoyo, secretary general for the Indonesian Labor Movement Association (PPBI), said 100,000 workers were expected to join Sunday’s May Day demonstrations. 

He said the rally would start at 9 a.m. at the Hotel Indonesia traffic circle. From there, demonstrators would march toward the Presidential Palace.

Boy on Trial for Phone-Voucher Theft As Defense Rails Against ‘Trivial’ Case

The Jakarta Globe


A 14-year-old student accused of stealing a Rp 10,000 ($1.15) cellphone voucher went on trial on Thursday, even as defense lawyers insisted such a minor dispute should have been settled out of court.

The case of Deli Suhandi made headlines earlier this month after it was revealed he had been languishing for weeks at the Pondok Bambu Penitentiary along with hardened criminals for a petty offense.

He was released from prison a day after reports of his situation came out, but charges against him had not been dropped.

Agam, a prosecutor at the Central Jakarta District Court, said after Thursday’s closed-door hearing that Deli could face up to seven years in prison. Under the law, trials for juveniles are required to be closed to the public.

Deli was arrested along with two school friends, Muhamad Luki and Rahmat Wibowo, after witnesses reported them stealing phone cards from a shop after a riot along Jalan Tanah Tinggi on March 10. Luki and Rahmat were released from police custody later in the day.

Defense lawyer Hendra Supriatna said police did not have a warrant to arrest Deli at the time. He also said the boy was not accompanied by a lawyer during his interrogation.

“The indictment is too vague and there are some violations [by police],” he said. “Rahmat and Muhamad were [subjected to] intimidation during questioning. The police failed to show a warrant for Deli’s arrest.”

Agam insisted there was a lawyer present during the child’s interrogation.

Hendra added that prosecutors and the Johar Baru district police “neglected” a 2009 joint ministerial decree on dealing with children in conflict with the law by throwing Deli in jail.

“This kind of a case can be solved by discussions among the witnesses, the victim and the suspect,” he said.

Hendra said Deli’s case was a wake-up call for the government to properly enforce the decree and “prevent other children from being tried for trivial cases.”

He added: “If this kind of case can happen in Jakarta, where the access to information is easy, what will happen in small and remote provinces?”

The trial was adjourned until May 5. Deli’s lawyers are expected to present their preliminary defense, while the prosecution will reportedly call on witnesses to testify.

Fisherman Reduced to Scavenging Plastic

The Jakarta Globe


Some of the country’s best restaurants serve up green mussels steamed, baked or in curries. But the menu price on a single plate of the delicacy hardly reflects the amount of labor put into the shucking of the mollusks by the wives of North Jakarta fishermen on any given day.

North Jakarta’s fishing sub-district of Cilincing is renowned nationwide for its green mussels, but fishermen and their wives are complaining that with growing pollution in Jakarta Bay tainting the seafood paired with falling demand in the capital, more and more shuckers are losing their jobs. Many are now scavenging for food instead.
During Wednesday’s visit by the Jakarta Globe, 54-year-old Astia said that she has been shucking mussels for 10 years, but she was earning less today for double the work she was doing in previous years.
“The green mussels are smaller now than before. We earn Rp 2,000 [23 cents] for a single kilogram of green mussels, but we have to peel more of them nowadays. We work so much harder, but we still make less,” Astia told the Globe, as she sat with other women around a pile of mussels, removing them from their shells one at a time.
“But nobody cares. Nobody gives us basic food supplies. So, we have to do whatever we can to eat rice.”
Ruswati, 34, said she earned a maximum of Rp 18,000 on a good day of shucking. But her eldest son, 15, had to be taken out of school to make ends meet three years ago, joining his father fishing. However, Ruswati said she counted herself among the lucky ones.
Suwardi, 32, said he used to set out for fish and mussels at the same time, but due to changes in the weather and environment, “there is no job available for people like me anymore.”
“I now look for plastic bottles in piles of rubbish by the beach, to sell them. At least my family can stay alive,” Suwardi said.
“I sell one sack of clean bottles for Rp 5,000. A bag of dirty bottles gets me just Rp 3,000,” he added.
“Although we end up eating just tofu with some salt, we have to keep trying to make enough so we can eat rice. We’ve grown tired of complaining to President Susilo Bambang Yudhoyono. He does not seem to care, even though we have protested in front of his palace.”
Riza Damanik, secretary general for the Fisheries Justice Coalition (Kiara), said fishing families in Cilincing were being pushed into poverty and had resorted to scavenging because of the pollution affecting Jakarta’s northern coast.
“Mussels are among the fastest to respond to changes in the environment. And there are so many industries polluting the Jakarta Bay with toxic waste, for instance,” he said.
“Pollution is destroying the bay, and, we believe, so will the city’s land reclamation project there, if goes ahead. All this pollution will affect the quality of marine life, which in turn will directly affect the lives of fishing families,” Riza said.
“Fishing families across Indonesia are losing their livelihoods because pollution is destroying our bays. Pollution and land reclamation projects will push even more fishing families into poverty. They become scavengers, or laborers.”
The same sentiments were shared by green mussel entrepreneur Minen, who told the Globe on Wednesday that his three farms were affected too.
“I would get, for instance, just 100 sacks of small green mussels from all three farms in a single day. And we cannot use all of them because some are polluted by toxic waste!” Minen said.
“I invested Rp 6 million to build the farms, for the bamboo, the nets and the people,” he said. “Instead of profit, I have been making losses. Still, I have to try making money. I can help people in my neighborhood to have an income, even though it’s not a lot.”