“Employment practices on this site are highly discriminatory,” SERBUK General Secretary Khamid Istakhori said. “Chinese workers are paid around seven times more than Indonesian workers, despite working every day in extremely dangerous conditions. This strike is a clear signal that workers will not accept this kind of treatment anymore.”
On 27 December, SERBUK complained to the Muara Enim Labour Inspector regarding the site’s dismal working conditions. As a response, the inspector asked the workers and the company to submit all the necessary information needed to properly mediate the issue.
The union also informed the local manpower office of its strike action for possible mediation. On two occasions, the company reportedly refused to attend the meetings, arguing that the responsible officials were in China. The union said that even after the workers went on strike, there has been little progress in resolving the labour dispute.
“The company’s consistent refusal to engage with the demands of the workers and the Labour Office indicates that it has little intention to comply with Indonesian labour law,” Istakhori said.
According to various reports, Indonesia is in the midst of an infrastructure boom. However, international financial institutions are playing a limited role, with private finance mobilising to fill the gap. At the same time, unions across the country have actively resisted the proposed Omnibus Law, a measure which they said would undermine workers’ security of tenure and lead to lower wages and weaker unions.
BWI observed that across the region, there is an increased presence of Chinese state-owned construction companies winning major infrastructure concessions, which are often tied to Chinese finance. “Cheap labour, poor working conditions and refusal to recognise workers’ freedom to associate form an integral part of their financial advantage,” BWI Asia Pacific Regional Representative Apolinar Tolentino explained.
“As such, there is more at stake with the Sumsel 1 workers’ strike action. By showing courage, they are extending their solidarity to and taking a stand on behalf of all the workers in the Asia-Pacific region,” Tolentino ended.