UNIONS USE MAY DAY TO CONTINUE PROTESTS AGAINST

UNCLAS SECTION 01 OF 03 JAKARTA 005486

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EAP/MTS AND DRL/IL
DEPT OF LABOR FOR ILAB

E.O. 12958: N/A
TAGS: ELAB ECON EINV PGOV PHUM KJUS ID
SUBJECT: UNIONS USE MAY DAY TO CONTINUE PROTESTS AGAINST
LABOR REFORM

REF: A. JAKARTA 4465 - GROWING WORKER PROTESTS

B. JAKARTA 3563 - INVESTMENT CLIMATE PACKAGE

C. JAKARTA 1645 - AMBASSADOR DISCUSSES LABOR REFORM

Summary
--------------


1. (SBU) Indonesian unions used May Day to continue their
street protests in Jakarta and other major cities against
earlier government plans to amend the 2003 Manpower Act to
improve the investment climate. United firmly against any
revisions to the law, labor leaders turned out 30,000 or more
demonstrators, many of whom came in from Jakarta's
industrialized satellite areas. The protests at the Palace,
Parliament and major thoroughfares remained peaceful through
late afternoon when a heavy rainstorm prematurely ended the
street action. The GOI took no chances in the capital and
organized a massive security presence of some 21,000
personnel. In the run-up, Jakarta's police chief spoke of
using deadly force to stop violence, sparking some
controversy. With more than 10,000 demonstrators at the
gates, parliament members sided with unions and pledged not
to pass any amendments. Indonesia's largest union
confederation has planned another major protest in Jakarta
for May 3. With the Government on the defensive and timid in
the face of protests, and parliament members siding with the
unions, amending the Manpower Act any time soon appears
increasingly difficult. End Summary.

Unions Follow "Success" of April Demonstrations
-------------- --


2. (SBU) Tens of thousands of protestors joined in large
union-led May Day demonstrations in Jakarta and other major
cities, continuing protest actions against the Yudhoyono
Administration's earlier plans to revise the 2003 Manpower
Act. The May 1 demonstrations followed the unions' perceived
success in halting the amendments, which stand at the center
of the GOI's 2006 investment policy package. The revisions
would create greater labor market flexibility by bringing
matters such as severance pay, contract labor and outsourcing
more in line with Indonesia's economic competitors.
Organized labor has united firmly to reject any changes. In
the aftermath of some 20,000 workers demonstrating in the
capital on April 5 against the amendments, President
Yudhoyono agreed on April 7 to refer the labor law to
academics and tripartite negotiations, rather than introduce
government-drafted amendments to the House of Representatives
(DPR). Government officials, showing themselves on the
defensive, questioned why unions would proceed with May Day
demonstrations when they had already won the point in April.

May 1 Turnout 30,000 Plus in Jakarta
--------------


3. (SBU) The May 1 demonstrations in Jakarta featured some
30,000 or more protestors, according to our own partial
observations, police statements and media accounts. If this
preliminary estimate holds, the May 1 protests would be
somewhat larger than the April 5 demonstrations. Union
organizers inflated their estimates of attendance, with some
claiming as many as 200,000 on the streets. Unions bussed in
many of the protestors from Jakarta's satellite industrial
areas, raising some questions about possible outside funding
for the protest. Two umbrella labor confederations, the
Indonesian Prosperity Trade Union (SBSI) and the Indonesian
Trade Union Congress (KSPI) represented most of the unions
participating in the May Day action. Indonesia's largest
confederation, the All-Indonesia Trade Union Confederation
(SPSI) did not endorse the May 1 protests, planning instead
to hold its own demonstrations on May 3.


4. (SBU) The DPR and the major round-about by Hotel
Indonesia attracted two large concentrations of protestors,
each numbering perhaps 10 to 15,000. Those assembled by
Hotel Indonesia marched to the presidential palace early in
the afternoon. A smaller protest took place outside the
Manpower Ministry. Workers carried banners calling for
rejection of the Manpower amendments and criticizing world
capitalism. As of late afternoon, demonstrations in the
capital proceeded peacefully, apparently avoiding the

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destruction of public property that marred the April 5
action. The only confrontation reported was at the
Sukarno-Hatta International Airport, where workers attempted
to block a back access gate. A heavy rainstorm struck the
city mid-afternoon, dousing workers' cries and prematurely
ending most of the street action.

GOI Calls Out Heavy Security Presence
--------------


5. (SBU) In the face of rumors and union leaders' claims of
100,000 or more workers headed into Jakarta, and loose talk
of a nationwide strike, the GOI took no chances in the run-up
to the May 1 demonstrations. With President Yudhoyono (SBY)
away in the Middle East, Vice President Jusuf Kalla and
Jakarta Governor Sutiyoso both noted that SBY had left the
capital in their capable hands to ensure law and order. The
Home Affairs Minister issued instructions to all governors to
ensure order. Police called a Level One alert, putting
two-thirds of police officers on duty nationwide. Jakarta
police chief Firman Gani spoke firmly about stopping any
violence, and repeatedly discussed "shoot on sight"
procedures should chaos break out. Police comments drew
sharp criticism and concern from labor leaders, who offered
reassurances of orderly protests. Jakarta police announced
that the government had deployed over 21,000 security
personnel, including a reserve of 5,000 soldiers, to guard
the capital. By the morning
of May 1, Jakarta's main thoroughfares featured large numbers
of uniformed police and public order personnel. Numerous
plainclothes officers also mixed with the crowds and
onlookers.

DPR Caves In Before Sea of Protestors
--------------


6. (SBU) The 10,000 or more demonstrators at the DPR gates
achieved their desired political victory. Speaking via
megaphone to the sea of protestors before the parliament
building, Ribke Tjiptaning, chair of the DPR's Commission IX
that handles labor issues, reportedly announced to the
workers that the DPR "rejects the Government's plan to revise
the law," and would not take up discussion of any changes.
"We'll tear up any papers the Government sends to us," Ribke
told cheering workers. DPR Deputy Chairman Zaenal Ma'arif
reinforced this statement. Earlier in the day, DPR Chairman
Agung Laksono commented that the Government must rethink its
plans to amend the Manpower Act.

Yudhoyono Thanks Workers For Maintaining Order
-------------- -


7. (SBU) As protests drew to a close, Vice President Kalla
conveyed to reporters President Yudhoyono's appreciation to
the workers for conducting themselves in a peaceful manner.
Kalla added that he did not believe the DPR had formally
decided to reject any possible amendments, saying it would be
premature as these remained under study and the Government
had not decided on any recommended changes.

Another Large Protest Planned for May 3
--------------


8. (SBU) Indonesia's largest union confederation, SPSI,
plans its own demonstration in Jakarta May 3 and has called
for a similarly large turnout. The focus of the protest
action will be the DPR, according to one senior SPSI
official. SPSI was the leading union organizer behind the
April 5 protests, the largest in four years until today.
SPSI, the successor to the Suharto era union body, did not
join the other confederations on May 1 in part because it
rejects the socialist connotations of May Day.

Comment
--------------


9. (SBU) Unions turned out a respectable showing May 1,
surpassing the April 5 rallies in terms of numbers and
scoring a political victory at the Parliament. However, the
extensive media build up reinforced by the GOI's obsessive
security precautions ensured the nation's fixation on the

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union rallies, more so than the 30,000 plus demonstrators on
the streets of the capital. Some DPR members' preemptive
surrender to the union perspective will further complicate
Yudhoyono's efforts to amend the Manpower Act. With the
Government on the defensive and timid in the face of
protests, and some DPR leaders already siding with organized
labor, passing the labor law amendments -- the centerpiece of
the current investment package -- appears increasingly
difficult.
PASCOE