Meet the Next Country That Might Explode into Protests Against Corporate Plunder and Slave Labor Working Conditions
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A Pew Research Poll released in 2013 noted that only 37% of Indonesians felt their economy was “doing well,” with the number one concern needing to be addressed was that of rising prices, ranked above economic disparity, unemployment and sovereign debt. Roughly 75% of Indonesians felt that the economic system “ generally favors the wealthy,” with 60% saying inequality had increased in recent years.
A Human Rights Watch researcher noted that with the “routine” trampling of rights for religious and ethnic minorities in Indonesia, along with brutal repression of peaceful protests, the imprisoning of political prisoners, along with torture and denial of medical care for prisoners, “ the country is by no means a bastion of tolerance.” A former Indonesian economic minister recently noted that “the outlook for Indonesia becoming a well-functioning democracy is fast deteriorating,” with a tiny elite controlling the country while most people “have few prospects for improving their lives.” A former Indonesian foreign minister suggested that the country was fast in need of “a second wave of democratic reforms,” as when economic conditions worsen, “we will have a reaction on the street” since there existed within the country, a “ dissatisfaction at a deeper level with the current state of democracy.” Even the Wall Street Journal noted that with the country’s continuous economic growth, “underneath lies a restlessness for real change that would affect the common person.”
But let’s not let facts get in the way of further praise; the IMF certainly doesn’t.
The Rising “Restlessness” from “Underneath”
The IMF has written in glowing terms of the success of Indonesia’s “structural reforms” which have led to “healthy” balance sheets for corporations and financial institutions. Growth forecasts remained above 6%, though more work could be done, noted the IMF: ending fuel subsidies, investing in infrastructure (meeting the demands of corporations), and to continue with “reforms” to labour laws, allowing for reduced wages, less benefits and protections for workers, and thus, attracting “ foreign investment.”
In April of 2013, the IMF warned that “emerging Asia” needed to be careful about asset bubbles – like those that helped plunge the U.S. economy into crisis – and recommended the countries of the region “ liberalize rigid labour and product markets,” thus allowing for cheaper labour in what is already a region for some of the cheapest labour on Earth.
Being the 12th largest exporter of textile products in the world, Indonesia is home to a significant sweatshop economy, marred by pervasive exploitation of labour. One Taiwanese-owned sweatshop employs nearly 10,000 people, mostly women, who work for 50 cents per hour making shoes for Nike, where the employees were verbally and physically abused. Indonesia is home to Nike’s third largest manufacturing base, following China and Vietnam, exploiting roughly 140,000 workers.
Indonesia’s ‘labour law’ – which was passed several years earlier – provided for slightly increased wages and severance pay in the event that a company decides to ‘downsize’ its workforce. Corporations have gotten around this law by hiring labour as ‘contract workers’ and firing them without benefits (what Indonesians call “outsourcing”). While corporations have been able to find legal loopholes – or simply ignore the law altogether – they have been facing increased pressure from labour unrest in recent years, and not merely in the textiles sector.
As the economy boomed in recent years, the labour force wanted a greater share of the benefits. Strikes had been increasing with demands for higher wages by mine workers, supermarket clerks, pilots and others who have “disrupted business operations – and could potentially deter foreign dollars.” The country had 53 strikes in the first seven months of 2010 alone, and they were continuing through subsequent years.