Jakarta, The PRAKARSA (Institute for Policy Research and Advocacy) – The industrial downstreaming agenda that is a priority agenda for the Prabowo-Gibran government is still rife with worker exploitation practices. Until now, the government has not seriously implemented social security and law enforcement efforts for companies that violate the fulfillment of workers' rights.
This was conveyed at a public discussion entitled "Downstreaming and Worker Protection" which took place on Wednesday (4/12/2024) in Jakarta organized by the Sahita Institute, KASBI, FPBI and KPR. The public discussion was also attended by the Deputy Minister of Manpower Immanuel Ebenezer Gerungan, S.Sos as the keynote speaker. Also present were stakeholders from business circles, labor unions, Ministries, NGOs and researchers related to the downstreaming issue.
Eka Afrina Djamhari, Research and Knowledge Manager The PRAKARSA present at the event to provide a specific response regarding social security for workers. Eka conveyed a promise regarding the benefits of downstreaming which would encourage economic growth and improve community welfare through the opening of employment opportunities. However, until now, this promise has not been realized in real terms. This was found in research PRAKARSA entitled Tracking Financing Footprints: Environmental and Social Impacts of the Nickel Industry in Indonesia
“There has been a lot of criticism, currently nickel downstreaming is purely profit-oriented, ignoring the rights of workers, local communities, and environmental impacts. A real example can be seen in the Morowali Industrial Area, Central Sulawesi (IMIP), where employment conditions are far from expectations. The non-transparent recruitment process, unclear labor transfers, and changing work contracts are the main issues. Workers are often forced to work overtime to get decent wages, even amidst the threat of wage cuts or dismissal. This situation certainly contributes greatly to the high risk of work accidents,” said Eka.
Eka also emphasized that even though there are regulations that promise social protection for workers, such as in the Universal Declaration of Human Rights and the Presidential Regulation on Social Security, in reality, participation in the Jamsosnaker program is still very low.
"Only 29,72% of the total workers are registered from the total population working in 2023. Of the total participants, 31,95% are inactive. The PPU segment has the highest number of inactive participants, namely 42,57%," added Eka
The large number of inactive participants is due to the fact that most companies do not comply with the obligation to pay or do not register their employees. This shows the weak enforcement of existing policies and the lack of awareness of the importance of social protection for workers.
Eka urged the government to immediately review various regulations that actually open loopholes for workers' rights violations, including the Job Creation Law and regulations on national strategic projects. For social security, strict supervision and sanctions for companies that do not comply with the rules must be implemented to ensure that the promise of downstreaming is not just rhetoric, but has a positive impact on all parties, especially workers who are the backbone of this industry.