Strikes and Protests Sweep Indonesia in Response to New Deregulatory Law

An Indonesian labor union calling for the rejection of the new labor law (Wikimedia Commons).

At least 1,100 people have been detained by the Indonesian police over protests against a new law removing  protections for workers and the environment.

Thursday, October 8, was the third day of protests and a country-wide workers’ strike. Tens of thousands of protesters filled the streets, some turning violent. The majority of protesters gathered in Indonesia’s capital, Jakarta, but the protests were spread throughout the archipelago. 

Protesters in Jakarta gathered and attempted to march towards the presidential palace, ignoring  coronavirus containment measures. Some allegedly threw rocks at the police, started fires, and carried Molotov cocktails and other weapons. Earlier demonstrations in other parts of the country had been relatively peaceful, but they became more violent as the week went on. 

Frustrated workers and students set fire to bus stops, a traffic police post, and a café. The police retaliated by using tear gas and water cannons against the protestors. At least six police officers have been hurt, and two students have been hospitalized with head injuries. Some protestors are taking a more pacifist approach by holding their hands up, approaching, and embracing police officers. 

However, the leaders of the national strike separated themselves from the rioters, saying that their movement was not associated with the protests. These organizers estimated that about 1 million people went on strike nationwide each day. 

Many believe that the new law, which is more than 1000 pages long and amends 79 laws, will hurt workers while uplifting the wealthy, who the protesters say were the donors who helped the president win the last election. Indonesian President Joko Widodo says that the deregulatory law will revitalize Indonesia’s economy and encourage foreign investment, all while quashing bureaucracy. 

The law limits severance pay from the previous maximum of 32 months pay to 19 months pay  and redirects control over minimum wage to regional governors. Furthermore, it cuts the required number of days off from two to one, and harms job security by encouraging temporary hires, rather than  permanent hires. Environmental regulations have also been slashed 

Indonesia has the biggest economy in Southeast Asia, but it has suffered this year due to restrictions arising from the COVID-19 pandemic. During the second quarter, the economy diminished by 5.3 percent, and an estimated six million people have become unemployed. The head of the government’s Investment Coordinating Board, Bahlil Lahadalia, says that these deregulatory measures will encourage more hiring and lower unemployment rates.