Word: indonesia
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...fighting a guerrilla war against the government. Now 3,000 government troops guard the site, but turmoil continues. Earlier this year, a bicyclist carried a pipe bomb to within a few hundred meters of the front gate of the gas field operation when the bomb detonated prematurely, killing him. "Indonesia is becoming the Nigeria of Asia," says Vriens...
...Even in the clothing manufacturing business?a bulwark of developing Asian economies?the country seems to be giving away any competitive advantage it once had by way of a cheap labor force. Minimum wages in Indonesia have grown rapidly?in Jakarta, by nearly 40% this year alone?and now are higher than in more developed Thailand, relative to each country's per capita income. Unions are now pushing for ill-conceived labor laws that call for employers to pay workers whenever they go on strike?effectively forcing manufacturers to underwrite crippling work stoppages at their own factories...
...what used to be the "Nike School," where the sneaker company ran a supplemental education program. They intend to stay there, says Ahmad Saukani, the 35-year-old vice chairman of the company union, until they get fair severance pay. The target of the workers ire is PT Doson Indonesia, the company that ran the factory as a supplier for Nike. Still, about 2,000 workers protested outside of Nike's Jakarta headquarters in August...
...Overall, Nike, which accounts for about 120,000 Indonesian jobs, is not reducing its business in Indonesia, even after the Bali attack, Helzer says. But the company has been gradually shifting production elsewhere. In 1998, Indonesia accounted for 34% of Nike's total footwear output; this year that share will be in the "high 20s," according to Helzer. Meanwhile, Vietnam has skyrocketed from zero in 1995 to about 15% of production and Thailand's share has increased to about 15%. China remains the heavyweight, accounting for nearly 40% of production this year. In Indonesia, "We didn't see a whole...
...Union leaders say increased labor activism isn't the reason Indonesia's clothing and shoe sectors are fading. Dita Indah Sari, chairperson of the Front Nasional Perjuangan Buruh Indonesia union says that a poor global economy, excess capacity in industries like textiles, and security concerns are causing companies to scale back. "If the government can't solve the political problems, don't look for a social group to blame," she says...