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Labour unions divided by Indonesia’s presidential elections

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In Brief

This year was the first time in decades that May Day was a public holiday in Indonesia, but it was the presidential elections rather than wages and working conditions that stole the spotlight.

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In Bung Karno Stadium, the charismatic leader of the Federation of Indonesian Metalworkers’ Unions (FSPMI) and president of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, nailed his political colours to the mast.

After months of speculation, Iqbal declared his support for Prabowo Subianto in the presidential elections. His position is clear and uncompromising: one media report even quoted him as saying that getting close to Jokowi in the lead-up to the presidential elections would be like approaching the angel of death.

Iqbal’s support is contingent on Prabowo signing a political contract that includes meeting 10 demands, several of which relate to classic labour issues such as wage levels, pensions, healthcare and outsourcing. Other demands deal with broader issues affecting workers including social security, housing and education. These demands reflect the policy-driven approach for which Iqbal is famous, and which has underpinned FSPMI’s success. Word has it that the political contract is also likely to include a ministerial position for Iqbal in the case of a Prabowo win — and not just any ministry but the Ministry for Manpower and Transmigration, where he would have significant influence over labour policy.

The question on everybody’s lips is, of course, ‘Why Prabowo?’ Activists in the human rights movement are dismayed that such a key figure in the labour movement, would line up behind Prabowo. Leaders of Indonesia’s other main union confederations have also questioned Iqbal’s judgement. Mudhofir, the leader of The Confederation of Indonesian Prosperous Trade Unions (KSBSI), has come out strongly against Prabowo — telling the press that his union doesn’t want to be led by a president responsible for human rights violations. KSBSI officially declared for Jokowi in late March. It’s no surprise, given his PDI-P links, Andi Gani, the leader of a major faction within the legacy confederation, KSPSI, also supports Jokowi as the PDI-P candidate.

Defending his position, Iqbal — who supported Jokowi’s push for governor — explained that a political contract had been offered to several likely presidential contenders, including Jokowi, but only Prabowo had expressed any real interest. Prabowo also accepted invitations to address union members on several occasions where Jokowi was also invited to speak, but chose not to attend. Jokowi may spend a lot of time with the city’s poor, but he hasn’t exactly been a champion of formal sector labour. In the 2013 wage round, Jokowi had signed off on an increase of nearly 50 per cent. But this year the minimum wage increased just 10 per cent to IDR 2.441 million (US$213) per month. Not only did 10 per cent amount to very little in a year when inflation sat at over 8 per cent, but Jokowi’s decision meant that Jakarta wages dropped below that of the satellite industrial areas of Karawang, Bekasi District and Bekasi City. Jokowi is also on record — using language that harks back to the New Order — as urging workers to discuss their problems with their bosses rather demonstrating for their labour rights.

Aside from potentially signing the 10-point political contract and allocating a ministerial post for Iqbal, what is Prabowo offering to labour? Prabowo’s sales pitch to workers on May Day deployed nationalist and populist rhetoric. He condemned poverty and made a plug for free education and social mobility after a long rant about Indonesia’s wealth and its social and economic inequality. He concluded his address to the unions by saying that he hoped within days to issue a joint declaration with union leaders signalling his commitment to workers, farmers, fishers, teachers and small traders, as a ‘soldier of the Indonesian people’ (prajurit rakyat Indonesia).

What such a commitment would translate into if he wins office is an open question. Iqbal’s influence as minister would depend greatly on his relationship with Prabowo, and in turn Prabowo’s capacity to make his party and coalition partners fall in line. The realpolitik of government will be a huge challenge to Iqbal’s reformist reputation even if Prabowo surprises observers and delivers on his promises. Iqbal’s gambit will also likely prove to be divisive within the union as many members may choose to ignore their national leader and vote for Jokowi. Indeed, some observers have concluded that Iqbal’s backing of Prabowo has more to do with ministerial ambitions than with policy. There will be intense competition within PDI-P for the position of Minister for Manpower and Transmigration. The immensely popular PDI-P legislator Rieke Diah Pitaloka, who is renowned for her dedication to labour causes, is a front-runner for the position should Jokowi win. Andi Gani of KSPSI and the well-known activist Teten Masduki are also rumoured to be contending for the slot.

The political manoeuvring around May Day this year revealed the deep divisions in the labour movement. The stakes for Iqbal are particularly high. He is not one for playing it safe, a tactic that to date has paid off, making the labour movement both more effective and more visible on the national stage. No matter how things turn out in August, however, he is risking the cache he’s developed as the leading figure in the reconstruction of the Indonesian labour movement. If Prabowo loses, Iqbal must explain to his supporters why he made the strategic error of supporting a candidate that consistently polled behind Jokowi. If Prabowo wins, he will have to fight hard to make sure that Prabowo keeps his promises, some of which will surely be broken — providing fodder to those who disagreed with the endorsement.

For now, Iqbal is walking a tightrope and those who care about the Indonesian labour movement are holding their breath.

Teri Caraway is a comparative political scientist at the University of Minnesota, who has a special interest in Indonesian labour.

Michele Ford is ARC Future Fellow and Director of the Sydney Southeast Asia Centre at the University of Sydney, where she researches Southeast Asian labour movements and trade union aid.

A longer version of this article was first published here on New Mandala.

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