Foreign investors may ‘relocate’

At least 10 companies are considering closing their businesses in Indonesia and relocating to other countries unless the government settles several labor issues that they claim hamper the investmentclimate, according to an influential business association.

Chairman of the Indonesian Employers’ Association (Apindo) Sofjan Wanandi said the foreign investors’ plan was apparently driven by legal uncertainties from labor issues.

He said Apindo had asked those businessmen to delay their moves pending the outcome of Apindo’s lobbying of relevant authorities to solve the problems within two months.

“Many other foreign investors will certainly follow suit if the 10 companies relocate to other countries. This will certainly have serious negative impacts on the foreign investment climate in the country and on unemployment,” Sofjan said at a seminar on job security in the outsourcing system on Tuesday.