1 March 2009, Indonesia inked ASEAN-Australia-New Zealand Free Trade Agreement (AANZ-FTA) in Bangkok – Thailand, together with all members of ASEAN and Australia New Zealand counterpart. Binamandiri felt surprised that Indonesia willing to ink the FTA, as many aspects has not yet completely agreed.
AANZ FTA had been in discussion since last year among Ministers of Trade on those countries. The idea of AANZ FTA is to increase trades among countries by lowering the import tax for specific items, for Indonesia is to receive beef and milk from New Zealand while Indonesia can export its textile product. But that's not all, some countries like Indonesia wanted similar clause such FTA between China and New Zealand which inked directly by Helen Clark and Hu Jin Tao, where FTA with China included a ‘temporary employment entry’ clause. This was part of the agreement and specified 200 Chinese doctors, 200 Chinese chefs, 150 Mandarin teaching aides, 150 martial arts coaches and 100 tour guides. In addition a maximum of 1,000 ‘skilled Chinese workers’ were to be granted temporary employment for up to three years. It was a good FTA for Chinese.
Indonesia wanted similar deal in the FTA unfortunately New Zealand was not ready to repeat the China deal, because recession was looming and the migrant job issue was becoming sensitive in New Zealand. It was in Indonesia New headlines last November 2008 saying the New Zealand work offer was ‘peanuts’. A list of jobs was published. This included 100 semi-skilled nurses, 100 oil and gas welders, 20 language teaching assistants and 20 halal butchers. The work visas would be for three years and expanded annually. Unfortunately, said in the paper, it was rejected by New Zealand side.
Binamandiri as one of Indonesia Manpower Company who engages with New Zealand market, taking big concern for the AANZ-FTA, and seeking further information, hoping that FTA coulde be successly inked by both parties.
Binamandiri talked with lead negotiator in New Zealand side, Ms. Vangelis Vitalis, who had been very kind and pleasant to brief about the FTA and she claimed that New Zealand never offered any job positions to Indonesia negotiator and probably it was just a wishlist. She suggested that Binamandiri should talk Mr. Guntur Witcaksono who is lead negotiator for Indonesia side.
Last January 2009, Binamandiri had a chance to talk with Mr. Guntur Witcaksono, Head of International Cooperation in Department of Manpower and Transmigration. He explained comprehensively, that the job lists came from Presiden SBY when Helen Clark visited him. The offer then became wish list by Indonesia Ministry Trade office and put on Labor Agreement official proposed by Indonesia Government, and it was his job to make sure the Labor Agreement agreed by New Zealand negotiator.
Unfortunately it was deadlock between Mr. Guntur Witjaksono and NZIS (New Zealand Immigration Services), which from Mr. Guntur information, NZIS cannot approve and secure any job positions for Indonesia, and it is domain policy of NZ-DOL (Department of Labor).
It was quite strange for such information given by New Zealand side, as NZIS is part of NZ-DOL.
Mr. Guntur said that Labor aggreement offered by New Zealand delegation was normatif agreement to ratify ILO ordinance which emphasize no child labor. Although Indonesia already ratifies ILO Ordinance, he afraid the agreement can be used to counter FTA Agreement when Indonesia exports its textile as there are still many child labor in Indonesia although not officially work.
On his last statement, The master FTA cannot be signed unless the labor aggrement is inked first.
Unfortunately it was different story on 1st March 2009, the FTA was inked by all participant countries, and only Indonesia-New Zealand Labor agreement was excluded.
Thailand, Vietnam and Philipines inked the labor agreement as proposed by New Zealand, and their people now can enjoy Working Holiday Visa Scheme for 100 people each year. The requirements for Working Holiday Visa is very simple, aged 25-35, University graduate, and has 50 million rupiah on their account. They can work for a year in New Zealand in all field of jobs. Special for Vietnam and Phillipines, they gained some ‘temporary employment entry’ positions – though far fewer than the China FTA.
Indonesia gets NOTHING in terms of Employments, No Working Holiday Visa and especially No Temporary Employment Entry.
Binamandiri spoke with Steve Jones, Head of Visa Officer New Zealand embassy in Jakarta on 3rd of March 2009 after the FTA. He explained that Indonesia Labor Agreement was actually had to be signed prior to Master FTA, but it was about politic.
New Zealand is prepared to talk about this issue as something outside the FTA though only if the Indonesia initiates discussions and no limit of time for the discussion. The Indonesia Embassy thinks there’s an New Zealand team in Jakarta doing this right now - MFAT (Minister of Foreign Affairs and Trade) says that’s not so.
Well, It is election year now in Indonesia, so it is unlikely Indonesia will open the talk with New Zealand about the Labor Agreement.
Once again, we lost our opportunity for employment, while other countries gained it and New Zealand received big advantage on low import tax.
