Indonesia: Thousands of Adidas workers strike, put up tents in front of factory

Indonesian employees of PT. Panarub Industry, which produce Adidas shoes, during a protest in Jakarta in 2008

Peaceful action of thousands of workers of Panarub Industry was attacked and dispersed by police forces of the city of Tangerang; dozens of workers suffered injuries

This afternoon around 16:30 (2 September 2010), thousands of workers of Panarub Industry who were demonstrating peacefully in front of the factory, were suddenly attacked and dispersed by police forces, using tear gas, firing warning shots and trampling down the demonstrators. As result, dozens of workers were injured, some were taken to the nearest clinic and others were evacuated to other places.

The leadership of SBGTS-GSBI Panarub Industry said that the police were acting brutally without issuing any warning or inviting first the workers to a dialogue. The police, from within the factory, suddenly opened the main gate and directly attacked, insulted and pushed the workers who were on strike. The police also ordered the workers who were inside the factory not to join the strikers.

Thousands of workers of Panarub Industry have been striking since 31  August 2010 to protest against the management who would only give five days of Ramadan holiday and the deduction of the religious holiday allowance.

Sari Idayani from the board of SBGTS-GSBI explained that the action is a protest against the management policy which is harmful to the interest of the workers. The workers demanded a raise and full payment of religious holiday allowance in accordance with the Minister Decree number 04/1994.  The other demand is that the company takes in charge of the payment of the tax on the religious holiday allowance. We know, Sari Idayani continued saying, that all citizen should pay tax, but the allowance is very small. The Panarub Industry produces shoes of international quality, Adidas; it would not be difficult for the company to assume that responsibility. We demand 6 days of holiday, because if they give the allowance only on 9 September and 5 days of holiday, it would be impossible for us to celebrate Lebaran with our family in the countryside. The other demands included the raising of daily food allowance from RP 5000 to RP 12000,  the right to form and be active in a union and the suspension of Mrs Lika, production manager, who treats workers arbitrarily.

On the 31 August 2010, the action carried out by thousands of workers, began at 05.30 in front of the factory, with the police forces watching them. Sari Idayani said that the action was the expression of spontaneous anger of thousands of workers when they saw on their pay slip tax deduction on the religious holiday allowance, while the allowance itself had not been paid.

After speeches delivered by members of the board of SBGTS-GSBI, and more workers joining in the action, the management offered to negotiate. The workers sent 5 persons representing their unions to negotiate. However nothing was achieved. Amin Mustolih (chairman of SBGTS) said that the company refused to satisfy any of the workers demands. They only wanted the workers to go back to work. Obviously we refused and SBGTS and SPN agreed to continue this action till the demands are met.

When the negotiation with the company failed to get positive result, so at 13:00 thousands of workers marched to the office of the mayor of Tangerang. But they could not meet the mayor. They were received by the head of labor service, who promised to go to the factory to solve the problem. At 17:00 the workers dispersed themselves and went home.

Action of thousands of workers continue

Wednesday, 1 September 2010, thousands of workers continue their strike in front of the factory. They were waiting for the head of labor service who promised to come to the factory. But he did not appear. Frustrated and angered by the head of labor service that deceived them, the workers marched to the office of the general director of Tax of Tangerang and from there they continued to the office of labor service of Tangerang. Part of the workers contingent remained in front of the factory.

Under pressure of thousands of workers who surrounded the office, the head of labor service was forced to receive representatives of the workers. In the first meeting, the head of labor service was only willing to write a letter making an appeal to the company, but the workers refused it. In the second meeting with different representatives of the workers, the head of labor service agreed to issue a directive number 560/4536-Disnaker/2010 which declare that THE COMPANY TAKES CHARGE OF THE INCOME TAX (PPH ARTICLE 21).

The Company refused the directive of the head of labor service of Tangerang and also refused to satisfy the workers demands

On Thursday, 2 September 2010, thousands of workers continued to strike in front of the factory, demanding the company to put into effect the directive of the head of labor service and satisfy all the other demands. But the company insisted in refusing to carry out the directive.

In the afternoon, since there was still no positive reaction on the part of the company, the workers decided to put up tents in front of the factory till their demands are met.

Before the workers began to put up tents, at 16:30 pm, police from within the factory opened the main gate and directly violently attacked the workers, using tear gas, insulting and trampling them down, and firing warning shots. Panic and chaos broke out, workers running away to save themselves. Dozens of workers were injured: some were taken to clinics close by and others were evacuated to places of safety. The workers with injury who have been identified were Turi Dahlia, one of the members of the boards of SBGTS and Ruri Aprimayasari.

Panarub Industry produces sport shoes Adidas and employs 11.000 workers; the majority of them are women.

It is obvious that Panarub Industry has violated Minister Decree number 04/1994 in term of religious holiday allowance, and insisted in rejecting the workers demands. Besides, the company responded to the action of the workers by calling and using police forces and paying hooligans to attack the workers. We are against the interference of police forces in labor issues and demand the company to respond to workers grievances peacefully.

We, the Central Executive Board of GSBI, are requesting solidarity actions and support for the workers of Panarub Industry in fighting for the satisfaction of their just demands. We also request our friends and fraternal organizations to condemn the act of violence carried out by the police forces of the city of Tangerang.

Letters of support can be sent to

PTP.SBGTS-GSBI PT Panarub Industry

JL. Moch.Toha KM 1 Gerendeng Kota Tangerang

Email: and Amin Mustolih

Phone:0858-80112306 (Amin Mustolih, chairman of PTP.SBGTS-GSBI PT. Panarub Industry)

Phone:0812-19599778 (Sari Idayani, member of Board PTP.SBGTS-GSBI PT. Panarub Industry)

Protest letters can be sent to

Mr. Hendrik Sasmita (Chief Director of PT. Panarub Industry)

JL Raya Moch.Taho KM1 Gerendeng Kota Tangerang-Banten 15112


Fax: 021-5224319/5604668/5520046

Email: Hendrik Panarub and Budiarto,


JL. Raya Daan Mogot, Kota Tangerang , Banten

Phone: 021-5523160/5523003


JL. Jend. Sudirman Kav.25 Plaza DM Lt.10 Jakarta

Email: Harry Nurmansyah: or Adelina Simanjuntak: and William Anderson:

Contact person: Rudi HB Daman: General Chairman of DPP GSBI (cell phone:0818-08974078), office: 021-4223824

From ILPS Indonesia

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