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Indonesia has a relatively open foreign investment regime and looks to foreign investment to help the country out of the current economic crisis It has established a niche for low-cost manufacturing which would be beneficial for Lincoln The new government has been transforming Indonesia into a country with one of the most liberal policy and regulatory frameworks for investments in Southeast Asia httpwwwus-aseanorgIndonesiabusinessguideforeigndirectinvestmentasp However Indonesia is characterized by the instability and inefficiency of democratic institutions and deep-settled corruption that may have a great impact on investing in the country Here is an analysis of fit of four major elements of Lincolns Management Control System to Indonesias business climate Flexible Work Practices The Indonesian law Law No11951 on the Working Period and Break Times states that workers are not allowed to work more than seven hours per day or 40 hours per week with one 30-minute rest period for each 4 hours of work The law also requires one day of rest weekly The daily overtime rate is 1-12 times the normal hourly rate for the first hour and twice the hourly rate for additional overtime Employer violations of legal requirements are fairly common and often result in strikes and employee protests wwweuroparleuinthearingssc1bsoclausedoc5enhtm Also there is an extreme proliferation of labor unions at present there are at least 64 labor unions in the forms of federations or confederations and at the company-level Workers are becoming more and more open in expressing their interests which is causing an increase in the number of strikes Manpower Ministrys official data listed 177 industrial labor strikes in 1997 and 70 of this occurred in Jakarta httpwwwsweatshops-retailorgNRF20Websiteindonesiahtm Lincoln Way is characterized as highly flexible that is the management has the authority to transfer workers and to switch between overtime and short time as required and to assign specific parts to individual workers It is also against unionism because it affects production and defeats its open door policy The Indonesian laws
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