THE HIGH POTENTIAL OF BUSINESS OUTSOURCING IN INDONESIA

The Association of Indonesia Outsourcing Business Agencies [ABADI] reported that after the issuance of Regulation which restricted outsourcing business activities in 2012 as written in the Regulation of the Ministry of Manpower and Transmigration Number 19/2012 thousands of outsourcing agencies decided to change to other line of business. Closing of these outsourcing agencies troubled employer companies in seeking for operational partners.

Chairman of ABADI Wisnu Wibowo stated on Friday [4/7] that the Ministry of Manpower and Transmigration [Kemenakertrans] on that day issued Regulation on outsourcing which referred to Law No 13 year 2003 i.e. Permenakertrans No 19/2012 in which it was mentioned that permitted i.e. security, transportation, catering and mining operators.

Wisnu disclosed that in spite if the several undesirable things he was optimistic that outsourcing business would continued to grow. He mentioned that in 2014 the prospect of outsourcing business and turnover was estimated to be Rp 17.5 trillion whilst the potential of outsourcing business in the world was estimated at USD 970 billion or Rp 9,215 trillion in 2015.

If Indonesia could take just 1% of the world market, business circulation at home could ome to USD 970 billion or Rp 92 trillion. He estimated that demand was still high because outsourcing was efficient. From the above picture he was optimistic that outsourcing could open more employment opportunities in Indonesia especially with high demand for labor.

Wisnu stated that the process of evolution of outsourcing business in Indonesia had been fast growing in many professions from Finance to IT. Other plus points attributed to the Government was Indonesia’s 5^th position with benefited 105 million workers. If the potential was benefited at best, it could accumulate into enormous strength. “the high potential of workers at productive age would offer opportunities in employment service agencies” Wisnu said.

Meanwhile Iftida Yasar, Vice Secretary of the Indonesian Businesspeople Association [APINDO] stated that in developing employment opportunities there were challenges waiting ahead. He showed as an example Indonesia’s climate for business in 2012 was in 128^th position among 185 countries in the world, way below that of competing countries in Asean like Thailand at 18^th position, Vietnam at 99^th and Malaysia at 12^th.

The indicators of conducive climate for business in Indonesia was ease to start business, ease in permit application, electricity supply, ease in property registration, ease in obtaining credit, protection for investors, commitment to contract, and legal settlement for cases of bankruptcy. Other cases of educational level of Indonesia people 70% of which were only Junior High School educated.

According to Yasar, supposedly the Government fully supported activities which opened employment opportunities instead of protecting a small number of workers in the formal sector because nearly 90% of Indonesian workers were at UKM level. He reminded that life expectation for Indonesian women was 72 years and men 69 years. Under such circumstances the people should dedicate themselves to profession to be beneficial to the environment. (SS)  

Business New - July 11, 2014