Wednesday, 16 February 2011


The problem of open unemployment in Indonesia could not yet be solved by government. In 2009-2010, the ministry of labor and Transmigration could only reduce 1.5 per cent of total unemployment in 2008-2009. Approaching year 2011, open employment stays at 9.25 millions. New program is arranged by the ministry of labor and transmigration in cooperation with the ministry of Communications and Transmigration Technology in spreading information on job opportunities. A new target for unemployment rate is set to be by seven to three percent until 2014”, said the minister of labor and Transmigration, Muhaimin Iskandar.

A new problem faced by the Ministry of labor and Transmigration is that more than 50 percent of work in Indonesia are elementary school graduates. And, the level of education of workers does not match the requirements of the available job opportunities. Muhaimin said that his party was establishing a social networking trough educational and non-governmental institutions. Starting from 2011, information on job opportunities will be spread more expansively by utilizing the television and educational institutions. There are three parties involved in the spreading of information on job opportunities, they are the industries, the educational community, and government the facilitator. ”the society must also be proactive by frequently accessing communications with the local labor agencies”, he explained.

A new research stated that Indonesia’s high economic growth rate is not closely related to social welfare. Particularly, if is measured by unemployment and poverty rates. This condition is evident in Indonesia, where high economic growth has a less co-relation with decline of unemployment and poverty rates.

The effectiveness of budget support for poverty reduction should be question since it is unable to reduce poverty and unemployment rates significantly. In 2009, the total budget allocated reaches Rp. 71 trillions to reduce a number of 1.51 millions (2009) to 31.02 millions (2010). It means that to reduce one poor person in 2009, a budget of Rp.47 millions is required, and frequently it is deemed irrational.

Researcher of Economic Research Center (P2E) of Indonesia Institute of Sciences (LIPI), Wijaya Adi, said that the government usually uses data on open unemployment to measure the co-relation between economic growth and labor absorption. While, in fact, such data does not reflect the actual welfare rate of the society. The fact is workers with low income and workers with workhours below standard are not classified as unemployment.

“Therefore, the Indonesia Institute of Sciences uses the term” under unemployment” for those who works for lees than 35 hours a week in order to describe welfare state”, he said. The Indonesia Institute of Sciences recorded that number of citizens that are put under the category of “under unemployment” constantly increases in the past five year. From 29.64 million people in 2005 to 32.8 millions in 2010. it is predicted that in 2011, the number of citizens put under the category of under unemployment will increase to 34.32 millions.

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