Some observers consider that Indonesia’s economic
growth at 6% - 6.5% not yet has an effect on real sector development.
Consequently, economic growth could not yet accelerate labor-intensive industry
sector. It means that high economic growth is not ideal in promoting labor
absorption. With a quite high growth in 2011 at 6.5%, number of additional
workers absorbed is only 1.5 million workers. While, in fact, government’s
target for last year is 1% economic growth to absorb 450,000 workers. And, with
6.5% growth, it could have absorbed 2.92 million workers. It shows that
economic growth quality is not yet optimal.
General Chairman of Indonesian Entrepreneurs
Association (Apindo), Sofjan Wanandi, on Thursday (12/6), stated that in the
past 10 years, Indonesia’s economic growth has been mainly accelerated by
non-labor-intensive industries. Consequently, the gap between the rich and the
poor and unemployment increase. While, many entrepreneurs did not want to enter
labor-intensive industries, maybe because of the law, or the profit is too
small. And, problem of legal certainly and labor regulation are complained by
labor-intensive industry operators in Indonesia. Besides unemployment,
alleviation of property and gap between the rich and the poor still become a
problem that must be fought by the government from economic growth realization.
Therefore, quality aspect of growth must be improved, Sofjan said.
Sofjan believed that the government should improve
growth quality. Therefore, there should be a stronger policy because the
Medium-Term Development Plan (RPJM) target is reduction of open unemployment by
5% - 6% by 2014. According to him, growth of labor-intensive sectors, like
agriculture and manufacturing, must be accelerated. He sees that growth of
these sectors is not yet optimal.
Government’s role is very important in promoting
growth of agriculture and manufacturing industry sectors. There must be more
policy and budget support to improve agricultural infrastructures so that
irrigation system will improve and farmers could work more optimally. And,
agro-industry sector must also be seriously improved. Conducive industrial policy,
adequate electricity and infrastructure for proper distribution are very
important to prevent de-industrialization which is becoming more evident.
Sofjan reminded the government to evaluate economic
growth quality, particularly its influence on creation of work opportunities
and alleviation of poverty. The government should also be more progressive in
directing fiscal policy to solve problem in the upstream sector which is the
cause of poverty originating from rural and agricultural areas. He stated
firmly that these are important points for improvement of direction of
development policy and fiscal policy now and in the future. Economic growth
having a rising trend should be maintained in the midst of global economic
uncertainly.
Sofjan explained that in the current national public policy, poverty
elimination is no longer considered as a residual target, but it has become an
explicit target of a development process. This change of paradigm has caused
achievement of economic growth at 6%, but the condition is not always better
than the one where economic growth rate is only at 4% or 5%; as poverty
alleviation and creation of work opportunities accompanying economic growth
will also become important aspects in quality assessment of economic growth.
The important thing is how the growth could co-relate with increase of work
opportunities and acceleration of real sector, he said.
Business News - December 12, 2012
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