Toward execution of the ASEAN Economic Community 2015 many circles were
expecting the businessworld to grow and contribute the nation’s development.
Business players were creating employment opportunities whereby to meet
people’s expectation. By the time Indonesia was tormented by two big crisis in
1997/1998 and 2008/2009, business people work hand in and struggle shoulder to
shoulder with the Government to overcome crisis the result was visible today
where Indonesia’s economy had been able to grow by 6% on the average per year.
Many executives of other countries tried to learn from Indonesia on how
to maintain a stable and sustainable economic growth. As known, Indonesia’s
economic growth in 2012 was the highest next to China in the G 20 group. To
maintain positive economic growth, some pre conditions must be met which was
not easy, i.e. stable and social political climate, guaranteed security and
political certainty and stringent law enforcement. And favorable employment
climate.
One notable thing was that
Indonesia had great demographic dividend and productive workforce. The middle
class was growing with strong purchasing power and they had interest which
needed to be accommodated. They should be guide and directed to become hard and
resistant entrepreneurs not, experimental traders.
About high quality human resources, with good education, skill and
competence must obviously be well prepared. Word was out that KADIN was
expecting there was integrated understanding of national problem in highly
competitive human resources. This was necessary to anticipate global and
regional economic development and the impact on domestic affairs.
According to KADIN Indonesia, the name of the game in global and
regional economic development was integration. Meaning integrated policy and
sound coordination was needed in cracking problems especially in increasing
quality of Human Resources in term of education, health and working
opportunities. Integration was indispensable that Indonesia could be ready in
facing regional challenges especially MEA 2015.
So far Indonesia was regarded as not ready because of still being unable
to integrate domestic economic factors. Somehow the quality of Human Resources
must still be reformed in facing future challenges.
Not less urgent was to synchronize regulations of the central and
provincial Governments whereby to take action. If the Governments were
integrated, it would be easy for the businessworld to cooperate. In the end the
Government was expected to synergize with the businessworld in the process of
link and match in education and the need for workers in the labor market.
Manpower affairs had 3 aspects: employment opportunity, quality of
workers and industrial relationship. In case of working opportunity KADIN was
still disheartened by high unemployment figure. Although by percentage
unemployment figure was lessened, but the absolute figure was still high,
around 6.5 million people, of which more than half were young jobless people.
The high unemployment figure was not in account of limited employment
opportunity but rather due to mismatch between qualification of job seekers and
demand for workers in the industry; which was shown by growing number of
educated job seekers.
Ironically Indonesia was always running short of professional workers
who matched the need of the industry. This was because there was not enough
link and match between the educational sector and the labor market. Now
Indonesia was still running short of workers who were competent in their
respective fields because graduate of normal schools were less qualified and
had not met the quality standard of the industry.
To illustrate: in the textile and
garment industry of around 1.3 million workers, only 57%were competent the
remaining 43% still needed extra training. Under such circumstances Indonesia
was now stormed by foreign workers in the textile industry, especially at the
managerial level, while local workers were only posted as operators. The result
was mounting acts of hijacking of competent workers among companies.
The shortage of professional workers was mainly because there was no
standardization of competence and inadequate curriculum taught on schools. For
that matter it was necessary to have link and match between the educational
world and business world.
The Government and all stakeholders were expected to enhance the Public
Private Partnership [PPP] toward better quality in the educational sector. To
exercise the link an match principle between the educational world and business
world, the standard of competence set up by the organization must be included
in the school curriculum whereby to make professional and competent workers.
Today there were around 240 standard competence packages which were not
benefited by school. The result was that workers being trained were just at
operational level, not technicians or managers. The Government must take the
initiative to, and participate in, scheming up competence-based education as
well as financing them.
Infra structure problem was also highlighted by national businesspeople.
They believed that national economic growth was expected to exceed 7 percent of
target each year, if infra structure condition was adequate. Indonesia must
play catch up with believed to be attainable for example by executing the
Indonesia Economic Development and Expansion Masterplan [MP3EI].
The essential thing in the development of basic was upgrading of the
national logistics system to be more competitive. The National Single Window
system was put in effect; tax and customs service in harbors is upgraded. A
one-stop service must be developed in strategic locations.
Macro wise, Indonesia’s performance was rated as satisfactory, but
effort in the financial sector and banking was rated as neglecting good
infra-structure building was to obtain special financing. Many national
businesspeople expressed their grievance that because the fund which was
supposed to be allocated for infra-structure building were used for other purposes
like oil fuel subsidy which amounted to nearly Rp350 trillion.
It seemed reasonable that banks urged the Government to build specific
banks specializing in infra-structure financing needed by the industry
considering that infra structure projects were normally run on long term basis
like 10 years or more. The reason was that if banks only served short term loan
at high interest rate it would be difficult for debitors to build long term
infra structure.
So most of the entrepreneurs believed there should be special banks
serving infra-structure who were in a position to offer more affordable bank
interest as pioneers of low interest banks. In this case the Indonesian Chamber
of Commerce [KADIN] had prepared some strategic schemes to spur on
infrastructure building in Indonesia. Moreover the Government already stated
that the APBN budget was not strong enough to finance infra structure building,
so the solution was by involving foreign investors.
Lastly, the Government, through
the related institutions: financing regulators especially BI, national banks,
universities and all stakeholders should constantly strive to promoter small
business.
Development of small business the focused and systematic way was
necessary whereby they could grow into resolute national entrepreneurs in the
long struggle of today and of the next generation. Even if the Government had
to provide fund in certain amount for the development of UKM, such would be a
productive investment to produce tangible result for a high and sustainable
economic growth. (SS)
Business News - May 8, 2013
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