Tuesday, 2 July 2013

WORKER COMPETENCY NECESSARY TO INCREASE COMPETITIVENESS



The government is willing to increase competency of Indonesian workers in the frameworks of increasing competitiveness in the global work market. Large number of Indonesian population is a production factors potency in industrial sector. On the other hand, incompatibility of competency with industrial demand and relatively low productivity are the weaknesses of human resources of Indonesian industries. In this case, the National Professional Certification Board (BNSP) has a very important role in the framework of creasing competency of Indonesian workers.

Secretary General of Industry Ministry, Ansari Bukhari, Wednesday (12/26), reminded that in year 2015 Indonesia will join the ASEAN Economic Society where there will be free flow of goods and services. Ansari said that unemployment rate in 2005 reaches 10.9 million people, down to 7.7 million in 2011. In 2011 - 2012, economic activities or formal sector has created 2.67 million workers, therefore unemployment rate decreases 1.54 million people. Number of formal workers reaches 38.89%, while informal workers 60.14%.

Even though it is declining, absolute number of unemployment is quite high. This condition is due to, among other thing, gap between number & competency of graduates and employment demand. Therefore, development of competency-based education according to industrial demand must be prioritized. He admitted that productivity of Indonesian workers is relatively low. This is one of the crucial issues toward 2025 where Indonesia is predicted to become the 10th biggest economic power in the world.

Meanwhile, concerning high absolute number of unemployment, Ansari said that development of labor-intensive industries will continue to become government’s priority for 2013. The reason is that labor-intensive industries can absorb large number of workers and contribute one-third to industrial growth in Indonesia. Currently, from 108 million workers working in the processing industries, around 14.6 million work in labor-intensive industries, such as textile and textile products (TPT), footwear, furniture, food and beverages, and small and medium industries. Ansari took an examples of investment of footwear industry at USD 10 million which is able to absorb workers of up to 10,000 people.

Therefore, the government will continue developing labor-industries. To protect existence and development of labor-intensive industries, the Industry Ministry has attempted so that labor-intensive industries could receive postponement of increase of Provincial Minimum Wage (UMP) of 2013. Even, his party has proposed Income Corporate Tax (Income Tax Article 21) incentive and Corporate Tax (Income Tax Article 25) incentive for labor-intensive industries. Income Tax Article 21 incentive which is normally paid by corporations is expected to be reduced in accordance with non-taxable income.

Ansari reminded again that the challenge that must be faced by the industries in the future are human resource quality which has so far been considerate not in accordance with industrial demand. In additional to that, productivity of local workers is relatively low so it affects company’s productivity. But, worker productivity cannot be perceived from the worker side only. Worker productivity is affected by at the least three factors, namely skill, technology, and society’s purchasing power.

Unskilled workers are mainly due to the education system which is unable to produce many high skilled graduates. The fact is that quality education up to university level is very expensive so it is unaffordable to many people. (E)

Business News - January, 02,2013

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