Tuesday, 30 September 2014


Indonesia’s vast population was a potential factor in domestic industry. However as competence was not synchronous with industry need and productivity was low – was the week point of Indonesia’s Human Resources. The condition was admittedly Indonesia’s weakness in facing AEC 2015. Productivity of workface in Indonesia was notably low in Asia, even the increase minimum wages did not bring significant effect to increasing productivity.

Low productivity of workers was commonplace in nearly all industry sector, the footwear industry was no expectation. The Director General of Small-and-Medium industry [IKM] Euis saedah stated in Jakarta on Thursday [28/2] toward implementation of MEA 2015 National footwear industry was facing the big challenge of building skilled labor.

The Ministry also wished to see more Indonesia Shoes Industry Development [BPIPI] workshops in all parts of Indonesia. The Director General of IKM wished to see development of BPIPI branches in Jakarta, West Java, and even beyond Java. “The market demand for footwear products is constantly growing” Euis Said.

For that matter, footwear industry development must be spurred on by enhancing training. Beside human resources development, the Ministry would also step up technological capacity toward higher efficiency and competitiveness.

The same was set forth by the Secretary General of the Ministry of Industry Ansar Bukhari who said that to anticipate MEA 2015 the Ministry was making competent workers to be competitive in ASEAN. He admitted that the standard of qualification of industrial workers in Indonesia was low as indicate by their educational level: Junior High School level 60.77%, High School level 94.41%

Besides, Ansari said, productivity of Indonesian workers by GDP was low, i.e. USD 9,500 per worker per year, way below three ASEAN countries: Singapore, Malaysia and Thailand or below that of the Asean countries at USD 10,700 per worker per year. Pursuant to that matter the Ministry of Industry was anticipating problems, i.e. to establish community academy to meet demand in the industrial sector.

Meanwhile to quote BAPPENAS and USAID survey outcome in 2013 on shoe industry which absorb most workers it was unveiled that every shoemaker in Indonesia was only able to make 0,8 pair of shoes per day with minimum pay of USD 242 in 2013. For comparison, a shoe maker in Vietnam was only paid USD 140 per day but were able to make 1 pair of shoes per day. In China 1 shoemaker could make 1.1 pair of shoes per day at the salary of USD 235 per day. (SS)

Business News - September 3, 2014

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