Thursday, 5 February 2015


The working cabinet of President Joko Widodo/ Vice President Jusuf Kalla was now facing low employment data in spite of economic progress at home. Indonesia once had high employment data when the industrial sector grew significantly. At that time every 1% of economic growth absorbed around 300,000 – 400,000 workers.

Somehow the trend sloped down. The present calculation had it that every 1% economic growth was only able to accommodate around 200,000 – 250,000 of workers. The situation caused by investment in tertiary industry sector such as telecommunication was more dynamic compared to the primary and manufacturing sector.

Such was admitted by Hanif Dhakiri, the Ministry of Manpower. Hanif stated in Jakarta on Tuesday [9/12]. Employment Development Index [IPK] 2014 was posting downturn nationwide. This year IPK was only 55.59 down by 0,81% against last year at 56.31. Hanif stated that 26 provinces belonged to medium low category and 6 provinces belonged to low category. One province, North Kalimantan could not have their employment performance appraised.

The indicators used in IPK calculation were: population and workforce, training and competence, workers productivity, industrial relationship, labor planning, wages and workers’ welfare, social welfare and condition of working environment. The indicators of low index was training and competence, productivity, industrial relationship and condition of working environment.

Data of the Coordinating Board of Investment [BKPM] had it that investment realization over January- September 2014 came to Rp.342.7 trillion, an increase of 16.8% against same period last year. The composition was: realization of domestic investment Rp.114.4 trillion or up by 21%, Foreign Investment Rp.228.3 trillion with increase of 14.6%. The booming investment was in reverse with local absorption capacity. By Q III 2014 employment was only 960,336 people, down by 31.4% against the same period the previous year at nearly 1.4 million people.

And yet from 2010 to 2013 employment trend was in reverse with investment realization. In RPJMN Plan 2015 – 2019 there was lessened employment opportunity through 2011 – 2013 against 2007 – 2010. In 2013, as economic growth was at 5.9% there were downturn of number of workers nationwide although only 10,000 workers which led to increased joblessness level.

According to Hanif, the domestic labor sector was given more attention in making competent workers toward AEC 2015. All economic sectors needed skilled and trained works to be competitive.

Meanwhile Vice Chairman of KADIN Manpower Division v predicted employment by next year would increase by 30% in line with subsidy relocation from the consumptive to productive sector; thereby industrial activities would increase with positive impact on employment opportunities. Bebby said that employment would be enhanced in the infra structure sector. Employment would also be enhanced by foreign investment next year. (SS)

Business News - December 12, 2015

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