LABOR ATTACHE SHOULD BE MARKETING INTELLIGENCE

The ministry of Labor reminded the urgency to increase the number of staff of Labor Attache in Indonesian Embassies abroad. Beside protecting TKI the Labor Attache should observe any available job opportunity abroad and for that matter they should play the role of Marketing Intelligence in collaboration with consular, economic and diplomatic functions in the embassy.

The Ministry of Labor in Jakarta on Wednesday (7/10) had asked all Labor Attaches in Indonesian Embassies abroad to seek for employment opportunities for Indonesian migrant workers abroad especially of the sector. According to Hanif, Labor Attaches should enhance networking abroad to meet the objective.

Hanif stated that today the Ministry of Foreign Affairs of RI had Labor Attaches in 13 countries, i.e. in Hong Kong, Malaysia, Singapore, South Korea, Brunei Darussalam, Saudi Arabia (Ryadh and Jeddah), Kuwait, Qatar, Uni Arab Emirates, Taiwan, Syria and Jordania. Based on data of the Board of TKI Protection the number of TKI sent abroad numbers 429,872 people consisting of normal TKI 247,610 (58%) and informal TKI 182,262 (42%).

Beside Marketing Intelligence, the Role of Labor Attaches was to protect TKI, manage TKI database, monitoring the where about of TKI, evaluate performance of TKI placement agencies, avocation assistance for TKI, legalizing employment agreement, and training TKI being placed abroad.

In view of the importance of their role, Hanif had asked that the status of Labor Attaches to level up with diplomat that they could perform their task more effectively. Hanif stated that of 13 Labor Attaches in 12 countries, only 4 Labor Attaches had the status of diplomat while the rest only had the status of diplomat while the rest only had the status of technical staff. The consequences was that not all TKI problems could be overcome.

Hanif stated that the would manage and remap TKI problems from upstream to downstream and improve placement system.

Today the Labor Attache of diplomatic status were tose stationed in Malaysia, Saudi Arabia, Kuwait ami Uni Arab Emirates the rest were technical staff in Labor Affairs.

Hanif reminded that to manage placement and protection system of TKI abroad, all stakeholders must collaborate to solve TKI problem. The Minister admitted that labor problem was wide and diversed, including therein TKI problem. Therefore collaboration was necessary among stakeholders.

Betterment of TKI management included upgrading of TKI quality of protection, improvement in the quality of TKI placement agencies (PPTKS), betterment of Government’s role in controlling and development of Government’s role in controlling and developing placement agencies, procurement of infra structure for TKI complaints by on line and management of TKI insurance. (SS)

Business New - October 9, 2015

SOLUTIONS TO OVERCOME ECONOMIC DOWNTURN, GOVERNMENT EXPEDITES THE DISTRIBUTION OF MICRO CREDIT

As one of the solutions during the current economic downturn, the government seeks to further expedite the distribution of Micro Business Credit (KUR). In the Cabinet Meeting on Economics, it was decided that for small and medium enterprises, the access will be made easier to obtain KUR, either for individual business or specific business entity.

After official opening the Sriwijaya Exhibition III at Plasa Pameran Industry, the Ministry of Industry, on Tuesday (October 6), Ministry of Industry Saleh Husin said that one of the results of the Meeting on Monday (October 5) is that ministers related to economics will cooperate with banks, both the ones incorporated under the State-Owned Banks Association (Himbara), or private banks, he said, accompanied by Director general of Small and Medium Industries (SMI) of the Ministry of Industry, Euis Saedah.

“In addition to expending access of KUR recipient, one of the subjects discussed is how to make prospective Indonesian Migrant Workers (TKI) before they leave to be equipped with some kind of capital. About the technicalities, such as what will be done by the executing banks, the migrant workers will be facilitated so that before they depart to the country of placement, they can get some of credit, in the form of KUR.

To that end, when attending training program in Indonesia, they will be helped to open an account, so that later in the placement country, they can transact using the facilities mobile banking facilities. In fact, during this time it is difficult for them to open an account in the country where they are stationed, as it is bound by the “not your customers” rule”, she said.

Currently, the government seeks to improve the distribution of KUR, given that until 30 September 2015, the distribution has just reached about 13% of portfolio target of IDR 30 trillion. In 2016 the government will allocate approximately IDR 90 trillion for the distribution of KUR with an interest rate of only 9 percent. The government, as stated by President Joko Wododo, is committed to continue to improve the allocation of KUR, so that entrepreneurs engaged in micro, small, and medium businesses will have competitiveness.

According to the President, the strengthening and protection of SMEs becomes an important thing to do at this time, considering that it has the potential to be one of the drivers of economy in the society. For that, SMEs need to have easy access to capital to expand its business. Earlier, the President also asked all ministers to make a breakthrough to increase KUR distribution this year. The President also requested the expansion of the sector that can access KUR, so that trading business can use it, KUR restrictions on production business during this time are considered to be one of the obstacles in its distribution.

Continuously Creating

On the occasion, Minister of Industry asked the national creative industries, especially those located in South Sumatra, to continue to be creative, to invent new products, and to improve shortcomings to improve quality, so it will be able to compete with similar products from other countries.

Meanwhile, Director General of SMI, Euis Saedah, said that it has made a strategic step in the development of creative industries which she calls the “four steps plus one”, i.e. strengthening of skills or competence of craftsmen (human resources), facilitating production techniques by optimizing equipment, strengthening the existence by optimizing equipment, strengthening the existence of standards and protecting their works with Intellectual Property Rights. While, the only addition is market strengthening in the form of exhibitions in various place, especially at Plasa Pameran Industri.

“Through the Exhibition, it is expected to provide motivation to participants or artisans in South Sumatra to become entrepreneurs who are strong, professional, creative and innovative so as to encourage the growth rate, strengthening, and improving the global competitiveness that we seek,” she said. the Exhibition, which was held from 6 to 9 October 2015, is followed by 46 SMI artisan assisted by the Department of Industry and trade of South Sumatra Province that displays superior products, among others, songket, wood crafts, rattan, wicker, ceramics, jumputan, as well as typical food of South Sumatra, like pempek and pindang with fish crackers. (E)

Business News - October 9, 2015

TO OVERCOME ECONOMIC DOWNTURN, GOEVRNEMNT ENCOURAGES LABOR-INTENSIVE INDUSTRIES

The Government continues to spur the footwear industry which is able to absorb massive labor force. Industrial development is done in order to boost exports and market share of domestic shoe products in the global market. The Ministry of Industry recorded that foreign exchange generated by the footwear industry is worth USD 4.11 billion or 2.33% of total national exports in 2014. In terms of employment opportunities, this industry contributed job opportunities for 643 thousand people which is equivalent to 4.21% of the workforce in the manufacturing industry.

In addition to footwear, the government also spurs other labor-intensive industries, i.e. textiles and food & beverage industries. “This proves that the government wants labor-intensive industries that the government wants labor-intensive industries that employ a workforce in large numbers to be continuously growing,” said Industry Minister Saleh Husin while attending the launch of “Labor-Intensive Investment for the Absorption of Indonesian Workers” program in Balaraja, Banten, on Monday (October 5).

The program held by the Investment Coordinating Board (BKPM) was conducted at PT Adis Dimension Footwear plant and was attended by President Joko Widodo. On that occasion, the President affirmed his optimism that the Indonesian economy will continue to improve in line with the realization of domestic and foreign investment, as well the launch of economic policy stimulus package. “There are many opportunities in our country that can be turned into investment that creates jobs,” said President Jokowi.

Keep Realizing  Investments

The market share of Indonesian footwear products in the world market was 2.85% in 2014 and was ranked 6th after China, Italy, Vietnam, Germany and Belgium. This shows that the footwear industry likely to continue to increase exports. Head of BKPM, Franky Sibarani, said that the government would like to communicate to the public and investors that when there is rampant news about layoffs, there are many labor-intensive companies who continue to implement realization of investment projects and absorb workers.

There are 16 companies that consist of 11 labor-intensive Foreign Investment (PMA) companies and 5 domestic investment (PMDN) companies in West Java and Central Java. Labor absorption reached at least 121,285 people in 5 years (2015-2019). The total value of investment plan is worth IDR 18.9 trillion and total realized investment worth IDR 11.4 trillion (until September 2015) with a total estimated value of exports amounted to USD 1.3 billion.

Companies engaged in the leather industry, leather goods and shoes, are, among others PT Pou Yuen Indonesia, Chang Shin Reksa Jaya, Adis Dinamika Sentosa, Feng Tay Indonesia Enterprises, Parkland World Indonesia, Selalu Cinta Indonesia, and Seng Dam Jaya Abadi. While those engaged in the textile industry are Sri Rejeki Isman, Jaya Perkasa Textile, Rayon Utama Makmur, Nesia Pan Pacific Clothing, Eco Smart Garment Indonesia, Delta Merlin, Dunia Textile, Delta Merlin Textile, Apparel One Indonesia and Jaya Perkasa Textile. For the food and beverage industries, namely PT Kaldu Sari Nabati Indonesia. “Labor-intensive industry operators still need new workers, such as a garment factory in Boyolali. They are in shortage of 12 thousand employees,” said Industry Minister Saleh Husin.

Ministry of Industry also continues Machinery/Equipment Restructuring Program for Textile & textile product Industry, footwear and leather tanning industries. This step was taken given the positive response from the industry and other stakeholders. “The program is in the framework of accelerating the improvement of industrial performance and labor absorption,” said Director general of Chemical, Textile and Miscellaneous Industries at the Ministry of Industries at the Ministry of Industry, Harjanto. Availability of raw materials is also facilitated by sitting up a logistics base for cotton, leather raw material centers and encouraging investment in dyestuffs and auxiliary material industries. (E)

Business News - October 9, 2015

GOVERNMENT TO BROADEN SCOPE OF PEOPLE’S CREDIT DISTRIBUTION

The Financial Service Authority (OJK) supported Government’s plan to broaden scope of distribution of people’s Credit (KUR) to new business lines, start up business, including various creative industry sector and technology-based industries.

Naturally not just the scope would be broadened but number of banks would be increased as well, hopefully to include Provincial Development Bank (BPD)” this was stated by the Chairman of the Board of Commissioners of OJK Muliaman D, Hadadafter attending limited meeting on KUR at the President office on Monday.

However Muliaman remained that the targeting be done selectively with reference to recipient’s performance of last year.

OJK also insisted that pipelining of KUR not to involve big Government’s banks but also to include other financial institutions.

Not only BPR, but other financial institutions like financing agencies, cooperatives, etc be authorized to distribute KUR. The expansion was not only by area but also on the basis of linkage principle to expand absorption while still stressing on prudence.

With expansion of industrial areas, and change in distribution mode, the KUR program was expected to be maximized this year. “next year, as the Government planned to increase the distribution mode by quantity, with foundation which was more accommodative, the absorption could be expected to by higher next year” Muliaman remarked.

Sometime ago at the limited meeting on People’s Business Credit President Jokowi insisted on making breakthrough in accelerating KUR because according to data realization of credit was still low. President Jokowi expected in the next 3 months: October, November, December there would be significant breakthrough. “Small business must be protected and strengthened to strengthen their competitiveness.”

President Jokowi said that by 2015. The Government had around Rp.30 trillion for KUR to be distributed to small business, with credit interest reduced from 22% to 12%. (SS)

Business News - October 9, 2016