MANPOWER AND EMPLOYMENT
The development of manpower and employment in
Repelita VI is directed towards the formation of independent professionals,
high vocational as well as productive values, expansion of job opportunity,
decrease in unemployment and development of human resources.
The development of manpower and employment comprises all efforts
directed towards the enhancement, establishment as well as development of
manpower with quality, productivity, efficiency, effectivity and
entrepreneurial spirit capable of filling, creating and expanding job
opportunity as well as business activity. The availability of manpower as part
of the policy in realizing national manpower plan has to support the
equitability in job opportunity among regions by considering the potential
found in each region.
The development of manpower and employment is necessary to
manage and develop the improvement of labor requirements and manpower
protection in the system of the Pancasila industrial relations directed towards
the enhancement of worker’s welfare. However, this effort must be supported
by the labor organization and manpower cooperatives led and managed by
the workers itself, both efficiently and effectively to achieve the member
The problem of productive job opportunity expansion is still one of the
big challenges faced by Indonesia’s development. During the First Long-
Term Development Program (PJP I), the growth of work force was followed
by the expansion of job opportunity in various development sectors at
equitable proportion. In 1971, the number of work force in Indonesia
amounted to 41.3 million persons, while in 1990 it increased to 73.9 million,
making an addition of 32.6 million.
During the same period, the number of active workers also grew from
37.6 million in 1971 to 70.6 million in 1990. Thus the addition of work force
could be absorbed in various development sectors.
The structural changes in the field of manpower are reflected by the
creation of a large equitable job opportunity. During PJP I, the flow of
manpower in Indonesia moved from the agricultural production sector to the
The structural changes of manpower are also shown the improvement
of Indonesian manpower capability to produce goods and render services,
which in turn will increase the productivity.
The improvement of manpower productivity is closely related with the
enhancement efforts of skills and training where knowledge and technology
are being expanded. During the period of 1971-1990, based on the 1983
constant price, the capability of manpower in producing goods and services
per manpower increased from Rp 967 thousand in 1971 to Rp 1,608
thousand in 1990. With the policies and integrated steps done in the field of
manpower, job opportunity expanded in various fields and sectors of
development in PJP I, while the number and quality improved.
The policy of job opportunity expansion is directed towards
accommodating a great part of the additional work force, with its
productivity increasing in various sectors and regions.
The policy and steps of job opportunity expansion taken in the
manpower programs cover the program of manpower skills and training,
program of manpower distribution and utilization. In the meantime, the
employed manpower is arranged through the program of industrial relation
management and manpower protection.
MANPOWER DISTRIBUTION AND UTILIZATION
The program of manpower distribution and utilization is designed to
create job opportunity in increasing number and quality.
The policy in this program is carried out through the activities of the
Second-Level Regional Development Aid scheme, reforestation and
regreening, the utilization of unemployed and semi-unemployed manpower
(PTKSPS), the enhancement of labor market information and distribution of
manpower through the placement mechanism and utilization of Educated
Voluntary Workers (TKST). The Second-Level Regional Development Aid
scheme known as District INPRES (Project aid by virtue of Presidential
Instruction) is one of the programs directed towards supporting the expansion
of productive job opportunity. The objective of this program is, among
others, to establish general facilities by considering the potential of natural
resources and development requirement in each region.
Various activities taken through the program covering the construction
of markets, terminals, roads, irrigation water-ways, bridges etc. by using both
manpower and material found in the respective regions. In fiscal year
1993/94, the District INPRES successfully created job opportunity for a total
of 684.4 thousand people, increasing almost 50% from that of fiscal year
1992/93 which amounted to 460.0 thousand people.
The programs of reforestation and regreening are design to use
conservation land in overcoming the flood and erosion occurred during rainy
season and drought during the dry season. The program is carried out through
the preservation of forest, land and water. It is also directed towards
absorbing the manpower as many as possible. In 1993/94, the programs of
reforestation regreening succeeded in creating job opportunity for a total of
39.1 thousand persons, increasing significantly from that in 1992/93, which
amounted to 37.3 thousand persons. In the framework of utilizing manpower
potential particularly in the densely populated and low-income, undeveloped
and natural disaster-prone areas, the utilization of PTKPSP had been carried
out in PJP I through the system of labor intensive technology (TPK). This
activity is among others, realized through the construction/rehabilitation of
local community’s facilities, such as the constructional improvement of
village road and irrigation. The physical construction is also directed towards
supporting the effort of settlement environmental development and area
development for the region, with the potential in producing the non-oil/and
gas commodities, In 1993/94, the utilization of PTKPSP was carried out
through the use of local manpower amounting to 367,357 persons.
The physical achievement of PTKPSP program has been in the form of
improvement/construction of village roads, tertiary irrigation systems, new
rice-field, dikes, piers, regreening, terracing, etc. In the framework of
expanding the labor intensive technology (TPK) and most effective
technology(TTG). Various kinds of technology have been developed
throughout the 27 provinces of Indonesia. In 1993/94, a total of 30 kinds of
technology were successfully developed.
In socializing the kinds of technology, particularly in rural areas, a
book entitled “Profil Technologi Padat Karya” (the Profile of Labor Intensive
Technology) has been issued and distributed to villagers. This guide book is
very useful for the Voluntary Educated Workers (TKST), boyscouts as well
as social workers, assigned in the regions.
In utilization of TKST, university graduates are mainly posted in the
regions as the Pioneers of Rural Development Reformation (TKS-BUTSI).
Since Repelita V, TKS-BUTSI was changed themselves to TKST and its
assignment is directed towards the promotion of self-employment in order to
improve and develop to be entrepreneurial cadres. In 1993/94, the number of
TKST posted throughout the 27 provinces of Indonesia was 2,730, a
significant increase from that in 199/93, which numbered only 2,234.
The distribution of labor information during PJP I was continuously
adjusted to the number of job seekers and the existing vacancies. In 1993/94,
the number of manpower registered in the waiting list was 3,192.8 thousand
persons, while the number of vacancies was only 312.8 thousand. Of this
amount, a total of 273.5 thousand persons was successfully posted, 690.7
thousand was revoked from the list, making a reminder of 2,228.6 thousand
persons. Labor information can be used to support distribution of manpower
through the Inter-Regional Manpower Placement System (AKAD), the Local
Manpower Placement Program (AKL), and the Inter-Nation Manpower
Placement Program (AKAN).
In 1993/94, a total of 160 thousand persons was employed through
AKAN mechanism in various activities, such as: plantation, transportation,
electricity, electronics, health services, hotel, processing industry, oil
exploration and mining. Most of them were sent to the Middle East,
Malaysia, Brunei, Singapore, Taiwan, South Korea and some European
In 1993/94, some 55.9 thousand persons were employed through
AKAD mechanism and a total of 273.5 thousand through AKL mechanism.
In the meantime, the utilization of foreign workers is limited and wholly
regulated by the Presidential Decision No. 23 of 1974. In 1993/94, the kinds
of occupation closed for foreigners, occupation allowed for a certain period,
occupation temporarily opened and restricted occupation for foreigners
showed an increase compared with that in the previous year, namely 1,841.
3,089.223 and 5,153 occupations found in 27 business sectors.
The extension and enhancement of manpower skills and training
program are offered not only to unemployed manpower, but also to employed
ones. In 1993/94, the program activities covered the training for manpower
skills and productivity and the training for private workers. In order to meet
the manpower demand, cooperation with various private companies are
carried out through the utilization of Labor Training Centers (BLK) and
Labor Training Courses (KLK).
In 1993/94, the number of manpower trained in BLKs amounted to
147,771 persons or an increase of 6.1% compared with that in the previous
year. In effort of improving the training quality, upgrading for 235 BLK
instructors was carried out during 1993/94. Besides, a kind of training
through Mobile Training Unit (MTU) was conducted to expand self-
employment in rural areas. In 1993/94, the training through MTUs was
participated by 50,798 persons.
In order to support the growth of manpower able to open own
productive job opportunity, enhance the management productivity and
efficiency, improve the utilization of maintenance and operation systems and
boost the management of company to involve its workers in making decision,
the training for the private business and self-employed in the informal sector
is also conducted. The small and middle-scale entrepreneurs following this
kind of training in 1993/94 numbered 2,890 persons.
For the improvement of the industrial sector, the executive institution
of the private and state-run companies as part of the national training system
is continuously supported to step up its role. In order to promote private
training institutions, a total of 1,370 instructors of the private training
institutions was upgraded during 1993/94.
The program of employment management and manpower protection is
directed towards creating the Pancasila Industrial Relations (HIP). In this
program, the relation between the workers and employers is very harmonious,
so that the stability as well as safety of business can be achieved.
This program also gives protection to manpower activity, which in turn
can improve the welfare of manpower and the progress of business. HIP
management and manpower protection are implemented through various
activities, such as: development and stabilization of manpower institute, the
control of vocational safety and health, the regulation of wage, the
enhancement of welfare and the formation of labor agreement. However,
manpower institution is an important structure in creating harmonious as well
as dynamic HIP and it aims to realize the stability in business.
The activity is among other things implemented through HIP’s
education and counseling for the workers, entrepreneurs and government
officials. In 1993/94, HIP’s education and counseling for 2,078 persons,
consisting of 1,855 workers, 220 entrepreneurs and 3 government officials
was carried out.
The labor organization, in this case SPSI - All Indonesia Workers
Union is continuously improving. In 1993/94, the number of SPSI labor units
was expanded to 1,089 units or an increase of 11.4% compared with that in
1992/93. Thus, until the last year of Repelita V, 269 SPSI branches (DPC)
and 27 SPSI regional boards (DPD) were strengthened.
Other manpower institutions, such as the Tripartite Cooperation Board
(BKS) as the consultation and communication forum among the government
labor organizations and entrepreneurial organizations are continuously
enhanced. In fiscal year 1993/94, 139 BKS were established. Thus until the
last year of Repelita V, a total of 3,096 BKS were established in company
level. The National and Regional Commissions on the Settlement of Labor
Disputes (P4P and P4D) with the task of giving the services to the public by
helping them to solve disputes as well as job dismissal was also stabilized.
From 55 cases of industrial relations disputes occurring in 1993/94, some 42
cases were accomplished.
Meanwhile, Health and Safety at Work (K3) as one of the efforts in the
manpower protection is carried out selectively through counseling and control
in the companies. Besides, control over K3 norm execution in the companies
was conducted, covering the supervision towards poisoning danger, radiation
effects, use of chemical substances, explosion, fires and other accidents at
A kind of policy in the field of wage in order to improve the
manpower welfare and its family creates and supports the enhancement of
company’s productivity has been launched. This wage policy is also directed
towards bridging the wage gap at the same occupation, either inter-region,
inter-sector or inter-company.
During Repelita V, the stipulation of minimum wage aimed to succeed
the minimum physical demand was issued. In order to enhance the manpower
welfare, the Manpower Social Insurance Program (JAMSOSTEK) is
established by PERUM ASTEK (the Employee Social Insurance Scheme).
The JAMSOSTEK program helps alleviate workers burden, which activities
consisting of : accident insurance, pension saving, life insurance,
maintenance and health service insurance.
The number of participants, following the JAMSOSTEK program has
been increasing from year to year. Cumulatively, until 1993, the total number
of JAMSOSTEK participants amounted to 46,456 companies covering more
than 5.8 million persons of manpower.
In that year, PERUM ASTEK accomplished 86,921 cases of
vocational accident, pension saving and life insurance with the total payment
amounted to Rp 52.4 billion. Concerning the labor agreement in the form of
Working-Together Commitment (KKB) in the company, it becomes a job
requirement that stipulated by the results of deliberations and
By the appearance of KKB or at least the company’s regulation, it
expected that both workers and employers knowing their rights and duties
respectively, so that it will decrease and prevent all industrial relation
disputes arisen among them, which in turn will support the appearance of a
stability in business and enhance the productivity.
In 1993/94, some 391 KKBs were established or an increase of 5.1%
compared with that in 1992/93. Until the last year of Repelita V, a total of
8,132 KKBs in 10,640 companies that having SPSI labor unit had been
established. In 1993/94, some 1,007 company’s regulations had been issued
or an increase of 4.4% compared with that in the previous year. Thus, until
the end of Repelita V, a total of 24,021 company’s regulations had been
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