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HIGHLIGHTS ON INDONESIA





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 interest.

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 non-agricultural one.

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 Countries.

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.

MANPOWER TRAINING

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.

MANPOWER PROTECTION

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 work.

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 consolidation.

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 issued.

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Last Update on 19.05.2002