Ady TD Achmad, Robert Sidauruk
Muhaimin Iskandar, Minister of Manpower and Transmigration, has set a target of reducing the unemployment rate to 5% - 5.8% this year. Muhaimin believes the unemployment rate should not be greater than 5.1% in 2014.
Such confidence, as the Minister noted, is realistic on the assumption that Indonesian economic growth shouldreach 6.8% - 7.2%.
“Every 1% of economic growth will contribute to produce a total of 350,000 job opportunities, in the formal and informal sectors,” Muhaimin said.
To boost progress in achieving this target, Muhaimin said that his Ministry will initiate a national “Unemployment Reduction Movement”. The movement will focus on empowering society to create job opportunities.
While being optimist, Muhaimin emphasized the importance of commitment from government institutions, markets, and society to keep up momentum in a well planned and sustainable manner.
Muhaimin commented that the Government is currently focusing on youth entrepreneurship development, to support this movement. This approach is being implemented through many initiatives such as funding, promotion, and other types of support.
Furthermore, Muhainin believes that internships for high school students ares another effective means of realizing the target. Internships will ensure a match between education and the needs of business.
“A problem we are facing at the moment is the gap between worker competences and job requirements in the market,” Muhaimin explained.
Meanwhile, Timboul Siregar, Secretary General of All-Indonesia Workers Organization (OPSI) acknowledges the efforts of the Government to reduceunemployment. Timboel, however, believes that the target set out by the Minister is unrealistic.
Timbul cited data from the National Development Planning Board (Bappenas) in 2012, which indicates that in that year every 1% of economic growth only created 183,000 job opportunities.
“This year Bappenas is estimating only 225,000 job opportunities for every 1% of economic growth,” Timbul added.
Timbul also highlighted the new price of subsidized fuel which will also add to making the target is unrealistic. The weakening of consumer purchasing power due to the increase of fuel prices will result in economic growth in the range of 6.2% - 6.4%.
Timbul also considers that a lack of commitment from the Government also contributes to the high unemployment rate. It seems that the Government does not have a fundamental policy to address the unemployment issue.
“For instance the State Budget Plan (APBN) and transmigration policy has failed to stimulate the creation of sustainable job opportunities,” Timbul asserted.
(hot/kc)
Ady TD Achmad, Robert Sidauruk
Muhaimin Iskandar, Minister of Manpower and Transmigration, has set a target of reducing the unemployment rate to 5% - 5.8% this year. Muhaimin believes the unemployment rate should not be greater than 5.1% in 2014.
Such confidence, as the Minister noted, is realistic on the assumption that Indonesian economic growth shouldreach 6.8% - 7.2%.
“Every 1% of economic growth will contribute to produce a total of 350,000 job opportunities, in the formal and informal sectors,” Muhaimin said.
To boost progress in achieving this target, Muhaimin said that his Ministry will initiate a national “Unemployment Reduction Movement”. The movement will focus on empowering society to create job opportunities.
While being optimist, Muhaimin emphasized the importance of commitment from government institutions, markets, and society to keep up momentum in a well planned and sustainable manner.
Muhaimin commented that the Government is currently focusing on youth entrepreneurship development, to support this movement. This approach is being implemented through many initiatives such as funding, promotion, and other types of support.
Furthermore, Muhainin believes that internships for high school students ares another effective means of realizing the target. Internships will ensure a match between education and the needs of business.
“A problem we are facing at the moment is the gap between worker competences and job requirements in the market,” Muhaimin explained.
Meanwhile, Timboul Siregar, Secretary General of All-Indonesia Workers Organization (OPSI) acknowledges the efforts of the Government to reduceunemployment. Timboel, however, believes that the target set out by the Minister is unrealistic.
Timbul cited data from the National Development Planning Board (Bappenas) in 2012, which indicates that in that year every 1% of economic growth only created 183,000 job opportunities.
“This year Bappenas is estimating only 225,000 job opportunities for every 1% of economic growth,” Timbul added.
Timbul also highlighted the new price of subsidized fuel which will also add to making the target is unrealistic. The weakening of consumer purchasing power due to the increase of fuel prices will result in economic growth in the range of 6.2% - 6.4%.
Timbul also considers that a lack of commitment from the Government also contributes to the high unemployment rate. It seems that the Government does not have a fundamental policy to address the unemployment issue.
“For instance the State Budget Plan (APBN) and transmigration policy has failed to stimulate the creation of sustainable job opportunities,” Timbul asserted.
(hot/kc)