Investors Invited to Reduce Unemployment Rate

Ady Thea Dian Achmad, Andin Aditya Rahman

Muhaimin Iskandar, Minister of Manpower and Transmigration, invites investors to invest in Indonesia. It is hoped that new investment will open and extend employment opportunities, and at the same time reduce Indonesia’s unemployment rate.

The Indonesian Statistics (Badan Pusat Statistik) released a data of Indonesia’s unemployment rate, which as of August 2013 reached 7.39 million people. This figure is higher compared to the rate in February 2013, where the unemployment rate stood at 7.17 million people.

This level of unemployment, as the Minister says, may be adressed by increasing investments in Indonesia. The Minister specifically refers to foreign investors, which will complement economic growth and productivity.

“The government is openly inviting foreign companies to invest a lot more in Indonesia. Foreign investments can contribute to the development of the real sector, support economic growth, and open new employments,” the Minister states in a press release received on Monday.

The Minister, reminds that conducive and coherent industrial relation between employers and employees is required to further attract investors.

“Both foreign and domestic companies must open more conducive dialogues with workers’ unions so they can look for a win-win solution,” he concluded.

Timboel Siregar, Secretary General of Indonesian Workers’ Organization (OPSI), affirmed that investments are necessary to increase job development. More job opportunities, as Timboel asserted, will improve the productivity of Indonesian residents and deter poverty.

However, Timboel suggested that the Government should be more focused on domestic rather than foreign investments. In addition, the Government should also maximize the use of the State Budget to open new jobs.

Timboel said that labor issues should not hinder investments, as labor costs in Indonesia stands approximately at 15 percent of the total production cost. This figure is much lower than other Southeast Asian countries such as Malaysia, Thailand, Philippines, and Singapore.

Further, Timboel added that the Indonesian labor legal framework is much more favorable to investors. The Law No. 13 of 2003 on Labor, and Law No. 2 of 2004 on Industrial Relation Disputes Resolution, implement a flexible labor market system that is advantageous to investors.

“It is not a labor problem,” he asserted during an interview with Hukumonline in Jakarta last Saturday.

He recalled the enactment of the Labor Law, when the Government was certain that it will attract investors to Indonesia. The fact remains that that investors are still cautious to place their capital in Indonesia. According to Timboel, issues that are hindering investments are matters related to infrastructure, bureaucracy, and energy availability.

(hot/kc)

Ady Thea Dian Achmad, Andin Aditya Rahman

Muhaimin Iskandar, Minister of Manpower and Transmigration, invites investors to invest in Indonesia. It is hoped that new investment will open and extend employment opportunities, and at the same time reduce Indonesia’s unemployment rate.

The Indonesian Statistics (Badan Pusat Statistik) released a data of Indonesia’s unemployment rate, which as of August 2013 reached 7.39 million people. This figure is higher compared to the rate in February 2013, where the unemployment rate stood at 7.17 million people.

This level of unemployment, as the Minister says, may be adressed by increasing investments in Indonesia. The Minister specifically refers to foreign investors, which will complement economic growth and productivity.

“The government is openly inviting foreign companies to invest a lot more in Indonesia. Foreign investments can contribute to the development of the real sector, support economic growth, and open new employments,” the Minister states in a press release received on Monday.

The Minister, reminds that conducive and coherent industrial relation between employers and employees is required to further attract investors.

“Both foreign and domestic companies must open more conducive dialogues with workers’ unions so they can look for a win-win solution,” he concluded.

Timboel Siregar, Secretary General of Indonesian Workers’ Organization (OPSI), affirmed that investments are necessary to increase job development. More job opportunities, as Timboel asserted, will improve the productivity of Indonesian residents and deter poverty.

However, Timboel suggested that the Government should be more focused on domestic rather than foreign investments. In addition, the Government should also maximize the use of the State Budget to open new jobs.

Timboel said that labor issues should not hinder investments, as labor costs in Indonesia stands approximately at 15 percent of the total production cost. This figure is much lower than other Southeast Asian countries such as Malaysia, Thailand, Philippines, and Singapore.

Further, Timboel added that the Indonesian labor legal framework is much more favorable to investors. The Law No. 13 of 2003 on Labor, and Law No. 2 of 2004 on Industrial Relation Disputes Resolution, implement a flexible labor market system that is advantageous to investors.

“It is not a labor problem,” he asserted during an interview with Hukumonline in Jakarta last Saturday.

He recalled the enactment of the Labor Law, when the Government was certain that it will attract investors to Indonesia. The fact remains that that investors are still cautious to place their capital in Indonesia. According to Timboel, issues that are hindering investments are matters related to infrastructure, bureaucracy, and energy availability.

(hot/kc)

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