Facing the AEC, Indonesia?s Labor Sector Remains Problematic

 
Fitri Novia Heriani, Andin Aditya Rahman
 
Indonesia remains behind in its preparation for the ASEAN Economic Community (AEC) due to commence late 2015 particularly in the labor sector. Frans Go, Head of the Labor Empowerment Committee at the Indonesian Chamber of Commerce (KADIN) has identified two main problems in regards to labor affairs.
 
According to Mr. Go, the first problem is a lack of employment opportunities. This is due to economic growth that is still not able to absorb the majority of the labor force. As a result, Indonesia’s unemployment increased to 6.25 percent (as of August 2013) from 5.92 percent (as of February 2013) based on data from the Indonesian Statistics Bureau (BPS).
 
Second is the poor quality of the labor force in general. According to BPS data for August 2013, 52 million workers are only  primary school graduates.
 
“These circumstances require us to find a breakthrough solution, so that our labor force, as a national asset, does not become a burden on our future development,” stated Mr. Go last Wednesday.
 
In addition to labor affairs, there is also criticism regarding the Government’s lack of focus in preparing Indonesia’s agricultural and fishery sectors for the implementation of the AEC. Riza Damanik, Executive Director of Indonesia for Global Justice (IGJ), said that Indonesia’s preparations for the AEC could potentially fail entirely, primarily because the Government is yet to provide measures to protect domestic farmers and fishermen.
 
“In actual fact, Indonesia’s population growth is still high, food and fishery consumption continues to rise, and 80 to 90 percent of domestic food consumption is satisfied by small farmers and fishermen,” Mr. Damanik said.
 
According to Riza, the principal matter of concern regarding the upcoming AEC is the integration of agriculture and fisheries between the ASEAN members, which will force domestic farmers and fishermen to compete with those of foreign countries.
 
“For this, a new strategy is needed to protect Indonesian farmers and fishermen, especially facing 2015 AEC,” he concluded.
 
(For more information on the AEC, see ILD No. 355)
 
(hot/kc)
 
Fitri Novia Heriani, Andin Aditya Rahman
 
Indonesia remains behind in its preparation for the ASEAN Economic Community (AEC) due to commence late 2015 particularly in the labor sector. Frans Go, Head of the Labor Empowerment Committee at the Indonesian Chamber of Commerce (KADIN) has identified two main problems in regards to labor affairs.
 
According to Mr. Go, the first problem is a lack of employment opportunities. This is due to economic growth that is still not able to absorb the majority of the labor force. As a result, Indonesia’s unemployment increased to 6.25 percent (as of August 2013) from 5.92 percent (as of February 2013) based on data from the Indonesian Statistics Bureau (BPS).
 
Second is the poor quality of the labor force in general. According to BPS data for August 2013, 52 million workers are only  primary school graduates.
 
“These circumstances require us to find a breakthrough solution, so that our labor force, as a national asset, does not become a burden on our future development,” stated Mr. Go last Wednesday.
 
In addition to labor affairs, there is also criticism regarding the Government’s lack of focus in preparing Indonesia’s agricultural and fishery sectors for the implementation of the AEC. Riza Damanik, Executive Director of Indonesia for Global Justice (IGJ), said that Indonesia’s preparations for the AEC could potentially fail entirely, primarily because the Government is yet to provide measures to protect domestic farmers and fishermen.
 
“In actual fact, Indonesia’s population growth is still high, food and fishery consumption continues to rise, and 80 to 90 percent of domestic food consumption is satisfied by small farmers and fishermen,” Mr. Damanik said.
 
According to Riza, the principal matter of concern regarding the upcoming AEC is the integration of agriculture and fisheries between the ASEAN members, which will force domestic farmers and fishermen to compete with those of foreign countries.
 
“For this, a new strategy is needed to protect Indonesian farmers and fishermen, especially facing 2015 AEC,” he concluded.
 
(For more information on the AEC, see ILD No. 355)
 
(hot/kc)
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