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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
BKPM Chairman Franky Sibarani (left). Photo by: RES
In a bid to reduce domestic unemployment, President Joko Widodo launched the Intensive-Labor Investment to Create Employment Opportunities Program on Monday, 5 October 2015. The Indonesia Investment Coordinating Board (BKPM) has already declared that it will be overseeing the employment that results from the realization of this investment program as a follow up to the President’s policy, specifically as regards the labor-intensive sector.
The Head of the BKPM, Franky Sibarani, has revealed that his institution has already taken the necessary measures to ensure that the labor recruitment planned by the 16 companies participating in the first program can be carried out according to schedule.
“This measure is quite important in relation to strengthening the positive signals that surround an active economy, advancing investment and, ultimately, increasing the employment rate,” asserted Mr. Sibarani from his Jakarta office on Wednesday, 7 October 2015.
Azhar Lubis, BKPM Deputy for Investment Realization Management, added that his institution had already noted a 16.6 percent growth in investment during the first semester of 2015. In real terms, this represents an IDR 259.7 trillion increase over the same period last year. This increase has resulted in some 686,174 new labor recruits, 12.31 percent higher than last year’s employment rate.
“One of the positive impacts of this labor-intensive investment program is the stimulation of our regional economies,” asserted Mr. Lubis.
Confirming Mr. Lubis’ assessment of the economy, Mr. Sibarani revealed that several textile and garment investors from Central Java had already promised to recruit more workers in November of this year. Mr. Lubis further explained that labor-intensive companies, such as those working in the textile and footwear industries, usually set up their factories in strong labor-source areas, such as Majalengka, Jepara, Sukoharjo, and the like. In essence, workers from these areas no longer need to flock to Jakarta and other urban centers in search of work, as there are plenty of jobs available within their respective regions.
The 16 labor-intensive investment companies which will inaugurate the new investment program are located in West Java and Central Java, and are projected to be able to absorb at least 121,285 members of Indonesia’s domestic workforce over a five year period (2015-2019). Five of these companies are located in West Java and have a total investment value of IDR 5.8 trillion, together with an IDR 1.8 trillion investment realization and some 29,580 employment opportunities. The remaining eleven firms are located in Central Java and have a total investment value of IDR 13.1 trillion, accompanied by an IDR 9.6 investment realization and some 91,705 employment opportunities.
Mr. Sibarani asserted that his institution intends to promote the textile and footwear investment division by inviting up-and-running textile and footwear investors to share their experiences of this business sector. This division is also aiming to realize the government’s aim of assisting struggling investors in order to prevent massive layoffs.
“The President had tasked us [the BKPM] with assisting currently struggling industries so that massive layoffs can be prevented. As an initial step, we will be focusing on the textile and footwear sectors, which have historically absorbed quite a large chunk of the labor force. We strongly hope that existing textile and footwear investors will make good use of this investment division,” concluded Mr. Sibarani.
(sp)
Marcell Sihombing, Fitri N. Heriani
BKPM Chairman Franky Sibarani (left). Photo by: RES
In a bid to reduce domestic unemployment, President Joko Widodo launched the Intensive-Labor Investment to Create Employment Opportunities Program on Monday, 5 October 2015. The Indonesia Investment Coordinating Board (BKPM) has already declared that it will be overseeing the employment that results from the realization of this investment program as a follow up to the President’s policy, specifically as regards the labor-intensive sector.
The Head of the BKPM, Franky Sibarani, has revealed that his institution has already taken the necessary measures to ensure that the labor recruitment planned by the 16 companies participating in the first program can be carried out according to schedule.
“This measure is quite important in relation to strengthening the positive signals that surround an active economy, advancing investment and, ultimately, increasing the employment rate,” asserted Mr. Sibarani from his Jakarta office on Wednesday, 7 October 2015.
Azhar Lubis, BKPM Deputy for Investment Realization Management, added that his institution had already noted a 16.6 percent growth in investment during the first semester of 2015. In real terms, this represents an IDR 259.7 trillion increase over the same period last year. This increase has resulted in some 686,174 new labor recruits, 12.31 percent higher than last year’s employment rate.
“One of the positive impacts of this labor-intensive investment program is the stimulation of our regional economies,” asserted Mr. Lubis.
Confirming Mr. Lubis’ assessment of the economy, Mr. Sibarani revealed that several textile and garment investors from Central Java had already promised to recruit more workers in November of this year. Mr. Lubis further explained that labor-intensive companies, such as those working in the textile and footwear industries, usually set up their factories in strong labor-source areas, such as Majalengka, Jepara, Sukoharjo, and the like. In essence, workers from these areas no longer need to flock to Jakarta and other urban centers in search of work, as there are plenty of jobs available within their respective regions.
The 16 labor-intensive investment companies which will inaugurate the new investment program are located in West Java and Central Java, and are projected to be able to absorb at least 121,285 members of Indonesia’s domestic workforce over a five year period (2015-2019). Five of these companies are located in West Java and have a total investment value of IDR 5.8 trillion, together with an IDR 1.8 trillion investment realization and some 29,580 employment opportunities. The remaining eleven firms are located in Central Java and have a total investment value of IDR 13.1 trillion, accompanied by an IDR 9.6 investment realization and some 91,705 employment opportunities.
Mr. Sibarani asserted that his institution intends to promote the textile and footwear investment division by inviting up-and-running textile and footwear investors to share their experiences of this business sector. This division is also aiming to realize the government’s aim of assisting struggling investors in order to prevent massive layoffs.
“The President had tasked us [the BKPM] with assisting currently struggling industries so that massive layoffs can be prevented. As an initial step, we will be focusing on the textile and footwear sectors, which have historically absorbed quite a large chunk of the labor force. We strongly hope that existing textile and footwear investors will make good use of this investment division,” concluded Mr. Sibarani.
(sp)