Marcell Sihombing, Ady T.D. Achmad
M. Hanif Dhakiri, Minister of Employment. Photo by: RES.
In order to take full advantage of the AEC (ASEAN Economic Community), which comes into force this January, the government has laid out a number of National Worker Competency Standards (Standar Kompetensi Kerja Nasional Indonesia - SKKNI) across several sectors of the economy, including real estate, industry, processing, farming, forestry, fisheries, household labor, and tourism. Each of these competency standards has been incorporated into a separate Minister of Employment Regulation.
M. Hanif Dhakiri, Indonesia’s Minister of Employment, has asserted that competency standards are important if Indonesian employees are to prosper during the AEC era, although the minister regrets that not all of the country’s industries are ready to compete in a regional free marketplace. According to Minister Dhakiri, only laborers in the tourism sector are currently prepared to compete wihtin the AEC. SKKNI in the tourism sector are indeed generally seen as being more solid than they are in other economic sectors, as it is common for workers in this sector to hold work competency certification. Therefore, it is believed that they will be able to compete with tourism-industry workers from other ASEAN member countries.
“They are the most well-prepared to face the AEC, as their competency standards are already the equal of workers from other countries. For example, the standard of the cleaning service in Indonesian Hotel A will be exactly the same as Hotel B, located in another country,” explained Minister Dhakiri in his Jakarta office on Thursday, 7 January 2016.
Minister Dhakiri further revealed that to date, the government has already issued 85 SKKNIs and accredited 725 Employment Training Halls (BLK) and Private Employment Training Institutions (LPKS). Moreover, the government has also organized soft-skill and entrepreneurship training events for some 717,454 prospective workers, as well as announcing that 167 Professional Certification Institutions (LSP) have already passed the certification process. In addition, six new BLKs have also been established in Banyuwangi, Sidoarjo, Bantaeng, Pangkajene, Belitung, and Eastern Lombok.
“All these initiatives are part of our efforts to prepare the Indonesian workforce to be able to lead the competition during this AEC era. We must improve the competitiveness of Indonesian workers so that they can compete at the ASEAN and even global levels,” asserted Minister Dhakiri.
The readiness of the country’s labor force will indeed play a key role as the AEC era gets underway, and close cooperation between various business sectors, laborers, and the government will be essential for improving the competitiveness of the Indonesian workforce. With this goal in mind, the Ministry of Employment has already joined hands with various stakeholders, such as ministries and government institutions, the Indonesian Chamber of Commerce, Apindo, and professional associations, in a bid to accelerate the improvement of Indonesian worker competency and competitiveness.
Commenting on this matter, Timboel Siregar, Secretary General of OPSI, lauded Minister Dhakiri’s efforts to prepare the country for the AEC. However, he also criticized the Minister’s policy of focusing on infrastructure building instead of improving the quality and quantity of Indonesia’s competent workers. According to Mr. Siregar, the expansion of the country’s infrastructure should have been completed long before the implementation of AEC. Indeed, if this had been the case, according to Mr. Siregar, then Indonesia would now have millions of trained workers all in possession of proper competency certificates and all ready to compete in the AEC.
“I believe that the government has been sluggish in its efforts to create a competent local workforce,” asserted Mr. Siregar.
Mr. Siregar further revealed that, according to his data, out of 400,000 workers in the Riau Archipelago, a mere 1,400 were in possession of the necessary competence. Siregar asserted that this figure was heavily imbalanced, and that the same situation also applied at the national level.
This issue strongly relates to the availability of work opportunities for domestic laborers and Mr. Siregar expressed his concern that Indonesian employers would ultimately prefer to hire foreign workers (TKA) instead of domestic workers. Moreover, employers would also rather hire TKAs as they can only be hired for a certain period as stipulated under Article 42 (2) of the Labor Law. Therefore, it would be more convenient for an employer to hire TKA, as they can easily be laid off after their employment period has concluded, in contrast with the procedures for the hiring and laying off of permanent domestic workers.
“Regarding the Labor Law, employers may only contract domestic workers for certain types of work and for a certain length of time. If an employer violates this provision and overruns the time limit, then a worker automatically becomes a permanent worker,” asserted Mr. Siregar.
Mr. Siregar also explained that the AEC framework enabled TKAs from ASEAN member countries to enter the Indonesian labor market, and also rendered several provisions set out in the current Labor Law ineffective. For example, Article 43 (2) juncto Article 45 (1) (a) of the Labor Law mandates that Indonesian workers become assistants of TKAs, so that a transfer of technology and skills can be effected.
“The presence of TKAs under the AEC framework no longer relates to the transfer of technology. Instead, they will simply come to work in Indonesia as our domestic workers already do,” asserted Mr. Siregar.
Bringing his remarks to a conclusion, Mr. Siregar suggested that Indonesia’s participation in the AEC must not see prevailing laws and regulations being disregarded, and he strongly emphasized the need for the government to uphold the Labor Law and to enforce provisions pertaining to the employment of TKAs.
(rfs/sp)