Jakarta (ANTARA News) - Indonesian micro-, small-and medium-sized businesses (UMKMa) provide 99 percent of total employment in the country accomodating up to 90 percent of the country's workers, a national development planning official said.
"Indeed the UMKM provides employment for up to 90 percent of the Indonesian workers while big businesses contribute only 0.19 percent of employment that may accomodate 10 percent of the country's workforce but the UMKM's productivity is still low," the National Development Planning Board's (Bappenas) deputy head for evaluation of developmental performance, Dr Bambang Widianto, said here on Tuesday.
The UMKMs' productivity rate was only Rp23.13 million per person while that of big businesses was Rp728.4 million per person a year, he said.
In a discussion on the latest International Labor Organization (ILO) report, he said in view of that the development of big companies was as important as that of UMKMs.
He said micro-businesses contributed the biggest employment to Indonesia's total productive-age population, namely 62.51 percent accomodating up to 31.05 million workers followed by small businesses contributing 21.36 percent that absorbs 10.6 million workers, big businesses 9.59 percent involving 4.76 million workers and medium businesses providing 6.14 percent employment for 3.05 million workers.
"The cost spent by micro and small businesses indeed is small only Rp603,000 per person per month according to the 2006 economy census while medium businesses and big companies spend Rp2.4 million per person per month," he said.
In terms of investment he said small and medium businesses in 2007 only needed Rp9.27 million of investment per business unit while investment for big businesses reached Rp115.27 billion per business unit compared to total average investment per business unit in Indonesia that is recorded at Rp19.74 million.
He said quoting the ILO data Indonesia's Gross Domestic Product is recorded at 25.7 percent while workforce grows only 5.7 percent and unemployment grows 16.5 percent.
By comparison, he said, Malaysia' GDP is 24.4 percent and employment growth reaches 8.4 percent while its unemployment growth is recorded at 6.1 percent. (*)