Better skilled workers needed to anticipate trade liberalization<\/p>\n
JAKARTA (JP): Labor and business experts warn that unless
\nimmediate action is taken, Indonesian workers won't be able to
\nwithstand the liberalization of the flow of goods and services,
\nincluding labor, in the next century.<\/p>\n
Businessman Arnold Baramuli, union leader Imam Sudarwo and
\nYudo Swasono from the Ministry of Manpower, formed a chorus at a
\nseminar yesterday when calling for immediate action to make
\nIndonesian workers more productive and competitive.<\/p>\n
Indonesia must improve the quality of its workers in order to
\ntake full advantage of the free trade arrangements it is entering
\ninto, Baramuli, who is also a member of the House of
\nRepresentatives, said.<\/p>\n
He said the task of strengthening the Indonesian work force
\nfalls largely on small and medium scale companies because they,
\nrather than the large companies, are expected to lead Indonesia
\ninto the free trade era.<\/p>\n
Failure to act now could leave Indonesia "a mere spectator in
\nthe free competition," he said.<\/p>\n
The one-day seminar was organized by Kosgoro, a cooperative
\nmovement affiliated to the ruling political group Golkar. The
\nmeeting also featured Saleh Alwaini, an executive of a company
\nwhich sends Indonesian workers abroad.<\/p>\n
The seminar specifically discussed the challenges Indonesian
\nworkers will face when the Asia-Pacific region phases in its free
\ntrade arrangement in 2010.<\/p>\n
Baramuli said Indonesia will not be able to compete in
\ncapital-intensive and hi-tech industries now dominated by
\nadvanced countries.<\/p>\n
Indonesia's strength will be in small and medium scale
\ncompanies and they should be the ones to educate and train the
\nworkers, he said.<\/p>\n
This means that the government should continue to cultivate
\nthe development of small and medium scale companies through more
\nderegulatory measures. Financial conditions, for one, need
\nrestructuring to allow small and medium companies greater access
\nto credit facilities, he said.<\/p>\n
Yudo warned that the obligatory liberalization measures under
\nthe General Agreement on Tariff and Trade (GATT) would be
\nexpanded to include trade in services, and this means the
\nliberalization of the flow of workers.<\/p>\n
He said Indonesia needs to strengthen the quality of its
\nworkers in order to minimize the impact of the inflow of foreign
\nworkers into the country.<\/p>\n
GATT allows for some temporary relief measures but Indonesia
\nshould be prepared to face the possible consequences of the full
\nenforcement of GATT by 2005, he said.<\/p>\n
Under GATT's principles on the movement of labor, a country is
\nonly allowed to set professional qualifications for foreign
\nworkers as a way of limiting the inflow of workers.<\/p>\n
Imam Sudarwo argued that the low quality and productivity of
\nIndonesian workers was caused not only by their poor education,
\nbut also by low wages, lack of social security and restricted
\nfreedom of association.<\/p>\n
"In facing the free trade era, we should address these
\nproblems," he said.<\/p>\n
He said Indonesian industrial workers are among the lowest
\npaid in Asia, even lower than their counterparts in China.<\/p>\n
An Indonesian worker earns an average of US$0.28 per hour, he
\nsaid. This is much lower than the minimum wage of $0.54 per hour
\nin China, $1.80 in Malaysia and $16.91 in Japan. (rms)<\/p>",
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"sponsor": "Okusi Associates",
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