Employment of expatriates to be eased<\/p>\n
JAKARTA (JP): The government will ease restrictions on the
\nemployment of expatriates for jobs which cannot be handled by
\nIndonesians in a bid to promote foreign investments in the
\ncountry, Minister of Information Harmoko said here yesterday.<\/p>\n
\"President Soeharto instructed related government institutions
\nto allow the employment of expatriates without any financial
\ncharges if local professionals are unavailable for certain
\npositions,\" he told reporters after a limited cabinet meeting on
\nthe economy at the Bina Graha office here.<\/p>\n
According to the Central Bureau of Statistics, the number of
\nexpatriates working for domestic and foreign companies steadily
\nincreased from 18,000 in 1984 to 37,663 in 1992 due to a shortage
\nof local skilled professional managers, while the number of
\ninvestment projects was increasing.<\/p>\n
Several companies said that a lack of qualified local
\npersonnel has forced them to hire expatriates.<\/p>\n
Harmoko explained that the President instructed the ministries
\nof industry and manpower and the Investment Coordinating Board
\n(BKPM) to formulate measures to ease the employment of
\nexpatriates, particularly for jobs which cannot be handled by
\nIndonesians.<\/p>\n
According to Governmental Decree No. 23\/1974, companies
\nestablished by domestic and foreign investors are allowed to
\nemploy foreigners for certain jobs within a certain period of
\ntime after getting permits from the Ministry of Manpower, but
\nthey must train Indonesian personnel to replace the expatriates.
\nIf the employment of expatriates lasts longer than the designated
\nperiod, the employers must pay fees to the government, which will
\nuse the fees for training Indonesian personnel.<\/p>\n
\"The employment of expatriates should be freed from any
\nlevies,\" Harmoko said.<\/p>\n
He did not specify whether the easing of restrictions will
\nmean abolishing of the fees for training Indonesian personnel.<\/p>\n
Harmoko said the planned measure is necessary to promote
\nforeign investment in the country.<\/p>\n
Data at BKPM show that foreign investments approved by the
\ngovernment during the first seven months of this year reached
\nUS$14.7 billion, as compared to $8 billion in the whole year of
\n1993 and $10 billion in 1992.<\/p>\n
Inflation<\/p>\n
Harmoko said yesterday that President Soeharto also expressed
\nconcern over last month's high inflation, which reached 1.37
\npercent due to the sharp increases in the prices of food and
\nhousing costs.<\/p>\n
\"The 6.05 percent increase in the prices of grains and the
\n3.05 percent rise in beverage prices caused the index of food
\nprices to increase by 1.57 percent last month,\" he said.<\/p>\n
He said housing costs increased by an average of 1.42 percent
\nlast month and the prices of services by 1.23 percent, while the
\nprices of clothing rose 0.42 percent.<\/p>\n
Last month's high increase in consumer prices brought the
\ncountry's inflation to 5.96 percent during the first seven months
\nof this year, he said.<\/p>\n
The government, under its Sixth Five Year Development Plan,
\naims at curbing inflation at a maximum of five percent in the
\ncoming five years.<\/p>\n
Rice<\/p>\n
The minister said Soeharto also expressed concern over
\nincreases in rice prices in spite of the fact that supplies are
\nadequate.<\/p>\n
\"The prices of medium-class rice rose by 4.3 percent to an
\naverage of Rp 664 (30.64 U.S. cents) per kilogram,\" Harmoko said.<\/p>\n
He acknowledged that this year's dry season has affected
\n246,000 hectares of rice fields, of which 64,000 hectares are
\ndamaged. \"But the impact of this year's dry season is not as
\nsevere as that in 1991, when 843,000 hectares were affected,
\nincluding 190,000 hectares of damaged fields,\" he said.<\/p>\n
This year's dry season will not end until November.<\/p>\n
\"The rice price hikes have been caused mainly by the over-
\npublication of the impact of the dry season by television
\nbroadcasters,\" he said.<\/p>\n
\"The supplies of rice are actually adequate but the buffer-
\nstocking system is apparently less than effective,\" he added.<\/p>\n
He said the President, therefore, instructed the National
\nLogistics Agency (Bulog) to take measures to stop increases in
\nrice prices.<\/p>\n
Harmoko said the meeting also reported that Indonesia enjoyed
\na trade surplus of $591.8 million in May from its exports of
\n$3.19 billion, while its imports reached only $2.6 billion.<\/p>\n
The revenues from the May exports included $756 million from
\noil and gas exports and $2.43 billion from non-oil exports, he
\nsaid.<\/p>\n
During the first five months of this year, the country gained
\na trade surplus of $2.92 billion from its exports of $14.82
\nbillion because its imports were recorded at $11.9 billion, he
\nadded.<\/p>\n
The minister said the meeting also reported the country's plan
\nto build 31 fishing vessels, which will be leased to fishermen,
\nwith Spanish aid of $200 million. (riz)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/employment-of-expatriates-to-be-eased-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}