GATT to remove borders for workers<\/p>\n
By Ridwan M. Sijabat<\/p>\n
JAKARTA (JP): The good news is that as of the year 2005,
\nworkers all over the world, Indonesia included, are virtually
\nfree to move from one country to another.<\/p>\n
The bad news is, as far as Indonesia is concerned, it's going
\nto be a tough and competitive world out there for its workers.<\/p>\n
This warning came from Yudo Swasono, head of the Research and
\nDevelopment Agency of the Ministry of Manpower, after studying
\nthe impact of the General Agreement on Tariffs and Trade (GATT)
\non the labor market. Indonesia is a member of GATT, along with
\n123 other countries.<\/p>\n
Between now and 2005, when most of the existing barriers to
\nthe movement of workers will be lifted, Indonesia must strive to
\nstrengthen the skill and professionalism of its huge workforce,
\nand make them competitive, Yudo told The Jakarta Post.<\/p>\n
\"This country will be flooded by professional expatriates when
\nwe open our labor market to the foreign countries who signed the
\nagreement,\" he pointed out.<\/p>\n
The clause concerning the labor market is part of the General
\nAgreement on Trade in Services (GATS), one of the documents in
\nthe GATT treaty signed in Marrakesh, Morocco, in April.<\/p>\n
When that particular paragraph comes into force in 2005, there
\nwill be greater movement of workers across national borders
\nbecause the GATS compels all signatories to open their doors to
\nforeign workers. There are exceptions, but only under strict
\nconditions and are temporary in nature.<\/p>\n
For a nation increasingly relying on exporting workers, this
\nis good news. But, as Yudo pointed out, it works both ways, and
\nIndonesia must be equally prepared to accept more foreign
\nworkers.<\/p>\n
Currently the employment of foreign workers in Indonesia is
\nstrictly regulated and limited to only managerial-level positions
\nwhich can not be filled by Indonesians. Their work permits are
\nalso reviewed periodically and they are subject to heavy income
\ntaxes.<\/p>\n
Under GATS, Indonesia has already pledged to begin opening the
\nvarious services sectors to foreign exporters and investors,
\nincluding the tourism, hotel and transportation sectors.<\/p>\n
The labor market's integration will be a major challenge,
\nspecifically for the Ministry of Manpower, because it has to make
\nIndonesian workers more professional in order to make them
\ncompetitive in the tough liberalized labor market after 2005.<\/p>\n
Yudo acknowledged this is not an easy task, \"because of the
\nlow quality of our human resources,\" he said, pointing out that
\n76 percent of Indonesian workers have only primary school
\neducation. Many of them did not even complete school.<\/p>\n
Yudo, who received his doctorate on labor economics from the
\nUniversity of Illinois in 1989, said Indonesia could be
\ncompetitive in labor market segments or in professions that
\nrequire limited skills.<\/p>\n
Massive campaign<\/p>\n
He cited bus drivers, tour guides and middle level managers as
\nexamples. \"We will lose out in the upper segments such as
\nprofessional managers, lawyers and accountants,\" he said.<\/p>\n
At present, Indonesia has about 2.5 million low and middle
\nlevel professional workers and about 200,000 professional
\nmanagers, lawyers and accountants.<\/p>\n
The government has agreed to launch a massive campaign to
\npublicize the impact of the GATS on the economy and its
\nimplication on workers.<\/p>\n
Yudo said each country will still be able to impose some
\nrestrictions on the employment of foreign workers but they are
\nstrictly on the professional qualifications of the migrants.<\/p>\n
He conceded that this clause is working to the advantage of
\nthe industrialized countries and at the expense of developing
\ncountries, Indonesia included.<\/p>\n
\"It's a bad trick by developed countries to bar developing and
\npoor countries from taking advantage of the global trade,\" he
\nsaid. \"Who has the most professional managers and noted lawyers?
\nThe developed countries of course.\"<\/p>\n
He stressed Indonesia has no choice but to comply and try to
\ntake as much advantage as it can out of the situation.<\/p>\n
In the services sector, he says, Indonesia's main competitors
\nwill be Singapore, South Korea, Malaysia and the Philippines.<\/p>\n
Regional cooperation through forums like the Association of
\nSoutheast Asian Nations (ASEAN) and the Asia Pacific Economic
\nCooperation (APEC) should also be exploited to Indonesia's
\nadvantage, he added.<\/p>",
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"sponsor": "Okusi Associates",
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