Indonesia's jobless rate 'serious'<\/p>\n
JAKARTA (JP): Minister of Manpower Abdul Latief, disclosing
\nthe official unemployment rate as ranging from four and 40
\npercent -- depending on the definitions used, warned yesterday
\nthat Indonesia is facing a "very serious unemployment problem."<\/p>\n
Latief told reporters, after reporting to President Soeharto
\nat Merdeka Palace, that he plans to call for a series of
\ncoordinating meeting with other cabinet ministers, to discuss
\nIndonesia's unemployment issue.<\/p>\n
He explained that the government is now using three different
\ndefinitions in determining the unemployment rate in the country.<\/p>\n
The first, which has been used all this time, defines
\nunemployment as those who work less than one hour a week. Using
\nthis definition, Indonesia's unemployment rate in 1994 was put at
\n3.65 million, or 4.37 percent of the total work force.<\/p>\n
The second definition puts unemployment as those who work less
\nthan 15 hours a week. In 1994, there were 11.15 million people,
\nor 13.33 percent of the work force, who fell into this category.<\/p>\n
The third definition brings together anyone who works less
\nthan 35 hours a week as unemployed. Under this category, the
\nunemployment rate is put at 33.35 million, or a staggering 39.85
\npercent of the work force.<\/p>\n
Latief gave optimistic projections, saying that the
\nunemployment rate of any of the definitions above will decline,
\nbased on the assumption that Indonesia's economy will perform
\nwell in the next decade or so.<\/p>\n
He said that his planned coordinating meetings would take a
\n"serious look" at the efforts of bringing down the unemployment
\nrate. "We're counting on all governors to solve the unemployment
\nproblem in their respective provinces."<\/p>\n
The key to solving Indonesia's unemployment problem is to
\nencourage the growth of small and medium enterprises, which
\ntogether, still account for the largest number of jobs available,
\nhe said. "The government will offer them incentives to grow."<\/p>\n
The government is also revamping its vocational training
\ncenters, to better suit the needs of small and medium
\nenterprises, he said.<\/p>\n
One of the most serious problems confronting small and medium
\nenterprises is their poor management, particularly at the middle
\nlevel, Latief, a successful businessman recruited into the
\ncabinet by President Soeharto in 1993, said.<\/p>\n
Latief also reported yesterday to the President on ambitious
\nplans to expand the business of PT Astek, the state-owned workers
\ninsurance company he oversees, into other fields of business,
\nusing its huge funds accumulated from insurance premiums.<\/p>\n
Current projections of Astek's business activities and
\nrevenues, he said, would make the company one of the largest and
\nmost modern insurance companies in Asia.<\/p>\n
Astek plans to set up subsidiaries active in profitable
\nbusinesses, such as pulp and plywood, he said, stressing that,
\nfrom a business point of view, these two areas are considered
\namong the safest.<\/p>\n
Latief said he was optimistic that Astek's annual revenue from
\nits Workers' Social Insurance plan premiums will increase from Rp
\n0.9 trillion (US$390 million) this year, to Rp 9.83 trillion in
\nthe year 2000, Rp 28.75 trillion in 2008 and 61.67 trillion by
\n2018.<\/p>\n
Its accumulated investment fund will grow from Rp 3.20
\ntrillion this year, to 14.92 trillion in 2000 and 706.33 trillion
\nin 2018.<\/p>\n
This projection is based on the assumption of an ever growing
\nnumber of participants in the insurance plan.<\/p>\n
PT Astek has launched a vigorous campaign to ensure that
\ncompanies register all their workers for the social security
\nprogram, something which is compulsory under a 1992 law, although
\nthe government has given companies time to adjust to the
\nlegislation.<\/p>\n
To prepare Astek divest its business, the company has been
\nundergoing a "re-engineering" process in its organization and
\nmanagement, the minister said.<\/p>\n
Latief added that the President has already approved Astek's
\nexpansion plans. (emb)<\/p>",
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