KPEN calls MPR to help solve unemployment problem<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The National Economic Recovery Committee (KPEN) called on
\nlawmakers to seek ways to help resolve the country's pressing
\neconomic difficulties, particularly unemployment.<\/p>\n
\"Although there are signs that certain (macroeconomic)
\nindicators are improving, there are still many economic problems
\nthat must be addressed,\" KPEN chairman Sofjan Wanandi told
\nreporters at a media conference.<\/p>\n
The People's Consultative Assembly (MPR), the country's
\nhighest lawmaking body, is holding a 10-day Annual Session to
\nformulate ways to boost the country's fragile democracy. One of
\nthe main items on the agenda is the amendment to the
\nConstitution.<\/p>\n
But Sofjan said that lawmakers should also make solving
\neconomic problems a priority.<\/p>\n
He told The Jakarta Post that KPEN supported plans by
\nlawmakers to issue a special MPR decree on economic recovery, but
\nquickly added that the decree must stipulate clear measures and
\nspecific targets for the government in fixing the economy,
\nparticularly on how to resolve the unemployment problem.<\/p>\n
Economists previously criticized the MPR decree draft as being
\n\"too general and lacking in clear-cut guidelines\".<\/p>\n
The decree on economic recovery is meant to provide guidelines
\nfor the government to accelerate economic recovery.<\/p>\n
Sofjan said that the country's economy, which contracted by
\nnearly 14 percent in 1998 in the wake of the political and
\neconomic crisis, was still moving at a slow pace and this was not
\nenough to significantly absorb the millions of people put out of
\nwork by the crisis.<\/p>\n
He explained that while the cash-strapped government could not
\nbe expected to boost spending to push economic growth, other
\neconomic movers, like export and investment, were languishing due
\nto various uncertainties, such as labor disputes and security
\nproblems.<\/p>\n
\"The impact of the slow economic recovery process has limited
\njob creation and spurred a rise in unemployment,\" Sofjan said.<\/p>\n
\"Every year, there are 2.5 million new people looking for
\nwork. Unfortunately, the current 3 percent economic growth can
\nonly absorb 1.5 million people,\" he said.<\/p>\n
According to one estimate, the number of unemployed in this
\ncountry is about 40 million. This figure will rise with the tens
\nof thousands of workers expelled from Malaysia.<\/p>\n
\"Unemployment is a very serious problem. This could create
\ninstability,\" Sofjan said.<\/p>\n
He urged the government to create a conducive climate for
\ninvestors and businesses to help resolve the unemployment
\nproblem.<\/p>\n
He said it was high time that lawmakers create the momentum
\nneeded to accelerate an economic recovery.<\/p>\n
KPEN also urged the government to immediately launch measures
\nto create legal certainty, curb corruption and boost security to
\ngive investors peace of mind.<\/p>\n
\"The investment bill must be deliberated and passed into law
\nimmediately,\" it said.<\/p>\n
He added that investors concerned about labor rulings that
\noverly protect workers at employers' expense must be quickly
\naddressed to prevent investors from moving out of the country.<\/p>\n
He added that rampant smuggling, which had created serious
\nproblems for local businesses, must also be curbed.<\/p>",
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