Batam seeks return of training funds

Fadli, The Jakarta Post, Batam

Local authorities and labor activists on Batam Island called on the central government to return levy-for-training funds collected from expatriates employed locally, so they could improve the quality of the island's human resources.

Chairman of the local chapter of the Indonesian Prosperity Trade Union (SBSI) Bambang Yulianto said that in line with a presidential decree issued in 1992, each expatriate employed on the island was obliged to pay US$100 per month to help finance local labor-training programs for the island's workers, but so far none of the money had been returned to Batam.

"The Manpower and Transmigration Ministry, which has the authority to issue labor permits for foreigners, has collected around $16 million from 1,055 expatriates working on the island," he said here recently.

Netty Herawaty, chairwoman of the local office of the All- Indonesian Workers Union Federation (FSPSI), said the central government had to return the funds because, according to the presidential decree, the money was collected to finance training for locals so that they could fill positions occupied by foreign workers.

"As the funds have not been used to train local workers, we will never be able to replace foreign workers," she said, adding that the funds should be distributed to local labor unions to finance their training programs.

The chief of the local manpower and transmigration office, Arifin, said the central government had collected $36 million annually, but none of the money had been used to finance training for workers because the funds had been used to finance development programs through the annual state budget.

"The money collected from a total of 30,000 expatriates employed in the country has been treated as non-tax revenue for the government and according to Government Regulation No. 92/2000, such revenue must be included in the state budget," he said.

If the government returned 50 percent of the funds to Batam, at least 1,000 workers could be trained annually, he added.

Taba Iskandar, a member of Batam's legislative council Commission E on labor and social affairs, said Batam has the right to retrieve the funds collected from expatriates to train local workers.

"We will ask the authorities in Batam to stop paying all funds collected from expatriates to the central government if none of the money is returned to Batam," he said.