Batam seeks return of training funds

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.