City likely to allocate Rp 17b for labor program

City likely to allocate Rp 17b for labor program

JAKARTA (JP): The municipality hopes to set aside Rp 17
billion (US$1.7 million) in the 1998/1999 city budget to finance
a labor-intensive program, an official said yesterday.

Prawoto Danoemihardjo, the city's assistant of economic and
administrative affairs, told The Jakarta Post that the fund was
needed to cope with the city's unemployment crisis.

"This is the first time a special fund for this purpose has
been proposed. Every year the fund for the labor-intensive
program only constitutes a small amount of money and is included
in the city manpower agency's budget."

The proposal will be presented to City Council next month and,
if approved, it will be officially enacted in April, he said.

An estimated 900,000 people lost their jobs here last year due
to the monetary turmoil.

In a bid to save the city from an unemployment disaster and
possible social unrest, Governor Sutiyoso launched earlier this
month a labor intensive project worth Rp 4.5 billion from the
National Development Planning Board (Bappenas).

The project is intended to employ 35,000 blue-collar workers
for 80 days. They began work in the second week of January,
repairing water pipelines, dredging rivers and renovating dikes
and water canals throughout the city's five mayoralties.

In its clean river project, the municipality, in cooperation
with private consulting company PT Kirana Satria Enam has
reportedly hired a further 90,000 workers.

"All of these kinds of projects will be continued. The city
could not possibly afford to accept expensive project proposals.

"Most of the programs to be approved by the city in this
turbulent period will be oriented toward projects that absorb as
many workers as they can," Prawoto said.

Besides the municipality projects, the ministry of public
works will also employ blue-collar workers for road and flyover
projects throughout the city, he added.

Prawoto also revealed that the municipality is expecting
higher economic growth in the city this year.

"Let's hope that we can have more than zero growth here.
Because usually Jakarta has higher economic growth than the
average national rate."

He said some development projects which are considered
unnecessary would be delayed, such as the development of South
Jakarta mayoralty office in Blok P and other buildings.

But projects like the three-tier transit system, road repairs,
the construction of bridges and other public works will be
continued.

In response to the municipality's plan to set aside a special
fund for labor intensive projects, city councilor Fatommy Asaari,
head of Golkar faction, told the Post that the proposal had been
discussed some time ago.

"I believe the proposal is reasonable because it is the best
way possible to cope with the impact of the monetary woes, namely
the rising number of jobless people in the city.

"But one thing to remember is we want the fund to be used
effectively, which means it will not function as some kind
of 'charity' to save those workers. The municipality is not Santa
Claus, we can't give away money that easily," he said.

Fatommy suggested that the Rp 17 billion fund be included in
the city budget and be used to employ workers in the city's
larger projects, such as the three-tier transit system.

"But don't give the fund to the private sector who may say
they are running labor-intensive projects," he said. "The fund
must be managed entirely by the municipality because businessmen
tend to gain profits from every proposal they make."

And the municipality must not give the impression that it is
handing out jobs, he said.

"Think of what is best to develop this city. Try to gain
something positive from the crisis."

Ahyadi, a 35-year-old blue-collar worker in Central Jakarta,
said that he jumped at the chance to join the labor-intensive
program after being fired last September.

"Even though I only earn a little bit of money here, at least
I can eat. I don't know where I will go after this dike-repair
project is over. Hopefully, I'll get another job as part of
another program." (edt)