Economist: Additional Policy Support Needed to Maximise MagangHub Impact
Jakarta (ANTARA) - The Executive Director of the Centre of Reform on Economics (CORE) Indonesia, Mohammad Faisal, believes that the MagumnHub programme needs to be supported by additional policies to increase its impact on labour absorption, including through investment and job creation.
“Regarding its impact on youth unemployment, this programme should be able to help. However, it should not be viewed as a one-size-fits-all solution that can solve this problem alone. This programme must be strengthened with other programmes and policies, so it does not stand in isolation,” said Faisal when contacted by ANTARA in Jakarta on Friday.
Faisal reminded that youth unemployment is a much larger issue, meaning that internship programmes cannot be the sole solution.
In his view, internship programmes are merely one of the solutions that can be offered and therefore need to be reinforced alongside other policies.
One policy that can be encouraged, Faisal added, is increasing investment and directing incoming investment so that it can absorb domestic labour.
Furthermore, requirements for domestic labour absorption should be encouraged in every enterprise established or operating within Indonesia.
He believes that as long as the demand for domestic labour can be met by the available supply, companies should not utilise foreign workers from abroad.
Exceptions may be granted if the required expertise is truly unavailable domestically, or if the available local expertise is of a significantly lower quality, raising concerns about a potential decline in productivity or corporate performance.
In general, Faisal assesses that internship programmes can help address the issue of skill mismatches. However, this issue is only one of several problems related to unemployment.
“Another issue is whether the supply of job opportunities is sufficient or not. This is also what must be addressed to be able to reduce the unemployment rate,” he said.
In addition to the number of jobs, Faisal also emphasised the importance of considering job quality and wage levels.
According to him, labour issues are not just about whether someone is no longer unemployed, but also about the quality of the work obtained and the level of wages received.
He added that internship programmes also need to be expanded while being accompanied by regular evaluations. In his view, those who have participated in internship programmes still face barriers to entering the workforce, especially when job competition is intense.
Therefore, Faisal believes that engagement with the business world needs to be strengthened so that more business actors are aware of the programme and provide workplaces for job seekers, particularly programme participants.