Govt allows direct overseas recruitment

JAKARTA (JP): Facing the explosive unemployment problem, the government has allowed foreign employers to directly recruit Indonesian workers, a breakthrough which local labor suppliers see as a threat to their business.

Minister of Manpower Fahmi Idris told journalists yesterday that to encourage citizens to seek employment overseas, the government would simplify bureaucratic procedures.

Fahmi said that the new policy was aimed at easing the unemployment problem that has been intensifying since Indonesia sank into a crippling economic crisis last July.

More and more companies are going bankrupt as the rupiah has lost about 80 percent of its value against the U.S. dollar, while business has practically come to a halt since the massive mid-May riots in Jakarta and other areas.

"We must seek as many job opportunities overseas as possible for the jobless. About 15.4 million people have lost their jobs and this figure is expected to continue rising in coming months," he said.

Fahmi, a former student activist, said the government would simplify the official procedures to get work documents, while foreign employers have to be given access to villages across the country to recruit workers.

"This new policy is expected to help prevent workers from taking the illegal way to go and work overseas," he said.

He argued that many job seekers leave Indonesia illegally, mostly because of complicated bureaucratic procedures. Besides, they have no money to pay the recruitment fee and are extorted by unauthorized labor brokers and corrupt government officials.

"Citizens working abroad should not be treated as milch cows."

Manpower ministry offices in the provinces have been ordered to provide information for both foreign employers and local job seekers but they are barred from involvement in the labor recruitment business.

"Manpower ministry officials extorting job seekers or being involved in collusion in the business will be given stiff penalties," he said.

Fahmi, who took office in May and says he will occupy his post for about six months, said that the government was also making efforts to provide the maximum legal protection to workers abroad.

Indonesian workers would also be given legal protection and insurance by the countries where they were employed while the state-owned insurance company, PT Jamsostek, is expected to cover them when they are at home, the minister said.

Opposition

"Insurance offered by foreign companies is relatively higher than that offered by local firms. Workers on their way from their home to the local international airport, and vice versa, will be covered by PT Jamsostek," he said.

Several local labor export companies are not happy with the government's new policy, saying that it would certainly hit their business and create uncertainty for workers.

Anthon Sihombing, president of PT Alva Asa Vrima, said that the new policy would no longer make labor export a lucrative business.

"All labor export companies have been worried over the new policy. First, we received a heavy blow from the economic upheaval and now comes another cataclysm," he said.

He also said that labor export companies have been confused by a spate of changes in regulations in the labor export sector over the last 10 years.

"Every new cabinet minister introduces his own regulation. This is confusing," he said

Anthon, also secretary-general of the Association of Indonesian Labor Export Companies (Apjati), said that it would be impossible for foreign employers to carry out the mandatory training programs. "For example, is it possible for them to conduct training in Indonesia?"

Mahfudz Djaelani, president of PT Djaya Lima Utama Perkasa, said the government should review the new policy.

According to data at the Ministry of Manpower, Indonesia sent 1.11 million workers overseas and gained US$3.1 billion from them between 1994 and March 1998. (rms)