Informal sector vital to help solve unemployement

Informal sector vital to help solve unemployement

JAKARTA (JP): A noted sociologist has underlined the
importance of boosting the role of the informal sector so as to
help solve the problem of unemployment, especially during the
current monetary crisis.

Paulus Wirutomo of the University of Indonesia said boosting
the role of the informal sector combined with the government's
labor-intensive program was the most obvious thing to do in
coping with the crisis.

He said labor-intensive funds could be allocated for operating
small shops, kiosks or sidewalk stalls, which eventually could
absorb more workers.

"Labor-intensive projects could be formed in many ways.
Physical work such as dredging rivers, cleaning gutters and river
normalization are very useful in protecting Jakarta's
environment.

"Those works are productive in a way that can save Jakarta
from worsening floods," he said.

But mere physical work is not enough, he said, adding that
more workers, especially the unskilled, were being laid off.

Paulus warned of the possibility of a larger number of jobless
workers entering the city from Jakarta's outskirts of Tangerang,
Bekasi, Bogor and Cikarang.

"They probably are residents of Jakarta but work outside the
city. Most of them are workers in factories on the outskirts of
the city.

"Thousands of them, including non-Jakartans, will probably
come in throngs trying to find a living here. It's going to be a
heavy burden on the city."

The Jakarta office of the Ministry of Manpower has approved
the laying off of 16,481 workers from 98 companies since January,
and the number is likely to continue rising as the recession
deepens.

Data from Tangerang's Federation of All-Indonesia Workers
Union (FSPSI) shows that 21,700 workers have been laid off by 80
companies in Tangerang.

The 80 companies, most of which are shoe and ceramic
manufacturers, were reportedly on the verge of bankruptcy due to
a scarcity of orders and the exorbitant prices of imported
materials.

Sabar Sianturi, head of the Jakarta manpower office, said the
administration had done all it could to minimize the number of
layoffs, but most companies were having a hard time keeping
workers on.

"We're sorry about the situation but many of these companies
found that business was virtually dead," Sianturi said.

Not all layoffs are reported to the administration, although
by regulation a company must have its approval first.

Sianturi said most of the affected workers had worked for
companies in the trading, construction, garment and textile,
electronic, food and beverage, and pharmaceutical sectors.

Meanwhile, the chairwoman of the Indonesian Consumers
Foundation, Tini Hadad, said the unemployment problem could only
be solved if there was equal distribution of the fruits of
development.

"Jakarta has become the center of every major activity in this
country. From political affairs to economic affairs, all are
centralized here.

"Many industrial estates are built on the outskirts of
Jakarta. Why not build the in other provinces outside Java ... so
there would be equal development?" she asked.

She said it would be little wonder if the city was flooded by
unemployed workers during these hard times. (edt)