Jakarta seeks 60% of expatriate levy

Jakarta seeks 60% of expatriate levy

Damar Harsanto, Jakarta

As no clear policy exists on the allocation of foreign workers
levies, the administration has demanded that the central
government channel more than half of the levy's revenue to help
the capital finance four training centers.

"We want a 60 percent share of the revenue (from the levy),
since there is no clear policy on the use of the funds," Jakarta
Manpower Agency head Ali Zubeir said on Monday, on the sidelines
of a general session at the City Council finalizing a revised
manpower bylaw.

Ali said the agency had sent a letter in May via the Ministry
of Manpower and Transmigration to the Ministry of Finance, as
well as copies to the Supreme Audit Agency and the Ministry of
Home Affairs, to ask for a greater share of the fund.

"We have yet to receive any response from the finance
ministry," he added.

Ali said the money would be used to help finance the
operations of four training centers in four municipalities.

Around 7,000 foreign professionals are registered in Jakarta.
The agency hopes to secure at least Rp 45 billion (US$5 million)
of the Rp 72 billion in annual levies collected from the
expatriates.

The government levies companies US$100 monthly per foreign
employee, which is transferred directly to the finance ministry
for disbursement to provincial administrations to be used toward
"national human resources development".

Critics have urged the government to come clean about the
fund's allocation and actual use.

Ali said the Jakarta administration had received Rp 11 billion
of the levy's revenue from the finance ministry, over double last
year's Rp 5 billion. He said, however, that he was unaware of the
legal basis by which the ministry channeled the fund.

Deputy Governor Fauzi Bowo said the city-run training centers
were poorly maintained, as 80 percent of their operational costs
were being covered by cash-strapped budget.

"We want to raise the quality of the training centers so that
they produce more qualified workers who can face stiffer
competition. Of course, we hope the government will take part in
the effort to improve the quality of our centers," he said.

During the Monday session, all 11 factions of the council
accepted the new bylaw.

The bylaw stipulates that a company with foreign employees
must report to the manpower agency when extending their work
permits. It also rules that such companies must appoint an
Indonesian employee to accompany the expatriate on the job to
ensure technology and skills transfer to local employees.

Companies that violate the bylaw may face a maximum prison
sentence of six months or a Rp 5 million fine.

The bylaw comes amid many companies' complaining about the
complicated procedures and red tape involved in legitimizing
foreign hires.

The Jakarta Post reported earlier that at least nine documents
were required for companies to employ foreign professionals.

Manpower ministry data for 2003 shows that 16,662 foreign
professionals were registered in the country, a sharp decline
from 25,713 in 2002.