KPEN calls MPR to help solve unemployment problem

KPEN calls MPR to help solve unemployment problem

A'an Suryana, The Jakarta Post, Jakarta

The National Economic Recovery Committee (KPEN) called on
lawmakers to seek ways to help resolve the country's pressing
economic difficulties, particularly unemployment.

"Although there are signs that certain (macroeconomic)
indicators are improving, there are still many economic problems
that must be addressed," KPEN chairman Sofjan Wanandi told
reporters at a media conference.

The People's Consultative Assembly (MPR), the country's
highest lawmaking body, is holding a 10-day Annual Session to
formulate ways to boost the country's fragile democracy. One of
the main items on the agenda is the amendment to the
Constitution.

But Sofjan said that lawmakers should also make solving
economic problems a priority.

He told The Jakarta Post that KPEN supported plans by
lawmakers to issue a special MPR decree on economic recovery, but
quickly added that the decree must stipulate clear measures and
specific targets for the government in fixing the economy,
particularly on how to resolve the unemployment problem.

Economists previously criticized the MPR decree draft as being
"too general and lacking in clear-cut guidelines".

The decree on economic recovery is meant to provide guidelines
for the government to accelerate economic recovery.

Sofjan said that the country's economy, which contracted by
nearly 14 percent in 1998 in the wake of the political and
economic crisis, was still moving at a slow pace and this was not
enough to significantly absorb the millions of people put out of
work by the crisis.

He explained that while the cash-strapped government could not
be expected to boost spending to push economic growth, other
economic movers, like export and investment, were languishing due
to various uncertainties, such as labor disputes and security
problems.

"The impact of the slow economic recovery process has limited
job creation and spurred a rise in unemployment," Sofjan said.

"Every year, there are 2.5 million new people looking for
work. Unfortunately, the current 3 percent economic growth can
only absorb 1.5 million people," he said.

According to one estimate, the number of unemployed in this
country is about 40 million. This figure will rise with the tens
of thousands of workers expelled from Malaysia.

"Unemployment is a very serious problem. This could create
instability," Sofjan said.

He urged the government to create a conducive climate for
investors and businesses to help resolve the unemployment
problem.

He said it was high time that lawmakers create the momentum
needed to accelerate an economic recovery.

KPEN also urged the government to immediately launch measures
to create legal certainty, curb corruption and boost security to
give investors peace of mind.

"The investment bill must be deliberated and passed into law
immediately," it said.

He added that investors concerned about labor rulings that
overly protect workers at employers' expense must be quickly
addressed to prevent investors from moving out of the country.

He added that rampant smuggling, which had created serious
problems for local businesses, must also be curbed.