Indonesian Political, Business & Finance News

Labor problems could cause social distress

| Source: JP

Labor problems could cause social distress

Debbie A. Lubis, The Jakarta Post, Jakarta

The presence of more than 300,000 returning workers from Malaysia
and the possible layoff of thousands of workers at home could
further magnify the already large problem of unemployment,
raising fears of widespread social problems ahead of the 2004
general election.

Imam B. Prasojo, a sociologist at the University of Indonesia,
said unemployment would likely cause social problems in the form
of crime, vigilantism, drug trafficking and sectarian and ethnic
violence.

"The tougher competition (for jobs) could force the unemployed
to take shortcuts to make money, and they will do anything to
survive the difficult situation," he told The Jakarta Post by
telephone here on Tuesday.

The exodus of more than 300,000 illegal Indonesian workers
from Malaysia will only aggravate the situation here, where about
40 million people are currently unemployed. And thousands of
workers in the manufacturing industry are facing mass layoffs
following a slowdown in orders from international footwear
makers.

Social unrest and white-collar crime may no longer be confined
to people in urban areas, because according to a 2001 national
survey 59 percent of the almost 99 million-strong workforce live
in rural areas.

Former manpower minister Bomer Pasaribu said on Tuesday
unemployment would trigger numerous social problems in the
immediate future, with the country's job market unable to absorb
the huge number of unemployed.

"This is an enormous problem for us. We already have 40
million unemployed people, and no significant economic growth,"
he said, adding that all this posed a serious problem that the
government had to solve.

Bomer, who is a labor activist and chairman of the Center for
Labor and Development Studies, predicted that by 2004 the number
of unemployed would increase to 43.5 million, or about 20 percent
of Indonesia's total population.

Included in the unemployment figures are those people who work
less than 35 hours a week.

Bomer also predicted economic growth would only reach 3.4
percent in 2004, a rather pessimistic outlook given the current
growth of 3.3 percent.

"The unemployed will only become burdens for their families,
society and the country. We will all have to bear the social
costs unemployment brings, like social unrest, smuggling, crime
and riots," Bomer said.

The unemployment rate, which has reached alarming levels, and
slow economic growth will certainly pose serious problems for the
people, especially as the general elections near.

"The next two years will be a crucial time for the nation
because of the social and economic problems," he said.

Meanwhile, Adang Farid Kantaprawira, the director general of
labor training and domestic placement at the Ministry of Manpower
and Transmigration, said Indonesian workers deported from
Malaysia would not pose a serious problem because they were small
in number.

"They can go back to their places of work in Malaysia after
they meet all the conditions set by the Malaysian government," he
said.

Adang said cooperation among government institutions, the
public and businesspeople was needed to address the problem of
unemployment.

"We have some ideas to create job opportunities, but we don't
have the funds to help create jobs," he said.

View JSON | Print