Latief blasted over policy on workers

JAKARTA (JP): Minister of Manpower Abdul Latief came under fire yesterday during a hearing with the House of Representatives for some of his restrictive policies governing the Indonesian manpower supply trade.

The House's Commission VI, which deals with manpower affairs, questioned Latief's decision to establish PT Bijak, a company under his charge, which was supposed to bring some order into the lucrative but often troublesome business.

They also attacked the minister's decrees, issued in February, which compelled manpower supply companies to raise their paid up capital and deposit a huge sum at a state bank as a bond to bail out workers who might be stranded overseas.

The legislators, echoing the complaints of many manpower supply companies, said the establishment of PT Bijak and the tight capital ruling threaten the existence of the smaller suppliers.

Latief responded that PT Bijak, which is incorporated as a subsidiary of the government workers' insurance company PT Astek, was intended to modernize the business of sending workers overseas.

He pointed out that there are currently 320 manpower supply companies registered with his ministry but only half of them were active while the rest have been struggling because of poor management and lack of capital.

"Indonesia needs modern and strong companies to be able to compete in the international market," Latief said.

He gave his word that PT Bijak would not take over the role of the manpower supplier companies nor did it intend to monopolize the business. Such fear is unfounded and exaggerated, he said.

The role of the state company's will be to provide management and financial assistance to manpower companies in the hope of improving their level of professionalism, he said.

He pointed out that it was the lack of professionalism in the past that caused some Indonesian workers to be stranded abroad with no one to turn to, citing the case of 350 Indonesian women in Saudi Arabia and similar incidents in Malaysia.

"They've got to show more responsibility in handling the business," he said.

The minister said Indonesia needs at least 300 strong supplier companies to meet the target of sending 12.5 million skilled workers overseas in the next five years.

The number of Indonesian workers sent abroad last year reached nearly 950,000. Indonesia earned US$3.8 billion from money sent home by workers overseas. (rms)