Indonesian Political, Business & Finance News

Latief blasted over policy on workers

| Source: JP

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)

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