Latief denies monopoly in sending of workers overseas

JAKARTA (JP): Minister of Manpower Abdul Latief denied yesterday accusations by manpower supplier companies that the government was monopolizing the lucrative business of sending workers overseas.

Latief said recent government rulings were intended to weed out poorly managed companies, not to monopolize the business.

The Association of Indonesian Manpower Supplier Companies (IMSA) last week questioned the government's decision to establish PT Bina Jasa Karya (PT Bijak), a company under the Ministry of Manpower, to oversee the activities of its members.

Association members, already under strong pressure because of stiff competition, feared that Bijak would take away some of their business or give favors to certain companies.

IMSA said the presence of such companies and new government restrictions were "slowly killing" its members.

Many of the 300 manpower supplier companies listed at the ministry have ceased operation because they are bankrupt.

"The government has no plans to become a monopoly in the business of sending workers abroad," Latief told The Jakarta Post in response to the charges. "The establishment of PT Bijak is intended to make companies modern and more professional."

He said the presence of PT Bijak was part of the government's effort to improve the quality of Indonesian workers sent abroad.

Manpower supplier companies should improve their management rather than complaining about the regulations, he said.

Earlier this year, Latief ruled that all manpower supply companies must have a minimum paid up capital of Rp 375 million and deposit Rp 75 million, which will be used to assist workers who get stranded overseas.

Manpower supply companies are also required to build training centers for people they intend to send overseas. (rms)