Indonesian Political, Business & Finance News

Latief denies monopoly in sending of workers overseas

| Source: JP

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)

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