Manpower suppliers ask help from banks

Manpower suppliers ask help from banks

JAKARTA (JP): A group of manpower supplier companies are
turning to banks to help them out of their current financial
predicaments.

Executives of KINAS, the association of companies supplying
Indonesian workers to Singapore and Malaysia, discussed with
officials of Bank Bumi Daya and BNI Bank the prospect of
providing advances to prospective workers.

Kinas Chairman Anthon Sihombing said such a loan plan would go
a long way towards restoring order in the business of sending
workers abroad, which is still plagued by embezzlement and other
irregularities.

Anthon said in the absence of loans many potential workers
have been widely exploited by unscrupulous brokers out to take
advantage of their weak positions.

The money would also pay for the costs of recruitment and
basic training incurred by the companies sending the workers, he
said, pointing out that this could cost as much as Rp 2 million a
worker.

At present, most of the companies provide workers with the
necessary advances until they receive their first salary.

Anthon said this is straining the financial resources of most
companies, especially now with the government tightening
regulations in the business of sending workers overseas.

Under the new regulations for example, each company must have
a paid up capital of Rp 450 million. It must also build its own
training center. The Ministry of Manpower, which oversees the
activities of these companies, has also ordered all the manpower
supplier companies to re-register under the new regulations.

Anthon proposed that banks pay for all the workers costs for
recruitment and training and also transportation to the country
of destination.

He said many Indonesian workers in Singapore and Malaysia fell
victim to loan sharks who generally pay all the initial
transportation costs but later extract heavy payments, sometimes
as much as half of the salaries for several months.

Many workers end up paying as much as Rp 5 million, he added.

No commitments

Executives of Bank Bumi Daya BNI Bank declined to make any
commitment during the talks, saying that they were waiting until
all the companies had renewed their operating licenses.

The government has enlisted the two banks, along with BTN,
Bukopin and BRI, to manage the repatriation of funds from
Indonesian workers overseas.

Anthon, who was accompanied by KINAS Secretary General Idrus
in the press meeting, said the Association of Manpower Supplier
Companies, which counts on KINAS membership and travel agencies,
will hold a congress tomorrow to discuss ways on how to simplify
procedures of sending workers abroad and to design the annual
program for the 1995-1996 period.

The day-long meeting, which was to be officially opened by
Jakarta Governor Surjadi Soedirdja, will also hear addresses from
Minister/State Secretary Moerdiono and Jakarta Military Chief
Maj. Gen. Hendropriyono. (rms)