Minister admits govt cannot cope with unemployment

JAKARTA (JP): The Ministry of Manpower has admitted it has little power to stem the increasing tide of unemployment because it has been forced to postpone many of its development projects.

Minister of Manpower Fahmi Idris said on Monday that many of his ministry's planned development projects had been postponed due to the economic crisis.

The ministry will be unable to reach its target of spending 50 percent of its 1998/1999 fiscal year budget for development projects because of the project delays, he said.

"How can the nation cope with unemployment if the economic crisis and political turmoil continue to worsen?"

Unemployment has shot up 100 percent from nine million in July last year to 18 million this month.

Ministry of Manpower's Secretary-General Suwarto told legislators in a hearing that the ministry had been able to spend only 26 percent of its total Rp 120 billion budget to finance 118 projects.

He said that he had yet to know how effective the development projects had been in easing unemployment because he had no data on how many workers had been absorbed.

The ministry had originally allocated 50 percent of its budget, or Rp 58 billion, to finance 57 training programs, while 35 percent of the budget had been earmarked for labor placement and 15 percent for labor protection. Suwarto also said that the ministry was overseeing nine training projects worth US$175.5 million, funded through foreign assistance.

In an effort to employ recently laid-off workers, the ministry has also been managing a Rp 3.1 trillion program to create labor- intensive projects aimed at absorbing 1.8 million skilled and unskilled workers.

"All (labor-intensive) projects that started in May and June were temporarily stopped because of rescheduling and resumed again in August and September," Suwarto said.

Yudo Swasono, chief of the center for research and development planning at the ministry, said he feared sporadic looting and unrest would continue since the crisis had yet to show signs of easing.

The minister also answered questions concerning the proliferation of new labor unions throughout the country.

He said seven unions were currently registered with the ministry: The All Indonesia Workers Union (FSPSI), the Indonesian Prosperous Labor Union (SBSI), the Brotherhood of Indonesian Moslem Workers (PPMI), the Federation of All Indonesia Democratic Unions (FSBDSI), the Federation of Indonesian Independent Unions (GASPERMINDO), the Indonesian Moslem Union (Serbumusi) and the Marhaen Labor Union (KBM). Official recognition of the unions will depend on the country's new labor law. (rms)