Minister admits govt cannot cope with unemployment
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)