New firm to supply workers to S'pore, KL

JAKARTA (JP): Twenty-five companies that have been supplying Indonesian workers to Singapore and Malaysia have merged into a single company to give them a strong edge in the highly competitive business.

The 25 companies were formerly members of KINAS, an association of manpower supplier companies specializing in Singapore and Malaysia.

Not all members of the association joined the new company, called PT KINAS. Approximately 40 decided to stay independent.

KINAS Chairman Anthon Sihombing said the move is intended to give the new company more muscle and stronger investment power, thus enabling it to send more skilled workers overseas. The new company will not only concentrate in Singapore and Malaysia, but will also tap the potential of other markets, including Middle Eastern countries.

Currently, the association's members send an average of 800 Indonesian workers to Malaysia and Singapore each month, but business is expected to pick up. Anthon predicts a monthly outflow of 4,000 and 5,000 workers per month as feasible.

In addition to the 800 workers sent to the neighboring countries each month, hundreds of Indonesian workers are believed to enter Malaysia illegally each month, bypassing the arduous bureaucracy and hefty fees they must pay to agents.

The government has decided to phase out the sending of unskilled workers, including domestic help, who are in great demand in Singapore and Malaysia.

The Ministry of Manpower, which oversees the activities of the manpower supplier companies, has also tightened the regulations, including setting a high minimum capital requirement, a move which some manpower supplier firms say threatens the existence of the smaller companies.

"We have no choice but to merge," Anthon said.

Effective Aug. 1, all manpower supplier companies must have a minimum capital of Rp 375 million ($180,000). They must also deposit Rp 75 million at a state bank as a bond, which will be used to bail workers out if they get stranded overseas. Under the new regulation, manpower supplier companies must also establish their own centers to train and equip Indonesian workers with skills before they are sent abroad.

Anthon said KINAS fully supports the government's measures, although they have hurt some of the members. With the merger, "we hope to become stronger, bigger, more professional and more competitive." (rms)