RI faces two million more jobless post-Oct. 12

RI faces two million more jobless post-Oct. 12

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Indonesia may get hit with another two million jobless people,
as the Oct. 12 terrorist strike in Bali had reduced job
opportunities, the government said on Thursday.

Coordinating Minister for Social Welfare Jusuf Kalla said that
Indonesia's unemployment rate could jump by as much as two
million people in the next few months as layoffs, mainly in the
tourism sector, were imminent.

"We're predicting the worst, which is, that up to two million
people might lose their jobs considering the declining tourist
arrivals," Kalla told reporters following a Cabinet meeting. "In
Bali alone unemployment may rise by 600,000," he said.

The bombing at two of Bali's busiest nightclubs claimed nearly
200 people, mainly foreigners, prompting fears that the bomb was
the handiwork of the alleged terrorist group, al-Qaeda.

A number of Western governments and Japan responded by issuing
harsh travel warnings for Indonesia, despite repeated safety
assurances by officials here.

Bali accounts for about one third of Indonesia's average
annual tourism revenue of US$5 billion.

A World Bank report on Wednesday predicted tourism arrivals
would plummet by 20 percent over the next year, citing a similar
incident in Egpyt when the killing of tourists at the tourist
site Luxor in 1997 dragged tourism down by 17 percent.

Kalla added that handicrafts makers in neighboring East and
Central Java would also feel the pinch as they supply some 70
percent of souvenirs sold in Bali.

Furthermore, analysts said the impact would go beyond Bali and
its supporting industries, since the holiday island is seen as
the gateway to other tourist spots around the country. This means
tourists who normally visit Bali first before traveling to other
islands here may not come at all.

Indonesia's unemployment total stands at about 38 million.

The rise in unemployment could also come from an overall
weaker economic outlook after the Bali bombing.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Jakti said the government needed "emergency funds" from foreign
donor countries to support the economy well into 2003.

"We have to call for an ad interim meeting of the Consultative
Group on Indonesia (CGI) immediately, as we need extra money to
stimulate economic growth for the next six months," he said.

Dorodjatun was referring to Indonesia's main creditor
countries under the CGI, which met earlier this month to discuss
a possible loan of "several hundreds of millions of dollars" in
helping it cope with the Bali fallout.

To dispel the security fears at Indonesian tourist sites,
Kalla said the government would ask for additional security
measures in and around tourist sites.

The government is pinning its hopes on more domestic
travelers to offset the foreigners, and Kalla said to entice
people to travel it was planning to issue a regulation to enable
longer weekends.

Several holidays, he explained, could be moved to either
Friday or Monday to create longer weekends.

Coordinating Minister for Political and Security Affairs
Susilo Bambang Yudhoyono said security around strategic
installations, public utilities and transportation hubs remained
tight.

"The antiterror desk, which will coordinate, monitor and
synchronize all government policies on terrorism, would be
activated before Nov. 15," Susilo added.