RI firms too dependent on foreign managers

JAKARTA (JP): The educational system, which has failed to produce citizens with strong managerial skills, is to blame for the reliance of Indonesian firms on foreign expertise, a prominent executive believes.

"In order to compete, the employment of expatriate managers is needed but in the long run, our businesses dependence on foreign managers will be counterproductive," the president of PT Bakrie & Brothers, Tanri Abeng, said at a workshop on human resources development yesterday.

He said Indonesia needs to increase the number of local managers by making changes in the educational system.

He said that contributing to the education gap are the protectionist measures introduced by the government in the past few years, which have allowed Indonesian managers to be less creative and innovative.

The economy's continuing dependence on agriculture in the last few decades has also played a role in the slow promotion of managerial skills.

"This situation has forced new companies to hire expatriates or to hijack experienced managers from other firms at high costs," said Tanri, who himself was transferred from a foreign joint venture to Bakrie & Brothers a few years ago at a cost of about US$1 million.

Tanri suggested that Indonesia promote the establishment of education and training programs to create skillful managers.(yns)