RI 'unprepared' for labor market competition

RI 'unprepared' for labor market competition

The Jakarta Post, Jakarta

Indonesian workers are unprepared for competition in regional
labor markets among Association of Southeast Asian Nations
(ASEAN) members, a business expert says.

Prasetiya Mulya Business School Dean Sammy Kristamuljana told
the first Indonesian Business Conference on Wednesday that on
paper the concept of cross-border labor competition sounded
great.

"However, we may suffer badly since we are not ready for the
competition, especially in the service industry," he said.

Based on the World Trade Organization (WTO) rulings, Indonesia
should have liberalized its labor markets in 2003. However,
Minister of Manpower and Transmigration Fahmi Idris said on
Monday the government would to start opening the door to job
seekers from countries grouped in ASEAN next year, and in 2008 to
those from outside the association.

Kristamuljana said the lack of competitiveness of Indonesians
in the labor market was illustrated by the employment of several
managers from other countries, including the Philippines, in
major Indonesian companies such as those belonging to the Salim
group.

He said most opportunities for Indonesians to work in other
ASEAN countries were currently limited to blue collar workers.

"These type of jobs don't last long as they can be terminated
at any time," he said.

Indonesia needed to work hard at preparing skilled workers and
managers to compete in the global market, he said. Universities
and government institutions needed to make concerted efforts to
increase the nation's skill set.

"The government may help in terms of financing and
universities in terms of the quality of education."

Kristamuljana said his observations showed that many
graduates of business and management schools were not making much
effort to match their acquired knowledge with the conditions at
their workplaces.

Meanwhile, the executive director of Prasetiya Mulya Business
School, Djisman Simandjuntak, said that in order to improve
competitiveness in the era of globalization, Indonesia needed to
develop good corporate governance (GCG) practices.

However, collusion and nepotism continued to hamper their
development, he said.

"Good corporate governance has a better chance of prevailing
under competition rather than under collusive or nepotistic
environments."

Simandjuntak said the basic requirements of good governance --
transparency, accountability, fairness and technology disclose --
needed to be achieved first.

"We are far behind Malaysia and Thailand in applying GCG," he
said. -- (004)