RI's open unemployment reaches 6.3 million: Minister
RI's open unemployment reaches 6.3 million: Minister
JAKARTA (JP): The government warned yesterday that
unemployment was getting out of hand with rising open
unemployment and a steady rise in the number of unemployed
university graduates.
Open unemployment last year was estimated at 6.3 million
people or 7.24 percent of the country's 86.4 million-strong
workforce, Minister of Manpower Abdul Latief said yesterday.
"The unemployment rate increased from 3.17 percent or 2.3
million people in 1990," Minister of Information Harmoko quoted
Latief as saying yesterday to a limited cabinet meeting on the
economy.
Harmoko said after the monthly meeting that the country's
workforce increased 16.91 percent to 86.4 million in 1995 from
73.9 million in 1990, while the number of job-seekers (openly
unemployed) increased to 6.3 million from 2.3 million.
He said 218,473 of the unemployed in 1995 were university
graduates, up 1,293 on the previous year.
"Only 36 percent of our university graduates annually have
been absorbed by the labor market," he said.
Latief defined openly unemployed as those working less than an
hour a week.
"The unemployment problem has therefore assumed a more
dangerous level," Harmoko said, adding that the provincial
governors had been instructed to support the national labor plan.
Incentives
The government will provide financial incentives to encourage
private firms to employ more people, and will temporarily employ
university graduates in government projects, he said.
Harmoko said the government would encourage university
graduates to create their own businesses and work in
cooperatives.
President Soeharto, he said, had asked the coordinating
minister for people's welfare and the minister of education and
culture to formulate an education system capable of turning out
graduates with marketable trades.
"This is to anticipate working conditions in the 21st century.
If we fail to do this we'll see intellectual unemployment,"
Soeharto warned, as quoted by Harmoko.
On key economic indicators, Harmoko said last month's
inflation rate was 0.4 percent, compared to 0.04 percent
deflation in September.
He said cumulative inflation in the first ten months of this
year was 5.35 percent, compared to 7.34 percent during the same
period last year.
The money supply at the end of September reached Rp 59.7
trillion (US$25.7 billion), up 12.3 percent on the end of March,
he said.
Harmoko said Indonesia's trade surplus increased 56.7 percent
in August to $937.9 million from $508.5 million in July. In
August, total exports were valued at $4.31 billion and imports at
$3.38 billion.
New projets
The cabinet meeting, Harmoko said, was also briefed on plans
to build three new urea fertilizer plants in West Java, East
Kalimantan and Aceh next year to meet farmers' rising demand.
The meeting was also informed of President Soeharto's upcoming
visit to Rome to attend the Food Summit from Nov. 13 to Nov. 17.
The summit is being organized by the United Nations Food and
Agriculture Organization.
"Soeharto's presence will give more weight to the meeting in
view of his internationally-recognized success in leading
Indonesia toward rice self-sufficiency," Harmoko said. (bnt/vin)