The performance of the Indonesian Association of Commercial

The performance of the Indonesian Association of Commercial Banks (Perbanas) drastically dropped following the onset of the economic crisis in mid 1997. The crisis forced the government to bail out banks grouped within Perbanas.

Perbanas, however, has begun to change. The association made three main decisions during its 15th congress last week.

First, Perbanas will not only include private commercial banks but also other commercial banks as well. That is why the organization has changed its name from the Indonesian Association of Private Commercial Banks to the Indonesian Association of Commercial Banks.

The move was made following the acquisition of a number of major Indonesian banks, such as Bank Danamon, Bank Central Asia (BCA) and Bank Niaga, by foreign parties.

Second, Perbanas is committed to improving the function of banking intermediation in a bid to speed up Indonesia's economic recovery.

Third, Perbanas is also committed to implementing the principle of good corporate governance and to preventing money laundering.

Perbanas should thus team up with other concerned agencies to carry out the three decisions.

Last but not least, Perbanas should revive public confidence in the country's banking industry.

-- Bisnis Indonesia, Jakarta

Unemployment and poverty

State Minister for National Development Planning Kwik Kian Gie revealed in a recent seminar figures for the labor force, job opportunities and unemployment.

According to Kwik, who is also chairman of the National Development Planning Board (Bappenas), the country's unemployment in 1996 hit a record 4.3 million. In 2002 -- five years after the economic crisis had hit the country in 1997 -- the figure reached 9.13 million, not including underemployment of 28.9 million.

Unemployment in 2003 is expected to reach 10.13, and 10.83 million in 2004, he said. With economic growth of 5.3 percent (open) unemployment is expected to reach 11.9 million in 2005.

Kwik said that by 2008 the situation will still not have improved.

The figures revealed by Kwik also showed that Indonesian labor was still dominated by elementary school graduates. Therefore, labor-intensive projects remain the answer to national employment, instead of high-tech jobs.

Annually, 1.1 million to 1.75 million job vacancies exist in the country; however, 2.1 million to 3.16 million people seek jobs every year. Where will those who fail to get a job go?

We all acknowledge that unemployment is a source of suffering and other social problems, including violence as well as drug abuse.

Whenever political competition, such as a general election, approaches, we are made aware of a commitment to a national platform and an agenda to deal with unemployment. Poverty eradication and creation of job opportunities are really a national priority, because only with seven-percent growth will unemployment be reduced.

-- Kompas, Jakarta