Indonesian Political, Business & Finance News

Two million lose their jobs during crisis: ABRI

| Source: JP

Two million lose their jobs during crisis: ABRI

JAKARTA (JP): The Indonesian Armed Forces (ABRI) estimated
yesterday that as many as two million people have lost their jobs
since the monetary crisis began last July.

Armed Forces spokesman Brig. Gen. A. Wahab Mokodongan said
such a crisis could destabilize the country, especially when
people were easily provoked by speculation and rumors.

"However, ABRI members are ready to crack down on any
security-disturbing activities," Wahab told journalists
yesterday.

He said ABRI would always be prepared to face the worst
situation, particularly if it could disturb national stability.

In the middle of the worst ever monetary crisis, the country
is now preparing for the five-yearly general meeting of the
People's Consultative Assembly (MPR) next March, which will elect
a president and a vice president and also endorse the 1998/2003
State Policy Guidelines.

When asked about the accuracy of his estimations, Wahab said
it was made under the best calculations possible from various
reports.

"It was based on reports that many companies and industries
had recently laid off their workers," he said.

Estimations on the number of people laid off vary, but most
people say the figures are well above one million. According to
the government, the one million figure was too high.

Last Tuesday, the Indonesian Chamber of Commerce and Industry
(Kadin) estimated that at least one million workers had lost
their jobs.

The head of the Jakarta Chamber of Commerce and Industry,
Yulia Hasan, said last week that 2.4 million workers had lost
their jobs in Jakarta and the surrounding towns.

But Minister of Manpower Abdul Latief brushed aside these
figures, saying the number was much lower. He promised to
intensify training programs to help Indonesian workers fill many
positions occupied by foreigners.

Wahab urged Indonesian companies to try not to dismiss their
employees and workers despite the economic crisis.

"They can still employ their workers on a shift basis," he
said. "Each shift works daily according to schedule by turns."

Analysts have warned that unemployment would rise through the
year as companies struggle with big debts in foreign currencies,
despite a multibillion dollar economic rescue package put
together by the International Monetary Fund (IMF).

President Soeharto is scheduled to announce the government's
economic strategy, when he delivers the 1998 state budget before
the 500-member House of Representatives (DPR) Tuesday evening.

One contributing factor to the rupiah's depreciation has been
the uncertainty surrounding Soeharto's health.

The rupiah fell dramatically against the U.S. dollar last
month after doctors ordered the President to rest following a
long overseas trip.

The rupiah fell further to its lowest ever point after rumors
that the President had died and there would be a coup attempt.
None of the rumors were true. (imn)

View JSON | Print