Sat, 03 Jan 1998

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)