Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Indonesia News  >>   Labour  >>   Indonesian workforce 'unable to fill available jobs'
NEWS UPDATES Asean Affairs    7 November 2012 

Indonesian workforce 'unable to fill available jobs'

07-Nov-2012

Indonesia must improve the quality of its local human resources so that more unemployed people can find jobs amid robust economic growth, a senior official says.

Deputy Finance Minister Mahendra Siregar told reporters yesterday that the poor quality of the local workforce meant that people were unable to find jobs in the growing industrial sector.

A report from the Central Statistics Agency (BPS) published this month said that unemployment dropped by only 460,000 in August on a year-on-year basis, despite growth of at least 6 per cent recorded in the same period.

Labour absorption to date has been far lower than government estimates, which have assumed that every 1 per cent of economic growth can create 450,000 jobs.

Gadjah Mada University economist Tony Prasetiantono said that the disparity between government assumptions and realised growth could be attributed to the central government's failure to develop labour-intensive sectors properly.

According to Prasetiantono, growth has been mostly driven by sectors that were not labor intensive and also required high-quality human resources. Examples of those sectors are the financial services, telecommunications and aviation sectors.

Data from the BPS showed that most of the workers in Indonesia were poorly educated.

Around 53 million workers in Indonesia, or 48.63 per cent of the workforce, have only finished elementary school. Only 10 million workers in Indonesia have a diploma or bachelor's degree. Most workers continue to work in agriculture.

However, although the agricultural sector absorbs most of the nation's workers, its growth has been relatively mild compared to the financial and service sectors, which require workers who are better educated and technologically oriented.

Based on BPS data, the agriculture and industrial sectors contributed 4.80 per cent and 5.86 per cent to 6.29 per cent growth in the first three semesters of 2012, while the financial and the telecommunications sectors contributed 7.41 per cent and 10.48 per cent, respectively.

"The government should have been able to push for more development within the manufacturing sector and open new agricultural areas, like in Papua," Prasetiantono said.

In addition, Prasetiantono said the government should start accelerating infrastructure development by launching new projects. "Infrastructure projects are usually labor-intensive as well," he said.

Separately, Aviliani, an economist from the Institute for Development of Economics and Finance, said that structure development had to be accelerated by the government within the next two years.

"As of 2014, the government is planning to implement numerous export bans to boost industrialisation in the country. Industrialisation will surely absorb more manpower and create new jobs, but it will not happen if we fail to properly develop our infrastructure to lure investors to invest here," she said.

"We can only achieve the quality growth that we have been dreaming of by properly developing infrastructure, which will create massive multiplier effects in society," she added.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories    7 November 2012   Subsribe Now !
• ASEM to adopt Asean's concept paper on moderates   Subcribe: Asean Affairs Global Magazine
• Europe presses Asia to open economies Asean Affairs Premium
• China calls for Asia-Europe deeper cooperation on
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• SCG Group seeks Philippine support for sustainable development
• Thaksin changes itinerary 'to protect' his red-shirt supporters
• Indonesian workforce 'unable to fill available jobs'
• European defence expertise for Malaysia
• Aviation to Automobiles: Tony Fernandes plans to produce sports vehicle  
 
Asean Analysis              7 November 2012
Advertise Your Brand
• Asean Analysis- November 7, 2012  
• Asean Weekly- October 26, 2012 Sponsor Our Events

Asean Stock Watch     7 November 2012 

 
• Asean Stock Watch- November 7, 2012

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com