$Unique_ID{bob00245} $Pretitle{} $Title{Indonesia Manpower and Employment} $Subtitle{} $Author{Department of Information Republic of Indonesia} $Affiliation{Embassy of Indonesia, Washington DC} $Subject{transmigration areas development housing land year workers employment number repelita} $Date{1990} $Log{} Title: Indonesia Book: Indonesia 1990 an Official Handbook Author: Department of Information Republic of Indonesia Affiliation: Embassy of Indonesia, Washington DC Date: 1990 Manpower and Employment The Guidelines of State Policy stipulates that manpower development as part of human resources development is designed to raise the human status, dignity and capability as well as self-confidence. Manpower development is a comprehensive program covering all sectors and regions in order to expand and disseminate employment opportunities and improve the quality and capability of labor as well as to protect the labor force. It is also said that manpower policies, especially on the expansion and effective employment of the labor force, must be continued with the emphasis on establishing a balance between agriculture and other sectors, particularly industry. Improvements should be made in the labor information system, which covers the supply and demand for manpower. An appropriate mechanism should be created for the effective employment of manpower in various sectors and regions. Advantage should be taken of the overseas labor market without sacrificing the prestige, dignity and reputation of the country and people, nor the protection of the workers themselves. Special attention should be paid to the question of a junior work force. Within the framework of improving the integrated planning of manpower, the targets pursued to cover:a) expansion of employment opportunities in a reasonable proportion; b) development and advancement of the work force especially through education and training; c) promotion of labor productivity and labor relations inspired by Pancasila and the 1945 Constitution; d) enhancement of the function of the labor market and; e) decrease of the population growth rate and improvement of manpower quality. The annual growth rate of Indonesia's work force based on the 1985 Inter-censal Population Survey stood at 4.0%, which made expansion of employment opportunities a crucial issue to be dealth with effectively. This relatively high growth rate has aggravated the labor problems which the country is currently facing. Since the essence of development is the development of the Indonesian man of integrity and manpower is one of the decisive factors for the success of development, and the welfare of man as the yardstick for his prosperity, the Government continues to play an important role in the labor market by providing employment services; through organizing trainings especially vocational trainings, conducted by the government or private institutions as well as by the employers themselves and by policies to promote regional development and labor mobility, in order to minimize unemployment and improve industrial mechanism/relations; and through legislation relating to health and safety at work. EMPLOYMENT During REPELITA IV (1984/85-1988/89), the number of job-seekers tended to increase annually, except in 1985/86. In 1988/89 the number of job seekers was 1,646,616 being an increase of 7.1 per cent as compared to that in 1987/88. The number of job seekers during fiscal year 1984/85 to 1988/89 was consecutively 1,102,365, 866,778, 1,338,895, 1,537,167, 1,646,616. In 1988/89 the demand of workers reached 184,428 occupations which is an increase of 1.3% as compared to the number in 1987/88, it means that during REPELITA IV the demand of workers rose by 8.4 per cent per annum, while the number of job-seekers who have been placed during REPELITA IV was consecutively 73,188, 82,505, 118,695, 136,328, 122,692 and in 1988/89 the number of job-seekers who gained placement was only 66.5 per cent of the total of job-seekers. The number of the Indonesian work force in 1988 was estimated at 72,175,367 made of 40,507,367 (56.1%) working in the agricultural sector; 5,996,467 (8.3%) in the industrial sector, 10,289,608 (14.3%) in the commercial sector; 11,205,045 (15.5%) in public services and 4,176,880 (5.8%) in other sectors. Meanwhile, the number of job seekers employed through the interregional employment scheme in fiscal year 1988/89 was 13,989 or a rise of 1,723 persons compared to that of fiscal year 1987/88, while those placed through the local employment scheme was 122,692 or a decline by 13,636 compared to that of fiscal year 1987/88. MODIFIED LABOR-INTENSIVE PROJECTS (PKGB) The Modified Labor-Intensive Projects (PKGB) are designed to provide employment to the unemployed and semi-unemployed in the poor and densely populated areas by giving priority to areas with limited natural resources, and poor economies. Particularly in the rural areas the implementation of these PKGB projects is meant to provide additional incomes and to arrest urbanization. The implementation of PKGB during fiscal year 1988/89 was carried out in 668 sub-districts, absorbing 94,956 persons. In terms of the number of sub-districts and persons employed during fiscal year 1987/88 it was respectively 191 and 33,363 with each worker earning Rp 1,000 per day. The results achieved through this project during fiscal year 1988/89 covered the improvement/construction of 1,667.6 kilometers of rural roads, improvement and construction of 154.3 kilometers of tertiary irrigation channels, opening up of new rice-fields, replanting, terracing, etc. totaling to 82.9 hectares and the construction of dykes, piers, etc. totalling 53.5 kilometers. Meanwhile, through the Presidential Instruction second-level regions development aid project scheme to build public utilities, about 536,198 persons have found employment for 100 working days during fiscal year 1988/89. In addition, under the reafforestation and replanting programs and expanding of employment opportunities, more than 5 thousand persons have been working for 100 days in fiscal year 1988/89 under the reafforestation program covering 12,919.0 hectares and 54,501.0 hectares under the regreening program. VOLUNTARY SERVICE PROGRAM The Voluntary Service Scheme (BUTSI) and on-the-job training scheme (KKN) which envisage the mobilization of university graduates and under-graduates, in particular the younger generation to become pioneers of renovation and motivators of development have continuously been encouraged. The placement of these educated volunteers in the rural areas is not only to foster their individual creative power, personality, idealism, discipline and skill but also to assist development implementation in the rural areas through their involvement in the planning of development at sub-district level. By the end REPELITA IV period (1988/89) the pattern of the Voluntary Service Scheme (BUTSI) was changed into the pattern for the guidance of skilled workers (BKTKT) with a view to the workers interested through fostering creative power, positive attitude and making motivation and skill growing steadily. The pattern for the guidance of skilled workers (BKTKT) intends to create job-opportunities. In fiscal year 1988/89 the number of BUTSI Volunteers who gained placements under the pattern of guidance of skilled workers (BKTKT) was 280 in 14 provinces. During REPELITA IV period implementation of the Voluntary Service Scheme was only 25.8 per cent involving 35,000 persons, because since 1986/87 up to 1987/88 no mobilization had been undertaken. FOREIGN WORKERS Based on Presidential Decision No. 23/1974 a specific policy is pursued on the employment of immigrant workers which stipulates 3 types of restrictions: 1. posts prohibited on account of the availability of Indonesia personnel; 2. posts permitted for a specified time, especially those which need specialist. In this regard, employed expatriate workers are obliged to train Indonesian workers to be able to replace them in due time; 3. posts temporary permitted, with regard to the confidence of the capital investors, for example the post of financial managers. In fiscal year 1988/89 the employment of imigrant workers was set for 25 types of business covering 4,494 functions. VOCATIONAL TRAINING Intensification of the vocational training has been more directed towards preparing young workers before joining the labor force and promoting the proficiency and work performance of those already employed within the context of adjusting them to advanced technology. Besides the intensification of the training program is also to transform man into investment of development. During REPELITA IV trainings in management and technology have been carried out. The government has also put considerable emphasis on the development of a skilled manpower pool and has set up a number of vocational training centers in urban areas and throughout the country as well. Training programs are aimed at preparing the unemployed for self-employment as well as producing responsible and efficient workers. To this end the National Training Board, has formulated a concept for the basic standard of training and proficiency qualifications to assist the training. The workers trained at the government vocational training centers, in REPELITA IV, during five consecutive fiscal years were 111,528, 110,610, 73,711, 66,870, and 56,192, while the number of those who followed training programs were 14,095 in 1988/89 organized by private companies in cooperation with the vocational training centers of the Department of Manpower. The trainings cover industrial, agricultural and entrepreneurial vocations. INDUSTRIAL SAFETY The Safety Act of 1970 provides safety measures at installations in factories against fire, industrial accidents, and defective building structures. It is mandatory for employers to provide their employees with self-protection apparatuses during their work so as to guarantee not only the safety of the product itself, but also the general safety of the factory. Indonesia's industrial safety measures require employers to provide health, cleanliness and lighting facilities in factories and work-places. Provisions must be made for first aid and medical facilities as well as maintenance of eating facilities on premises. Inspectors from the safety inspection office of the Department of Manpower as well as technical officials and experts appointed by the Minister conduct periodical checks to ensure that the factory's working conditions are in conformity with the existing regulations. In fiscal year 1988/89, health and safety at work control was conducted on 115 thousands companies. ACCIDENT AT WORK The implementation of the compensation scheme and employers prosperity is carried out through the employees' social insurance scheme (ASTEK). Employers in industries, mining, transportation, fisheries, and enterprises using electric power machinery or explosives are required to draw up compensation schemes to provide substantial payment to workmen injured in the course of their duties or to their dependents in the case of fatal accidents. All accidents must be reported to the regional office of the Department of Manpower within 48 hours, and a record of the Accidents must be kept by the employers. Workers in certain enterprises must be insured through the employees social insurance scheme (ASTEK), which is designed to assist employees in paying loss resulting from accidents, old age or death. In addition, a cash benefit in the form of an invalid pension must be provided by the employer for the permanently disabled employees. This guarantees a monthly allowance of 50 per cent of his earnings plus 20 per cents supplement to cover the costs of an attendant. An employee who is partly disabled is entitled to a monthly pension ranging from two per cent to 40 per cent of his earnings, depending on the degree of his disability. Medical expenses, including hospitalization, must be borne by the employer. However, should the employee refuse or discontinue treatment against medical advice, or leave the area, the employer is no longer liable for any payment. During REPELITA IV period, the number of cases related to insurance of accidents at work, old age savings and insurance of death tended to increase annually. In 1988, the number of such cases was 47,568 with a total compensation of Rp 13 billion, or a rise by 6,177 cases, and total compensation of Rp 2 billion compared to that of 1987. EMPLOYMENT OF CHILDREN AND WOMEN Indonesia's labor law forbids employment of women during the hours between 6 p.m. and 6 a.m. However, if any company for reasons of public interest or welfare, deems it necessary to employ female workers during these hours, permission must be requested from the head of the Labor Inspection Office. Expectant women workers are allowed maternity leave of 1 1/2 months before and after confinement. Meanwhile, young persons between the age of 14 to 17 can be employed as workers in factories but not in mines or work-sites which are dangerous or injurious to health. They can only be employed between the hours of 6 a.m. to 6 p.m. WAGE RATES Improving the welfare of employees living under the subsistence wage should be continued. The main target of the wage policy is directed towards those sectors still giving wages under the minimum level. Wage-rate guidelines are determined by the Minister of Manpower on the basis of the industrial sector and geographical location, following a review of input and materials from various sources. The statutory minimum wage in the private sector is decided by the Minister of Manpower. Companies are free to determine the wages and salaries of their employees beyond minimum wage. The minimum wage rate per day occured in West Nusatenggara amounts to Rp 650, and the highest in Batam Island amounts to Rp 2,450. BUSINESS HOURS AND HOLIDAYS The Indonesian labor law provides for a 40 hours working week, with a minimum of seven hours per day. When work is performed at night or considered dangerous to the employees health or safety, the work-time may not exceed six hours or 35 hours a week. Employees are entitled to a maximum leave of 12 working days with a full wages after 12 months of continuous service, which has to be used within six months, otherwise it will be forfeited. The main public holidays in Indonesia are as follows: New Year's Day, Hindu Religious Seclusion Day (Nyepi), Birth and Enlightenment Day of Budha (Waisak), Ascension of the Prophet Mohammad, Ascension Day, Idul Fitri, Independence Day, Idul Adha, Moslem New Year, Birthday of the Prophet Mohammad, and Christmas Day. TRANSMIGRATION DEFINITION OF TRANSMIGRATION The target of transmigration development is aimed to overcome the uneven distribution of population and manpower between islands and regions because of restricted agricultural land, fragmentation of authority and land-owner, expansion of agricultural plots at the coast of forest land, of unhealthy settlement, and various types of unemployment. Transmigration is the government's effort to resettle people from densely populated regions to sparsely populated areas, so as to develop both the region of origin and the new settlement areas within the framework of overall national development. THE ROLE OF TRANSMIGRATION Based on the 1969 and 1983 Agricultural Censuses, agricultural land in Java and Bali is decreasing, while the number of farmers tilling less than 0.5 ha of land kept growing resulting in an increase from 4,255,041 families in 1969 to 6,463,779 in 1983 or a rise of 52% in 14 years. Besides, the area of forest in Java has reached a critical point in that it cannot function effectively in maintaining and preserving 30% of the total land area. The decrease of agricultural and forest land may have a negative impact on the environment. Efforts in the field of transmigration development therefore has the purpose of removing the population and work force from densely populated Java, Bali, and Lombok in an attempt to ease the burden of those areas by way of resettling them to the other islands as Sumatra, Kalimantan, Sulawesi, Maluku, and Irian Jaya. For the areas with sparse population, transmigration implementation is designed to increase the production of the areas concerned expanding employment opportunities through the opening of new agricultural and production areas in the framework of developing human and natural resources. The islands of Sumatra, Kalimantan, Sulawesi, Maluku and Irian Jaya still have potentialities that can be developed for agricultural development efforts. Up to 1983, some 3.6 million hectares of land have been cleared for the expansion of land which is only about 3% of the total area of potential agricultural land put available. Development efforts in the field of transmigration has a twofold aim. Firstly, transmigration is to raise the standard of living of farmers who are determined to work hard in tilling their land. Secondly, transmigration should increase the region's income through the opening of markets for the products of the region concerned. Apart from that, removing people from densely populated regions to sparsely ones, will at the same time solve various population, social and economic problems. Transmigration is also an effort to assimilate the newcomers with the local community so as to strengthen the unity and integrity of the people. PLACE OF ORIGIN Transmigration involves two different regions i.e. the place of origin and the new settlement area. Designated as places of origin so far are: the Special Territory of the Capital City of Jakarta; West, Central and East Java; the Special Territory of Yogyakarta; Bali as well as West and East Nusatenggara. The new designated settlement areas for transmigration, i.e. the regions receiving new transmigrants are the provinces of the Special Territory of Aceh; North Sumatra and West Sumatra; Riau; Jambi; South Sumatra; Bengkulu; West Kalimantan, Central Kalimantan, South Kalimantan and East Kalimantan; North Sulawesi, South Sulawesi and Southeast Sulawesi; Maluku; Irian Jaya; and East Timor. TRANSMIGRATION POLICY Under the Fifth Five-Year Development Plan (REPELITA V), the target in the field of transmigration is to remove 550,000 heads of family coming from the islands with a dense population to areas with a sparse population. Priority is given to farmers who possess a very small plot or no land at all, people who live in critical areas, those leading a nomadic life. The implementation of such undertaking is estimated to be carried out by opening and developing 355,000 hectares of new agricultural production areas and the opening of 375 Resettlement Units. Transmigration policy in the recipient areas are designed to establish and prepare the means, infrastructure and facilities needed within the framework of boosting production, such as roads and arable land, as well as infrastructure for resettlement as housing, schools, public health centres, offices, houses of worship etc. Besides, each transmigrant is supplied with household equipment, agricultural and product processing implements. The said implements and supplies provided are destined not only for the transmigrants, but also for the local community in the new transmigration resettlement area. RIGHTS OF TRANSMIGRANTS The arrangement and preparation of land for each farmer family are adjusted to the development patterns. For the food crops pattern, each transmigrant will be allocated a yard of 0.25 ha and 1.75 ha of arable land, 1.0 ha of which is cleared by the Government and the remaining 0.75 ha by the transmigrant himself, either through auto-activity or with a bank credit. For the cultivation pattern, each will gain the allocation of 0.5 ha of land for a yard and for growing food crops, and 2.0 ha of land for growing estate crops plantation. The opening of 0.5 ha of land for a yard and for growing food crops will be funded with government subsidy, while the remaining of 2.0 ha is to become a nucleus estate financed with credit and managed in cooperation with the private sector or state-owned company. It is hoped that with the opening of these lands the transmigrants can soon start farming. MANAGEMENT OF TRANSMIGRATION Beginning fiscal year 1983/84, transmigration matters have been managed and administered by one department only i.e. the Department of Transmigration. As transmigration involves various sectors and fields, a coordination of all aspects of transmigration practises is therefore imperative. The implementation of coordination, has been directly or indirectly involving such agencies as the National Coordination Board for Resource Survey and Mapping, the National Defense Institute, and the Departments of Agriculture and Public Works. Involvement and coordination of the activities of the technical agencies in the implementation of transmigration are managed through a coordinating forum already existing i.e. the Coordinating Body for the Implementation of Transmigration (BAKOPTRANS) established on the basis of Presidential Decree No. 59 of 1984, in which everything is arranged related to the task and responsibility of the said agencies in the implementation of transmigration from the central down to the regional level. Membership of Bakoptrans at central level includes all the ministers involved in the implementation of transmigration with the Minister of Transmigration as the chairman. At the provincial level the function of coordinating is headed by the governor assisted by the Head of the Department Bureau involved in implementing transmigration while at the district level coordination is handled by the bupati/walikotamadya or head of district with the assistance of the Head of Bureau in charge with the implementation of transmigration. TARGET OF TRANSMIGRATION PERFORMANCE In the last year of the Fourth Five-Year Development Plan, 145,109 heads of family have been removed, made up of 27,697 heads of family through general transmigration and 117,412 heads of family by way of spontaneous transmigration. If compared with the target of the fifth year of REPELITA IV which was about 175,000 heads of family, the result achieved during the said period was only 83%, the failure of which was caused by giving priority to improvement of transmigration implementation. In the last year of the REPELITA IV, the total of land opened in the transmigration areas including land for a home and yard was 2,444 ha, which could accommodate 19,548 transmigrant heads of family, while the opening of productive land was 9,774 ha, enabling the accommodation of 19,548 heads of family. In terms of infrastructure development, the length of roads and bridges built was 440 km and 3,870 m respectively. In addition, 2,367 km of roads and 6,944 m of bridges have also been upgraded. HOUSING AND HUMAN SETTLEMENTS The development of housing and settlements aims at improving the people's welfare through the provision of housing, rehabilitation or restoration of rural housing, provision of basic environmental infrastructure, such as clean water supply, sewer system, and garbage disposal management. In general, the development in the housing and settlements sector had brought about considerable benefit to the people. A substantial amount of houses as well as housing compounds in urban areas had been constructed and rehabilitated, while in rural areas the number of houses and the surroundings that had undergone renovation had increased. This makes more people to live in decent houses and healthy environments. The policy of the development of housing and settlements is integratedly carried out, both in planning as well as implementation. Therefore, one activity is inter-related with the other, and one activity is supporting or completing the other. The Board for National Housing Policy (Badan Kebijaksanaan Perumahan Nasional) has been appointed to carry out this integrated policy. To allow the low-income bracket to have houses of their own, since 1986/87 the ratio of the construction of the small-type houses (36 m2 below) against the bigger ones (above 36 m2 to 70 m2) had been increased to 70:30, meaning that more small-type houses than the bigger ones were built. Development in the housing and settlement sector is carried out through three main programs. LOW-COST HOUSING PROGRAM This program covers the provision of low cost housing, rehabilitation of kampongs and rehabilitation of the environment of urban housing as well as renovation of rural housing. Perum Perumnas (the National Urban Housing Development Corporation) and Bank Tabungan Negara (the State Savings Bank) make it possible for the provision for a low cost housing estate. Perum Perumnas, together with private developers, is responsible of the construction of houses while Bank Tabungan Negara provides loans under the "Home Ownership Mortgage Loan" (KPR). In 1988/89 Perum Perumnas managed to build 9,914 units of houses and in the course of Fourth REPELITA 70,253 housing units were made available consisting of low cost houses, core houses and flats spread over 24 provinces. Meanwhile, the "Home Ownership Mortgage Loan" (KPR) from the State Savings Bank (BTN) was extended to 343,425 people of whom 255,014 had their houses developed by private developers and 88,411 by Perum Perumnas during the REPELITA IV period. PT Papan Sejahtera as one of the state-owned financial institutions also provides "Home Ownership Mortgage Loan" (KPR) to the middle income group, eventhough the sum of loans paid out to the consumers are still small. The number of clients who have made profit of this loan numbered only 14,299 with a sum of Rp 218,193 million. Rehabilitation of rural and urban housing compounds is done through improvements of the quality of roads, handling of garbage collecting and disposal, the sewer system, the provision of public bath, wash and lavatory facilities (MCK) and clean water supply. Efforts to improve various infrastructure, namely, the construction of elementary schools, Public Health Centers (PUSKESMAS), electricity supply, activities of the Family Welfare Movement (PKK) and home industry had been carried out. In the fifth year of the Fourth REPELITA rehabilitations had been made in 5,433 hectares of urban housing compounds reaching 1,373,000 people in 281 cities. Efforts to improve the rural housing is carried out through information activities, the construction of sample houses, rehabilitation of village houses and village roads through mutual assistance, provision of MCK (public bath, wash and lavatory facilities) and clean water supply. Thus, in the Fourth REPELITA 108,000 units of houses spread in 7,243 villages have undergone renovation, including those carried out self supportingly using building materials provided by the government. To accelerate and help the achievement of the whole objectives of the construction of low cost housing, supporting activities have been launched in 26 provinces. These include general guidance on the construction of low cost housing, improvement of skills, research on low cost housing and building materials and guidance on living environment. In the Fourth REPELITA 3,788 persons had undergone training on house construction techniques, while in 1988/89 alone, 1,188 persons had taken part in the training. In addition, various regulations, standard and guide book on the housing and settlements construction had been made. For the rural areas guidance on housing were conducted especially in the fishermen villages, transmigration locations, resettlement areas and critical villages. CLEAN WATER SUPPLY PROGRAM Efforts to improve clean water supply in big, medium and small cities as well as in rural areas are conducted by increasing production capacity, expanding and improving services and improving the quality of water supply administration boards. In 1988/89 the production capacity in urban areas increased to 4,447.5 liters per second. The number of houses that were supplied with clean water also increased to 288,822 and an addition of 4,829 sheltered springs had been installed, providing clean water to 3,353,931 people. Aid for the rural areas had been given in the form of hand pumps, artesian wells, rainwater reservoirs and the construction of a low-cost clean water distribution network. Efforts to increase capacity and to expand clean water supply distribution were carried out through the enhancement of efficiency of drinking water distribution by the regional water supply company (PDAM) and water supply administration board (BPAM). Until the fifth year of the Fourth REPELITA 137 PDAMs and 148 BPAMs had been established. Training courses, particularly in technical, managerial as well as financial fields had been given to 543 persons. IMPROVEMENT OF LIVING ENVIRONMENT IN RESIDENTIAL AREAS The improvement of the living environment in residential areas are conducted through the construction and rehabilitation of rainwater drainage, garbage handling and sewer system as well as the improvement of public building safety. Rehabilitation of the rainwater drainage is meant to prevent local floods and damage of the streets and other infrastructure. In 1988/89 drainpipes in 90 cities were rehabilitated, drainage technical planning for 100 cities made and 56 people trained and educated on drainage. The sewer system had been constructed in 19 cities and 47 people have followed trainings on the management of sewage. The problem concerning garbage in urban areas is handled by the local authorities in close cooperation with the central government and the community. A so called module system on garbage handling had been introduced in order to solve the problem in a more efficient way. Garbage is collected and brought to the dumping area by the local authority while the management is done by the neighborhood organization (RT/RW or LKMD). This module system is carried out by the local community. In the fifth year of the Fourth REPELITA the garbage disposal system had been introduced in 137 cities, the technical planning on garbage were made for 58 cities, 54 persons followed training courses on garbage disposal. In order to maintain discipline in construction activities and safety on public buildings as well as prevention from damage or fire hazard, various softwares, guidance and standardization on construction activities had been introduced. In line with this policy in 1988/89 evaluation had been made on technical standard and standard price of government buildings, and service houses while preparation for planning and zoning of Bogor, Puncak and Cianjur areas had been conducted. Assessment of existing government buildings in all second level regions, and control on the construction of hospitals, secondary and high school buildings in all provinces have been made while a Bill on Building Construction is being prepared.