Rabu, 03 September 2014

RI MUST BE PREPARED TO COMPETE IN BORDERLESS LABOR MARKET

 By Andi Abdussalam
          Jakarta, Sept 3 (Antara) - As a populous nation of about 240 million, Indonesia has to prepare its human resources to face stiff competition in a borderless labor market, particularly in the era of the ASEAN Economic Community (AEC).
         Although it is rich in human resources, Indonesia has yet to improve their quality and equip them with competence-based certifications or else, as a large county with rich natural resources, it will only become a manpower market for other nations.
         Even educated workers will face tough competition, let alone if the education system fails to be at par with the skills required in the job market. Indonesia continues to churn out new workforce, including those with adequately high education degrees.
         Yet, the question arises whether the country's human resources are now able to face competition in the global market, or at least in the AEC, which will come into effect at the end of 2015.
         Economic analyst Aviliani of the Institute for Development of Economics and Finance (Indef) expressed concern whether Indonesian workers will now be able to face the borderless manpower market in the era of global competition.

 
        She pointed out that Indonesia can encounter a problem when it produces large numbers of educated workforce, but their skills fail to match the market requirements. This can lead to foreign expatriates grabbing work opportunities in the country.
         Aviliani, therefore, feared that by the year 2020, highly educated Indonesian workers might remain unemployed.
         "If the government fails to anticipate this, Indonesia will be flooded by its own educated unemployed workforce in 2020," Aviliani noted in Jakarta on Monday.
         According to her, the current and next governments must immediately tackle the problem of increasing unemployment among the educated people. Indonesia can no longer afford to remain cut off from the globalized world, especially when the AEC is implemented next year.
         After all, new workforce continues to emerge. Aviliani has forecast that Indonesia's workforce in 2014 will increase to 119.91 million people from 118.19 million in 2013.
         According to the Central Bureau of Statistics (BPS), as of August 2013, the workforce in Indonesia was 118.19 million people, out of which 7.39 million were unemployed.
         The skillset of workers is also low. Data released by the BPS showed that the composition of Indonesian workers, 52 million of them or 46.95 percent, only had elementary school education.
         The BPS data also revealed that Indonesia's unemployment rate was still high, with the rate rising to 6.25 percent in August 2013, from 5.92 percent in February 2013 and 6.14 percent in August 2012.
         In this regard, the International Labor Organization (ILO) noted that Indonesia needs to optimize the benefits it reaps from the labor market in AEC, such as increase employment, wages, and productivity.
         According to a new study launched by the ILO and the Asian Development Bank (ADB), the introduction of AEC in 2015 can generate 14 million additional jobs and improve the livelihood of 600 million people living in the region.
         Antara quoted the ILO Assistant Director General and Regional Director for Asia and the Pacific Yoshiteru Uramoto as saying that the member states will be able to garner the benefits only if decisive action is taken to manage it effectively, such as developing policies and institutions that will support inclusive and fair development.
         The ILO and ADB also reported that under the AEC, the demand for highly skilled workers will also increase, and by 2015, high-skill jobs are projected to grow 41 percent or 14 million jobs will be available for the people in member states.
         However, the report predicts that skill shortages and mismatches are likely to worsen due to inadequate availability and quality of education and training.
         According to ADB Director of Regional Economic Integration Arjun Goswami, the ASEAN member states should consider developing closer links between education and the labor market in order to improve the number of skilled workers.
         "Investment in labor productivity is critically important for the sustained development of ASEAN," Goswami stated.
         Therefore, Aviliani has proposed that the Indonesian government should improve the quality of graduates passing out from institutions offering higher education. Graduates need to be equipped with appropriate certifications, so that they will be able to compete in various places, including abroad.
         "Indonesian workers should have the required certifications, so that they will be able to work in various places, including overseas," noted the Indef economic analyst.
         He affirmed that currently, about 95 percent of Indonesian workers have not yet been certified, which has narrowed down their employment opportunities, and they are only able to get work in the local or domestic labor market. In less than a decade, Indonesia will be flooded with its own new workforce passing out of its institutions having varied levels of education.
         Last May, the National Profession Certification Agency (BNSP) also expressed the need for Indonesia to increase the competence of its manpower in the face of the AEC, which will come into effect from 2015.
         "It should be done now. The new government must include it in the first 100 days of its working program," Sumarna F. Abdurahman, the BNSP deputy chairman, stated while referring to the government that will change in October after this year's legislative and presidential elections.
         He pointed out that Indonesia's education system, which was not yet competence-based, posed a problem in the employment sector. Meanwhile, each industrial sector does not as yet have a manpower competence certification agency.
         "In the ASEAN, school certificates are not used as a consideration for employment, but competence certificates are," he emphasized.
         Indonesia has, in fact, implemented several professional certification programs. In its middle-term development plan (2009-2014), a total of 2.5 million people were certified but 80 percent of them were Indonesian migrant workers.
         Aviliani stressed that if Indonesian workers had no competence-based certifications then Indonesia will only serve as the main market for foreign expatriates. Our workers will only be able to seek jobs at home and have to compete with their fellow countrymen and with those coming from other countries.
        She, therefore, highlighted the need for the Education Ministry to provide workers with training and competence-based certifications. So far, certification trainings have been provided by the Ministry of Manpower and Transmigration, not the Ministry of Education.
        "The Directorate General of Manpower should be under the Ministry of Education, so that it will be in line with the national education system. Competence-based certifications should be awarded to the workforce when they graduate from schools. In the absence of ongoing appropriate education, the unemployment issue will continue to pose a problem both for middle- and long-term development," Aviliani remarked. ***3***
(T.A014/INE/B003)
EDITED BY INE


(T.A014/A/BESSR/Bustanuddin) 03-09-2014 19:3

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