Jakarta, Dec 30 (Antara) - Rumors about the influx of Chinese workers in Indonesia proved untrue, as the Capital Investment Coordinating Board (BKPM) data shows only 3,718 Chinese expatriates were employed in the January - September 2016 period.
Moreover, in 2016, the total number of expatriates in Indonesia is recorded at only 74,000 people, or about 0.062 percent of the total workforce of 120 million workers.
Rumors circulating that there are 10 million to 20 million Chinese workers that sideline local workers in Indonesia are untrue.
According to Law and Human Right Minister Yasonna Laoly, the reports that 10 million Chinese workers have taken jobs away from Indonesians is a hoax.
Even with a ratio of 0.062 percent expatriates, Indonesia still needs foreign workers who can help in offering their knowledge, skills and technology.
"The point is, that with a ratio below 0.1 percent Indonesia actually needs more foreign workers, in order to spread the transfer of skills and knowledge," BKPM Head Thomas Lembong (Tom) said, in a press statement in Jakarta on Thursday (Dec 29).
The percentage of Chinese workers in Indonesia is small, as reflected in China's investment in the country during the period of January - September 2016.
The number of Chinese workers absorbed in Chinese projects in the January - September 2016 period was 3,718, or only about 0.3 percent of the total 975,989 workers employed in the same period in Chinese projects.
"This (the rumors that Indonesia is flooded by some 10 to 20 million Chinese workers) is deplorable," Tom said.
President Joko Widodo (Jokowi), during the national Christmas celebration ceremony, asked all sides to cease spreading rumors regarding an alleged influx of foreign workers.
"The information that I received is that there are, indeed, Chinese workers, but their number is only 21,000. They come in and go back, because there are a lot of things that we are not yet ready to do. When we are ready, we will use our own labor force," he said.
Based on the BKPM data, Chinese investment in Indonesia surged in 2014 and was ranked eighth among foreign nations. In the January ¿ September period, Chinese investment reached US$1.6 billion and has risen to third.
The significant increase in investment has fueled a rise in the use of foreign workers by Chinese investors in Indonesia.
Data on expatriates' permits issued by the Ministry of Manpower revealed that in 2011 there were 77,307 foreign workers, and only 72,427 in 2012.
Then in 2013, it further dropped to 68,957 workers, and went down to 68,762 in 2014.
In 2015, the number of expatriates increased slightly to 69,025, and in 2016 it again increased to 74,183 people. According to Tom, the increasing trend in the number of foreign workers was due to the increase in foreign investment.
The reason for this increase is that foreign workers are usually recruited by the investors at the beginning of a project. They are expected to install new equipment and machinery which are not available within Indonesia.
The instruction manual for the installation of machinery and tools is often in foreign languages, such as Mandarin, German and Japanese.
"So, in order to accomplish the installation of the imported tools speedily and efficiently, investors recruit foreign workers from countries of the origin of the machinery and tools," Tom said.
However, after the first and the second year, the installation of equipment and machinery has usually been completed, and foreign workers are then returned home by investors as soon as possible.
As explained by President Jokowi, the use of foreign workers is quite expensive for investors, so they try to quickly transfer expatriates' function to local workers.
"Most foreign workers are also usually eager to return home, after finishing their task in a project in Indonesia," Tom said.
Furthermore, the ratio of foreign workers in Indonesia against the total workers remains very low.
The total number of foreign workers accounts for 74,000 people, or 0.062 percent of the total labor force of 120 million.
The ratio is still far lower, compared to the ratio of expatriates in other countries, such as Singapore, which has 36 percent expatriates, the United States at 16.7 percent, Malaysia 15.3 percent and Thailand 4.5 percent.
Even in Qatar, the number of expatriates reaches 94 percent, and in the United Arab Emirates it reaches up to 96 percent, according to Tom.
If, for example, the number of expatriates in Indonesia increased by 10 times the official data, then it would still only account for 0.62 percent. This percentage is far from the ratio of expatriates in other countries.
Of note, a modern country will use a far higher number of foreign workers.
Tom points out that with the ratio below 0.1 percent, Indonesia actually needs more foreign workers in order to assure the transfer of skills and knowledge.
For Indonesian companies can also take advantage of foreign workers by adopting the production and management systems of already advanced nations.
"We can take advantage of them as maximally as possible," he said.
Furthermore, all developing countries that were transformed into developed nations began with importing foreign investment and foreign workers.
Foreign investment brought in technology and marketing networks to boost exports, while foreign workers were instrumental to the transfer of knowledge and technology.
Indonesia, therefore, still needs foreign workers to support foreign invested construction projects.(A014/INE/o001)(T.A014/A/BESSR/O. Tamindael) 30-12-2016 12:55: |
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