Unemployment in 2009

250,000 Faces Possibility of Layoff in 2009

VIVAnews – The number of layoffs in 2009 is estimated to reach 250,000. The number consists of 100,000 workers in the country and 150,000 people working abroad

According to the Chairperson of the Confederation of Labor Unions in all of Indonesia (KSPSI), Sjukur Sarto, the layoffs occur in the garment, textiles, leather, electronics, agriculture, and carpentry sectors. "However, the figure is still an estimate," he said in Jakarta, Wednesday, Dec. 31.

He stressed the need to prepare for overseas workers who are returned to Indonesia. If that happens, it will worsen the increase in unemployment.

He stated that there are 300,000 layoffs in Malaysia and 100,000 of them are Indonesians. Taiwan has laid off 105,000 people, with 20,000 thousand of them from Indonesia. Meanwhile, the number of layoffs in South Korea is 850,000, and 15,000 are from Indonesia. “There is an additional increase in the number of people that returned to Indonesia of up to 145,000 to 150,000,” he said.

President of the Confederation of Indonesian Labor Unions, Thamrin Mosii explained that up to this point, there are as many as 35,000 workers who have been dismissed in the garment, textile and leather  industries in Depok, Tangerang and Bogor.

For example, he said, PT Raja Brana in Depok is one garment factory that has been closed down. It dismissed 4,000 employees. "The company’s assets were insufficient to cover debts owed to banks, let alone to pay for compensation," he said.

With the layoffs that are expected to occur in 2009, it is estimated that the number of unemployment will rise to 2.7 million, including those unemployed upon graduation from schools. For that reason, the government is absorbing workforce through infrastructure development because the sector could absorb 700,000 to 750,000 workers.

Meanwhile, property is another sector that can be expected to contribute to workforce absorption. According to State Minister for Public Housing, M Yusuf Asy’ari, the investment value in the housing sector of up to Rp 55.4 trillion (US$ 5.1 billion)has created jobs for 3.4 million people in 2008.

For example he said, housing project valuing Rp 7.5 million (US$ 688) will directly create jobs for 105 people. “Meanwhile, the creation of jobs indirectly would be Rp 3.5 billion (US$ 321,000) times 105 people,” he said.

For the year 2009, Asy’ari estimated that the value of housing investment would be around Rp 51.7 trillion (US$ 4.7 billion) with workforce absorption of up to 3.26 million people.

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VIVA.co.id
27 April 2024