Master plan to create 9.6 million new jobs by 2014

The ambitious Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI) will create 9.6 million new jobs from 2012 to 2014, says an official from the National Development Planning Board (Bappenas).

Bappenas director for manpower and employment development Rahma Iryanti said that along with job creation, there would be an Rp 3,775.9 trillion (US$427 trillion) investment.“These jobs may help to reduce the unemployment rate to five percent by 2014,” Rahma said during a meeting on Wednesday.

Under the new master plan, the government expects to generate billions of dollars in investment to boost Indonesia’s gross domestic product (GDP) to about $4.5 trillion by 2025, which would make the country among the world’s 10 largest economies.

Data from the Indonesian Chamber of Commerce and Industry (Kadin) showed that the number of unemployed people had reached 8.1 million in February. That figure could decrease by at least 405,000 should the plan work well.

Further, Rahma said that the 9.6 million jobs designed for the six economic corridors of Sumatra, Java, Kalimantan, Sulawesi, Nusa Tenggara–Bali and Maluku–Papua, would be split into 4.7 million and 4.9 million jobs.

She said that the 4.7 million jobs were meant to support a Rp 2,225 trillion investment in 22 major projects, while the other 4.9 million jobs were to support an Rp 1,550.9 trillion investment in at least five minor projects.

Some of these major projects include steel, oil palm, rubber, coal, food and beverages, textile, nickel and copper facilities, while the minor projects focus on roads, seaports, hydropower and solar power plants, airports and railways.

For the major projects, 579,973 jobs will be created in Sumatra, 340,938 in Java, 1.7 million in Kalimantan, 460,940 in Sulawesi, 144,851 in Nusa Tenggara–Bali and 1.46 million in Maluku–Papua.

The minor projects will create 942,300 jobs in Sumatra, 2.5 million in Java, 450,800 in Kalimantan, 220,000 in Sulawesi, 155,600 in Nusa Tenggara–Bali and 654,500 in Maluku–Papua.

However, Rahma said that Bappenas required further research to analyze job categories, especially in terms of links to educational backgrounds.

Sumarna F. Abdurrahman, the head of Kadin’s standing committee for workforce competency certification, said during the meeting that although the plan might reduce unemployment figures, under performing workers would still represent a problem.

He said that at present, the competencies of new graduates did not yet match the competencies required in industrial sectors.

“At this moment, from 100 fresh graduates, 30 of them cannot cope and are not suited to industry
requirements,” Sumarna said.

He said that an academic-oriented educational system, as opposed to profession-oriented system, had caused workers to not perform well at work.

“A link and match system to connect formal education with competency-based training (CBT) companies is required, but it has not yet been established,” he said.

Besides creating such a system, the government should also change its policy from one that is supply driven to one that is demand driven, meaning that quality should be placed above quantity.

He also said that CBT should be integrated with certification and worker placement, under a program called “3 in 1”. (fem)

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