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    The Government is Committed to Improve Labor Welfare


    JAKARTA - During the celebration of International Labor Day in 2016, the government reaffirmed their commitment to continue to improve the welfare of workers in Indonesia. The commitment is actually Joko Widodo - Jusuf Kalla’s governance program as mandated in Article 100-101 of Law No.13 of 2003 on Manpower.

    In order to execute the mandate of the law, the Ministry of Labour along with other contributing Ministries / Agencies has made several breakthroughs related to policies and programs. The policy, among others, the Government Regulation No.78 of 2015 concerning the remuneration, the Minister of Employment Regulation No. 6 of 2016 regarding religious holiday allowances, Regulation of the Minister of Labour No.7 of 2016 concerning money services in hotels and restaurants in the hotel, as well as the Law No. 4 of 2016 on Savings for Housing.

    "Waging policy serves as an evidence of the presence of the state in ensuring the Labor / Workers do not fall in the pit of low wages, because surely wages will rise each year. This regulation also provides certainty for the business world because, the amount of the wage increase is being measured, so that employers will be able to expand its business. So, job opportunities are also expected to rise," said the Minister of Labour of the Republic of Indonesia, Hanif Dhakiri in a written press release, Sunday, May 1, 2016.

    Hanif explains that the policy does not eliminate the need for decent living in determining wages. Because, in the formulation of minimum wage, the type of needs that are existing in the need for decent living are also a kind of necessity that determines inflation. In addition, the calculation formula still including the role of workers in the process. It is stated in Article 42 paragraph (2), namely: The wage of employees / workers with years of service of more than one year or more will be negotiated bipartitely between workers and employers. As a derivative of wage policy, workers with a minimum of one-month year of service has the right to receive a Religious holiday incentive in the amount of one-month wage. The amount is calculated proportionally according to the years of service. Meanwhile, the policy also regulates the hotel and restaurant businesses to provide 95% of the money collected in the month for distribution to their employees. The distribution took into account the principle of equitable and excellent service, which is 50% divided equally and the rest are divided based on seniority and performance.

    Other government programs to sustain the welfare of workers and in terms of social policy is the policy of Indonesia Smart Card, Healthy Indonesia Card and policies regarding housing and transportation cost for workers. The government seeks to meet the needs of the Labor / Workers through Sejuta Rumah programme, the construction of 10,000 subsidized apartments for Labour / and Tapera program. Sejuta Rumah Programme will build 603 516 housing units for groups of Low-Income Communities (MBR) including workers / laborers, fishermen, military / police and civil servants. In addition, the government also seeks to realize the cheap transportation from and to the workplace for Labour / Workers.

    As for Labor / Workers who are interested in running a productive business, the government will provide Kredit Usaha Rakyat (KUR). Some of the recipients are prospective Indonesian Workers working abroad, migrant workers, the family members of workers with fixed income and layoffs who follow entrepreneurial training. The interest of KUR continues to decline each year. In 2014 the interest of KUR is 22%; 2015, 12%; 2016, 9%; and in 2017 it is expected to drop 7%.
    Acceleration Competence Enhancement of Labor.

    In addition to the welfare of workers / laborers, the government also focused on the acceleration of labor competencies. This is crucial, especially in the era of the ASEAN Economic Community (AEC). Based on the National Labour Force Survey (Sakernas) per August 2015, the Indonesian labor force amounted to 122.38 million by the number of 114.82 million people were working. From these data, approximately 50.83 million of elementary graduates and below has worked. For junior high education level, 20.7 million have been working. Upper secondary education (High school / equivalent) as much as 30.65 million have been working. While the level of Diploma / Bachelor education level upward just as much as 12.64 million that have been working. The work force will be difficult to be absorbed without considerable qualifications, skills and expertise. To overcome this The Ministry of Labour continues to perform various actions on the acceleration of worker’s competence. One of them is the Training Center revitalization, reorientation and rebranding. Currently the total number of Training Centre is 279. A total of 17 is the belonging of the central BLK and 262clocal government-owned training in provincial, district / city level.
    "Now BLK is not limited to a certain range of ages and education levels. Anyone can get access. This needs to be encouraged so that the unemployed can enter the job market after increasing their skills and increase while for those who are already working, their competence, competitiveness and wages could be increased." Said Hanif.
    Other efforts that is taken to improve the competence, is the cooperation with the Chamber of Commerce and Industry (Kadin) of Indonesia for an integrated training program. The program includes training, apprenticeship and certification and are conducted jointly between training institutions, certification agencies and industry. It is hoped that this cooperation could produce competent and competitive human resources. This cooperation is targeting 200,000 apprenticeships each year. 2,000 companies under the Chamber of Commerce will participate by receiving 100 interns per company annually.

    "To paraphrase the president, the state and the nation that won the competition is the one that is superior in skill and competence. Therefore, training and vocational education becoming important in order to increase the competence of workers," said Hanif.

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