44,000 layoffs since November: Minister

The Jakarta Post ,  Jakarta   |  Thu, 04/23/2009

As the global financial crisis continues to hit domestic and international industries, the number of layoffs across the country hit a new level, with the manpower ministry announcing Wednesday that some 44,000 people lost their jobs between November and March.

Myra Maria Hanartani, the ministry's director general for industrial relations and social security, said that as of April there was no sign the country's employment situation would improve this year.

A key labor union warned that unemployment could worsen, with at least 300,000 Indonesian migrant workers returning home from overseas due to the crisis in the host countries.

"Our latest data shows that since last November, around 44,000 workers have been laid off," Myra said.

The ministry said more than 24,000 workers had permanently lost their jobs in January alone, while as many as 11,703 were temporarily laid off by the end of the month.

Workers in the garment, plantations and forestry industries were the hardest hit, Myra said on the sidelines of celebrations to mark the 90th anniversary of the International Labor Organization (ILO).

Thamrin Mosii, president of the Indonesian Labor Union Confederation, said 300,000 migrant workers would return to Indonesia after their contracts ran out this year.

"We estimate around 300,000 workers will return from Malaysia this year, with companies there experiencing slowing demand," he said.

He added the number of returning workers could be much higher, as other host countries were also feeling the impact of the crisis.

On the domestic front, he said, outsourced and contract employees in the textile industries were the most severely affected by the crisis.

"I don't know the exact figure, but it could be in the hundreds of thousands. It's hard to pinpoint the figure because most outsourced employees are not registered with *state pension and worker insurance firm* PT Jamsostek," he said.

However, Thamrin was confident the government's fiscal stimulus would help cushion the impact of the financial crisis if applied in rural areas.

"The stimulus should be aimed at creating infrastructure in rural areas," he said.

"This will boost rural economies and create employment, particularly in the construction sector."

Given the growing wave of layoffs expected to hit Indonesia this year, the extent of the ILO's role in helping workers has come into question.

Manpower and Transmigration Minister Erman Soeparno said the ILO's role in Indonesia could be improved.

"For instance, they should help us promote the welfare of migrant workers," he said.

"In reality, many host countries fail to acknowledge migrant workers' rights, such as protection rights, human rights and normative rights.

"The ILO cannot turn its back on that reality. It is the ILO's role to help us promote worker's rights."

Alan Boulton, the ILO country representative in Indonesia, played down the criticism, saying the organization had taken steps to help with various labor issues.

"The ILO has been assisting the Indonesian government in terms of understanding the employment impacts of the financial crisis," he said.

"We're working globally with employers, unions and governments in identifying different impacts of the crisis."

Boulton added Indonesia needed to improve its social security system to protect workers from layoffs, adding that companies needed to find alternative ways to reduce labor costs without losing their skilled workforce.

"This can be done through shorter working hours, giving more training to workers and instituting a coordinated disbursement of the government's fiscal stimulus," he said.

The government has set aside a Rp 73.3 trillion stimulus package to support industries hit by the economic slowdown so they can avoid dismissals. (fmb)