Sunday 16 October 2016

ASEAN ECONOMIC COMMUNITY CHALLENGE IN EMPLOYMENT IN INDONESIA

PART I
PRELIMINARY

1.1 Background
Indonesia is one country with a capacity of Human Resources that many. But in the management of its human resources, Indonesia is still very far behind neighboring countries such as Malaysia, Thailand, Philippines, and other countries. It is caused by the level of education in Indonesia is still low and inadequate facilities, resulting in lower quality of labor, increasing unemployment, declining productivity, and low competitiveness to be able to face the competition between labor from the country and abroad.
Indonesia with nine other ASEAN member countries have signed a declaration blueprint Asian Economic Community (AEC) to initiate an integration step in economic terms. This makes Indonesia should strive to improve the quality of human resources and to improve the competitiveness of Indonesian manpower soul to survive amid the era of free trade to come. The Indonesian government must be focused and concerned with labor issues and immediately clean to create a climate that is conducive to speed up the movement of economic growth through Human Resources. The improvement can be done by improving education, educational equity, improving health, conduct training for the workforce, provide adequate facilities, revamping the structure of employment in Indonesia, and others - others will push the quality of labor. When a country has a highly competitive and able to compete in regional and global arena it is certain labor-owned has been able to achieve standardization and have a good reputation which would lucrative state.
Human resources (HR) is one of the key factors in economic reform, namely how to create quality human resources and skills as well as highly competitive in a global competition which we abaikan.Globalisasi which certainly faced by the Indonesian people demanding their efficiency and competitiveness; in the business world. In a globalization which involves intraregional and international relations will be competition between countries. Indonesia in the global competition according to the World Competitiveness Report ranks 45th, the lowest of all countries surveyed, below Singapore (8), Malaysia (34th), China (35th), Philippines (38), and Thailand (40). In this case we can see that Indonesia is still very far behind in global competition.
Indonesian nation-building in the future is highly dependent on the quality of Human Resources and Indonesian workers physically and mentally healthy and have the skills and expertise, so as to build from the families concerned to have a job and a steady income and decent enough to meet the needs of life, health and education of family members to be able to build Indonesia in global competition (MEA) in 2015.
Currently, Indonesia has been preparing to welcome the MEA on December 31, 2015 was launched. Delegates from each of the ASEAN countries, especially Indonesia hopes the MEA can make people in the more developed countries. Besides the social and economic aspects that reflects the implementation of the MEA population and trade, such thinking also guided by aspects of employment are no less important in the country itself.
1.2 Problem Formulation
1. What are the conditions of employment in Indonesia in the arena MEA?
2. What challenges and opportunities of employment in Indonesia against the MEA?
3. How does the employment readiness of Indonesia in the face of MEA?
4. How does the Indonesian Government policy on employment Indonesia in facing the MEA?
5. How Step Strategic Solutions Indonesia employment in the face of MEA?






CHAPTER II
DISCUSSION

1.1 Conditions of employment in Indonesia in the arena MEA
ASEAN Economic Community (AEC) or the ASEAN Economic Community will be implemented in 2016 still leaves a question mark. One of them is the issue of employment. Until now, regulation of labor flows freely enter Indonesia. Chamber of Commerce and Industry (Kadin) Indonesia assess manpower development in Indonesia is still very low.
Low Human Resource Indonesia led to labor conditions experienced various serious problem and requires an effective government role to overcome in order to achieve the Human Resources that have high competitiveness to face global competition first Asian Economic Community (AEC). The problem - a problem often faced by workers in Indonesia are:
A. The low quality of labor
The quality of the workforce in a country can be determined by looking at the level of the country's education. Most workers in Indonesia, the level of education is low. This led to the mastery of science and technology to be low. The lack of mastery of science and technology leads to low productivity of labor, so this will affect terhadaprendahnya the quality of production of goods and services.
B. Total labor force that is proportional to employment
The increasing number of labor force that is not offset by the expansion of employment will bring a burden for the economy. The labor force can not be accommodated in the labor market will cause unemployment. Though the government hopes, the increasing number of labor force could be a driver of economic development.
C. Distribution of labor uneven
Most workers in Indonesia are located in Java. While in other areas is still a shortage of labor, especially for agriculture, plantation and forestry. Thus in Java a lot going on unemployment, while in other areas there are many natural resources have not been managed optimally.
D. Unemployment
An economic crisis in Indonesia resulted in many industries in Indonesia have gone bankrupt. As a result, many workers who stop working, the narrowness of the existing employment but the total labor force continues to increase.
Based on the data released by the Central Statistics Agency (BPS) in the Official Bulletin of Statistics No. 38/05 / Th. XVII, May 5, 2014, the state Employment per month of February 2014 is as follows:
1) The labor force in Indonesia in February 2014 reached 125.3 million people; increased by 5.2 million people compared to the labor force in August 2013 as many as 120.2 million or an increase of about 1.7 million people compared with February 2013.
2) The number of people working in Indonesia in February 2014 reached 118.2 million people; increased by 5.4 million people compared to the state in August 2013 as many as 112.8 million or an increase of 1.7 million compared to the state in February 2013
3) Unemployment Rate (TPT) in Indonesia in February 2014 reached 5.70 percent; TP decreased compared to August 2013 amounted to 6.17 percent and TPT in February 2013 amounted to 5.82 percent.
4) During the last year (February 2013 - February 2014), the total working population has increased in almost all sectors, especially in the Social Services Sector as many as 640 thousand people (3.59 percent), the Trade Sector 450 thousand people (1.77 percent), and the Manufacturing Sector as many as 390 thousand people (2.60 percent). While the sector is declining agricultural sector which has decreased the number of people working at 0.68 percent.
5) Based on the number of hours worked in February 2014, as many as 81.2 million people (68.71 percent) work over 35 hours per week, while the working population with the number of hours worked less than 15 hours per week reached 7.3 million people ( 6.16 percent).
6) In February 2014, the population worked in elementary education levels down still dominate as many as 55.3 million people (46.80 percent), while the working population with education Diploma 3.1 million people (2.65 per cent) and population working with university education just as much as 8.8 million people (7.49 percent).
From the BPS can be concluded that the participation rate angkatanm increased employment and decreased unemployment. However, with declining unemployment rate does not mean that Indonesia has made progress and can be declared ready to fight in the free market MEA. This is because Indonesia still has a wide range of domestic problems that make the Indonesian government has not been so focused on the face of the MEA but rather occupy the things that will not even be endless, such as issues of politics and government is not concerned about job creation that have high quality to able to compete in global markets and prevent the influx of labor from other countries as well as discrimination against women workers, salaries / wages are inadequate, labor protection issues, and others - others. This will cause negative effects for Indonesia in terms of preparing for talent. Many of the workers who have not been so aware by going to the enactment of the MEA, so companies need was training again to prepare MEA.

2.2 Challenges and opportunities of employment in Indonesia to MEA
Employment is an important role in the development of social welfare in Indonesia. According to Law No. 13 2003 Chapter I Article 1 Paragraph 2 states that labor is any person who is able to work in order to produce goods or services either to meet their own needs as well as for society. Therefore, the government should empower the existing workforce in Indonesia.
MEA indirectly led to employment increases, but it does affect the employment opportunities of our workforce, especially in his own country. With the MEA labor ASEAN citizens can be spread in every ASEAN country, so that the chances of such Indonesian Workers (TKI), especially in the ASEAN region to be maintained existence. However it is not possible, workers in Indonesia alone could match in obtaining employment in their own country saw a free market economy, especially in Indonesia is very advantageous because the number of Indonesia's population of 249.9 million people. Therefore, the role of government is needed now is the government Joko Widodo to sustain employment given the MEA which is a sustainable economic development.
Potential generated when the government put forward the issue of labor in Indonesia should be able to generate a positive trend on the economic progress of the nation. Total labor force in August 2013 alone according to the Central Bureau of Statistics as many as 118 190 000 million compared with the total population of Indonesia at this time is almost halved. Thus, the need for a training program to support the competitiveness of the work force to improve the skills of our work by not waive the sovereignty of the workforce.

2.3 Readiness Indonesian labor in the face of MEA
In order to maintain political stability and regional security ASEAN, enhance the competitiveness of the region as a whole on the world market, and promote economic growth, reduce poverty and improve the living standard of the Member States, all Member States of ASEAN agreed to immediately realize the economic integration more tangible and meaningful namely ASEAN Economy Community (AEC) or the ASEAN Economic Community (AEC). The involvement of each country in cooperation, both multilateral and regional levels, has its own interests, as well as Indonesia has its own interests with ASEAN cooperation. The willingness of Indonesia together with nine other ASEAN countries to form the ASEAN Economic Community (AEC) in 2015 was based on a belief in the benefits that conceptually would boost economic growth in Indonesia and the ASEAN region.
Challenges faced by Indonesia enters ASEAN economic integration is not only that is internal in the country but even more competition with fellow ASEAN countries and other countries outside ASEAN. Another challenge is the Indonesian inflation rate is still relatively high compared with other countries in the ASEAN region. The competitive ability of Human Resources Indonesian workers must be improved, both formally and informally. For that, Indonesia should be able to improve the quality of its workforce so it can be used both in domestic and intra-ASEAN, to prevent the influx of skilled workers from outside. One of the great challenges of our national education is to instill a collective consciousness as a nation need to fight hard to achieve progress, catching up with other countries in many aspects.
For Indonesia, where MEA into the early rounds to develop a variety of quality economies in Southeast Asia in the development of a free market. MEA into two sides of a coin for Indonesia. On one side is a good opportunity to demonstrate the quality and quantity of products and Human Resources of Indonesia to the country - other countries with open, but on the other hand can be a turning point for Indonesia if Indonesia can not use it properly. In an era of global competition, Indonesia must pay attention to labor and production which is not a matter of a quantitative, but also qualitative side of her. The quality of low labor one of which resulted levels of education and skills are inadequate. As quoted from the ASEAN Community Bulletin March 2014, the opportunity for new workers in Indonesia 22% worse than the Philippines, Malaysia, and Vietnam. This resulted in the development of new research and innovation in enhancing the competitiveness of larger considering the competitiveness of Indonesia is still low among the other ASEAN countries may be a stumbling block in the MEA.
There are some fundamental problems facing Indonesia in order to face the MEA 2015, namely:
1. The high number of underemployment (disguised unemployment);
2. The low number of new entrepreneurs to accelerate the expansion of employment opportunities;
3. Workers Indonesia is dominated by uneducated workers so that labor productivity is low;
4. Increasing the number of unemployed educated labor force, due to a mismatch between college graduates with labor market needs;
5. Inequality in labor productivity between sectors of the economy;
6. The informal sector dominates employment, where the sector is not yet optimal attention from the government;
7. Unemployment in Indonesia is the highest unemployment of 10 ASEAN member countries; unpreparedness of skilled labor in the face of AEC 2015;
8. The demands of workers to the minimum wage, labor contracts, employment and social security; and
9. The problem of Indonesian Workers who are scattered abroad.

The quality of labor in Indonesia should be able to have certain performance standards to face the MEA. As labor certification for each of the workers who work in Indonesia thus increasing the competitiveness of our workforce in the world. More and more jobs in the area of ​​Indonesia is not menutut possibility of citizens outside Indonesia may be attracted to work in Indonesia. With the acquisition workforce so competition can also allow Indonesian workers to be benefited in this MEA, especially in our own country.

2.4 Employment Policies Government of Indonesia in Facing MEA

There are some things that need attention or record for the world of employment prior to the time of our country will actually enter the MEA.

a. Regulation Legislation Employment Field.
Legislation in the field of labor. Although the source of labor law in Indonesia there are legal provisions in the various legislation, Act No. 13 of 2003 on Manpower is the basic rule that contains the settings thoroughly and comprehensively in the field of employment. This is the handle as the rules of the game world of employment in Indonesia when entering the MEA. However, if the Act already protect workers especially when going into the MEA? With so many companies and foreign workers who will enter later, whether this Act will also protect Indonesian workers?
For example, in every speech or demonstration conducted by the workers, the implementation of contract system and outsourcing based on the Act is deemed to have weakened the position of the workers because there is no job security, the certainty of wages, even the certainty of welfare benefits more so that workers / laborers request it is to be removed. Even the government is often accused of having a lot delete or change any of the rules that is protective for the sake of investment in Indonesia.
Furthermore, with materilkannya has been tested several times this Act to the Constitutional Court have resulted in several articles that have been disconnected in the resulting judicial review should be followed up. With the cancellation of several Articles such as Article 120 paragraph (1) and (2), Article 155 paragraph (2), and Article 158, the existence of Law Number 13 Year 2003 on Manpower result of this Act is not intact anymore so Law is indeed feasible to immediately refined again. However, alteration or replacement of Manpower Act is not as easy as turning the palm of the hand. The planned revision of the Act in fact have occurred in 2006, and at that time the government withdrew the proposed revision as there are conflicts of interest that is strong enough between the interests of workers and employers. It's also the result in plan changes or replacement of the Act on Employment has become difficult because of interests between workers and employers is difficult to achieve an ideal starting point.
Based on the theory Radbruch, a rule or a new law can be said to be good if they meet three conditions, namely philosophically establish justice, sociologically helpful, and legally can create certainty (Satjipto Rahardjo, 1980). Made the regulations in the field of employment is aimed at achieving peace and fulfill the third requirement. The government should present to protect by giving special protection to workers
Indonesia and not be subject to the interests of the owners of capital. To deal with the MEA, the Law on Employment is expected to be enhanced to meet the three conditions for Indonesian workers is one of the components that affect the economic, political, and social in this country.
b. Law Enforcement labor inspectors
Labour inspection should be carried out in accordance with the provisions of Article 134 of Law Number 13 Year 2003 which states that "In order to realize the implementation of the rights and obligations of workers / laborers and employers, the government must carry out supervision and enforcement of labor legislation". In the face of the MEA, the position of inspectors becomes very important in order to be more conducive industrial relations and as protection for workers in the face of this global competition. Efforts preparations must be addressed is the quality and quantity of labor inspectors to supervise the implementation of Law No. 13 of 2003 on the Employment.
In terms of quality, with the change of government system which initially resulted sentaralistik to decentralized governance authorities are now much more rely on the county / city. However, Manpower (Manpower) which should be protective for workers could be said to be still unable to function properly and to know in-depth labor problems since often the educational background and work experience of labor inspectors do not support. This is due to the implementation of personnel transfers are often less attention to the educational background of a person when going to mutation.
In terms of quantity, based on the data obtained from the Ministry of Manpower (Manpower), the number of inspectors in 2013 recorded about approximately 2,400 people in Indonesia, and the supervisor must oversee about 216,000 companies in Indonesia. The distribution of labor inspectors and even then until now only reaching approximately 300 districts / cities from more than 500 the number of districts / cities. It is very less than ideal given the disparity is too far between the number of law enforcement by the number of companies that must be monitored.
With the number of unbalanced between labor inspectors and the number of enterprises, it clearly resulted in labor inspection to be ineffective because the quantity of human labor inspectors are not in accordance with the needs of the field. To overcome this problem has been the Government should immediately conduct education and training on an ongoing basis as well as an inventory of the needs of the number of labor inspectors, both at the provincial and district levels so that the city can anticipate the rush of investment into Indonesia the entry into force MEA later.


2.5 Steps and Strategic Employment Solutions jobs Indonesia in the face of MEA
Quality of Human Resources are low and readiness of Indonesian workers who are low in the face of this MEAsaat not mean that Indonesia had to withdraw from the competition of labor in the era of MEA. It is precisely the presence of MEA can be used as part of encouraging quality in terms of education and skills to Indonesian workers can compete in emmperebutkan jobs in their own countries and the ASEAN member countries.
Vice Chairman of Kadin Indonesia Labor, Benny Sutrisno states that Kadin has prepared three programs in order to face the MEA 2015 that also supports MP3EI:
1) Identification of the manpower needs of professional / skilled to support 22 economic activities in six economic corridors and increase the competitiveness of 12 priority sectors MEA 2015;
2) Facilitate the development of competency standards and the establishment of professional certification (LSP) by the relevant Industry Association 22 economic activities in the economic corridors and 12 priority sectors MEA 2015; and
3) Development of the Chamber of Commerce Training Center (KTC) to encourage the development of competency-based training program as required by the Provincial Kadin industry.
Benny Soetrisno also an inventory of 12 priority sectors MEA 2015 called free flow of skilled labor (the free flow of skilled labor), namely: health care (health care), tourism (tourism), logistics services (logistics services), e-ASEAN, transport services air (air travel transport), agro-based products (Agrobased products), electronic goods (electronics), fisheries (fisheries), rubber-based products (rubber based products), textiles and clothing (textiles and apparels), automotive (automotive) and wood-based products (wood based products).
Currently Indonesia tend to have increased education when seen by the rank of the AEC Scoredcard of phase I (2008-2009), Phase II (2010-2011), Phase III (2012-2013). In the phase III Indonesia ranks sixth out of ten ASEAN countries to another. Although it has progressed quite well, but Indonesia still needs to make improvements in various sides, especially in terms of policies on education that will support the Indonesian experts to be able to match future global competitiveness. When education is the basis for prospective experts are not able to support them in order to survive in the competition, then that is where Indonesia will be far behind. When compared with the number of Indonesian workforce with people who have worked, attainment of employment could be quite good that is equal to 94.08% of the total workforce. However, over 50% of workers absorbed graduated from elementary school. This is of special concern to the Indonesian government to immediately improve Indonesian education system and equalize the education itself. The curriculum is made by the government is expected to help prospective experts to be more competent and synchronized with international standards.
Other strategic steps to prepare skilled manpower and professional Indonesia in the face of MEA in December 2015 is Indonesia also have to standardize the professional quality of the workforce. This is due to the quality and quantity of labor in other countries are much better than Indonesia. Indonesia will be spectators in their own country if standardization is not done in view of the company - the company wants workers having excellent quality and expertise so that business activities can be long-lived. That is the basis why standardization is required when competition in the labor force will be more stringent AEC era.
Policy measures that can be taken and implemented through ketenagakerjaanyaitusebagai following program:
1. Expansion Program Development and Employment, is to:
a. enhance labor laws
b. consolidating employment creation program
d. improve service workers abroad with cheap, easy, and fast
e. cooperation development of integrated information system of foreign labor markets
2. Quality and Productivity Improvement Program of Labor, is the
a. increasing the competency-based training program
b.meningkatkan functions and revitalization Training Center (BLK) into a competency-based training institute
c. apprenticeship training programs in the country and abroad
d. facilitating educational institutions and vocational training
e. drafting and developing national competency standards work
3.Program Protection and Development of the Institute of Labor dilakukandengan:
a. Increasing the quantity and quality of labor inspectors of industrial relations;
b.Meningkatkan supervision, protection and law enforcement as well as occupational safety and health
c. Developing social security workers, and others - others.
Meanwhile, Indonesia's labor Widodountuk TugaspemerintahanJoko when MEA is, with foreign workers must have certain requirements in order to operate in Indonesia. This meant that workers in Indonesia are incontestably administrative work opportunities. Examples requirements of foreign workers to work in Indonesia, namely reactivate Indonesian language test which was held Hall Indonesian Indonesian test because it abolished its existence by President Joko Widodo on August 21, 2015. This policy is intended to protect workers in the country or the local workforce in Indonesia to face the MEA.
However, it is only addressed by workers for fear of foreign investors feel restricted movement to boost the economy in Indonesia led to its quasi movement of foreign investors so that many workers end up losing their livelihoods. Thus, it is good government as the executor of policies to strengthen the labor of aspects inside and outside so that the dignity of labor which is a reflection of the nation and this state is maintained.
As well as the Employment BPJS that have programs that cover the workforce in Indonesia, the government Joko Widodo is expected to form a solution also in problems facing the MEA that Indonesian workers have the skill or skills that qualified to be ready to compete with foreign workers both inside and outside Indonesia when the MEA begins. Government policies Joko Widodo would be nice also did not rule out labor lately have some demands but active role in resolving labor issues such as labor image is a depiction of the nation's welfare. Finally, the development of employment in Indonesia can go forward with time, especially at the national and international scope.



CHAPTER III
COVER

3.1 Conclusions

Human resources (HR) is one of the key factors in economic reform, namely how to create quality human resources and skills as well as highly competitive in a global competition which we abaikan.Saat this, Indonesia has been preparing to welcome the MEA on December 31, 2015 launched. Delegates from each of the ASEAN countries, especially Indonesia hopes the MEA can make people in the more developed countries. Besides the social and economic aspects that reflects the implementation of the MEA population and trade, such thinking also guided by aspects of employment are no less important in the country itself.

3.2 advice
Indonesia next challenge is to bring meaningful change to the lives of everyday people. Indonesia must improve in all respects both the regulatory side where the rule of law must be firm, government should be clean, economic justice must be created as well as equity, the need for political stability, security and social order, technological innovation, and the availability of adequate infrastructure. MEA should be able to be used as well - as good as the media to promote themselves in the regional arena and the training ground for Indonesian workers can compete in the International with more quality than the country - other countries. With the MEA Indonesia should be able to see a good opportunity to improve the quality of human resources that exist to improve competitiveness, provide adequate education and health, and provide education on the importance of the MEA itself.
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