Indonesia Turns to Industrial Development to Tackle Unemployment Woes

JAKARTA, KOMPAS.com – Indonesia's labor market is not immune to the effects of the Covid-19 crisis, which has fueled unemployment numbers currently estimated at five in every 10 Indonesians.

The Ministry of Industry has encouraged young Indonesians to actively participate in national industrial development in order to enhance the country's global competitiveness level.

The Indonesian population is projected to serve as a demographic bonus in which it will reach its peak between 2020-2024 when the number of citizens in their productive years make up the majority of other age groups.

Secretary-General of the Indonesian Ministry of Industry Achmad Sigit Dwiwahjono said that the government must optimize the execution of its ‘Making Indonesia 4.0’ plans which include improving the competency of its human capital.

Read also: Industry 4.0 Answer to Indonesia’s Economic Ambitions in 2030

“The Youth Pledge can be harnessed as an inspiration for today’s youths to drive this country into the direction of improved change. By doing so, we will be able to face the phenomenon of global changes head on as an opportunity while offering solutions to unanswered challenges, particularly those involving the industrial sector,” said Achmad.

The impact of the Covid-19 crisis on the labor market in Indonesia has been heavy with approximately 6.9 million people out of work.

An additional 3.5 million workers placed on unpaid leave and another 3 million new job seekers joining the workforce.

Read also: Ranks of Jobless Expected to Swell to 11 Million in Indonesia

“It is a huge number because that is nearly 5 percent of the Indonesian population that needs a job to make use of the productivity level,” said Achmad.

To keep the Indonesian population employed and productive, the government has prioritized the conduct of sustainable activities in the industrial sector under tight Covid-19 health protocols.

Achmad highlighted the example of the Ministry of Industry's issuance of 18,183 Operational and Mobility License for Industrial Activities that will absorb around 5.15 million workers.

“We have been pushing ahead in driving investment into the manufacturing sector because there is a massive multiplier effect on the economy especially the labor market in Indonesia. The ministry has also been working on developing new entrepreneurs for new industries.”

Read also: No Increase in Minimum Wage for 2021: Indonesian Minister

Achmad Sigit further explained that the priority on industrial development is linked to Law Number 3 Year 2014 about Industries which stipulates that Indonesia’s industries must become a green industry, and is independent, competitive, and forward-moving.

“When interpreted, it means that in the effort to push for Indonesia’s industrial development, we must consider the environment and the principles of sustainable development with future generations in mind.”

(Writer: Ade Miranti Karunia | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/10/27/192900826/kemenperin--5-persen-dari-populasi-indonesia-saat-ini-perlu-disiapkan