Govt expects to create 2.6 million new jobs

The Jakarta Post  |  Tue, 01/06/2009 8:14 PM  

Despite expecting significant pressure from the global liquidity crisis, the Indonesian government appears upbeat as it says it can provide 2.6 million new jobs for the workforce this year. 

The economy is also expected to lose 2 million existing jobs as immediate fallout from the slowdown in global demand for Indonesian products. 

Speaking to reporters in Jakarta on Tuesday, Transmigration and Manpower Minister Erman Suparno said 600,000 of the 2.6 million would be work opportunities abroad. 

Erman said the government was allocating sizable resources to boost the competitiveness of Indonesia's workforce. The distribution of funds is slated in three major categories: Rp 369 billion (US$33 million) for job training, Rp 110 billion targeted for training in labor-intensive sectors and Rp 30 billion to support labor networking. 

In total, the government has allocated Rp 2.8 trillion to support the ministry's operations this year, he said. 

A key program that would ensure job creation, Erman said, was the government's housing development program, which should consume some Rp 430 billion this year. Funding for the housing program would depend on dividends coming from state-owned insurance firm PT Jamsostek. 

"We expect to build at least 50,000 homes and 100,000 homes at the most. If one house can absorb 10 workers, then we can employ at least 500,000 people," Erman said. (and)