Give Us Money and Jobs, Indonesia Says to China
Indonesia—Indonesia has been betting on China to help bankroll its many planned infrastructure projects. Now it’s banking on Asia’s biggest economy to tackle another issue in this nation of 250 million people: unemployment.
The government is encouraging foreign investors to put their money toward projects that boost economic growth and also “create new jobs and reduce unemployment,” said a statement from the Ministry of Manpower and Transmigration following a meeting between minister Hanif Dhakiri and China’s deputy labor minister.
During the meeting at the International Labor Conference in Switzerland, Mr. Dhakiri invited China, “to enhance cooperation in the field of employment, including job training, productivity enhancement, research,” the statement said.
Indonesia’s unemployment rate is around 6%, with 7.4 million people out of a working population of 122 million jobless, according to the latest data. The majority work in the informal sector. In addition, a growing number of youth are expected to enter the work force in the next five years, with estimates that around 15 million new jobs will be needed employ them.
President Joko Widodo’s administration aims to create two new million jobs every year for that purpose. Thus, investments that are “labor intensive” are highly desirable, said Mr. Dhakiri.
China, which has shown strong interest in investing in big-ticket projects, has welcomed the idea, the minister said, according to the statement.
During a visit to Beijing in March, President Widodo witnessed the signing of around $63.4 billion in preliminary commitments from Chinese companies, much of which would go toward infrastructure development. Direct investment from Chinese state companies has been used to build large power plants and other infrastructure, such as the longest bridge in Indonesia.
Khairul Anwar, director general for training and productivity at the manpower ministry, said power plant projects have provided jobs for mechanical workers and electricians.
But many of the jobs available require skilled professionals – which the country is lacking.
Mr. Anwar said the ministry is working to improve training for unskilled workers and will work to link up companies looking for employees with qualified candidates. He said it’s important for training centers to know what kind of jobs companies currently need, so that they can supply the demand.
The ministry doesn’t have a figure on how many people have been employed by the infrastructure projects that Indonesia has begun rolling out, Mr. Anwar said. But it’s aiming to generate at least a million new jobs this year to fulfill the needs of projects created through both foreign and local investment.
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