OUTLINE THE GOVERNMENT POLICY TOWARD HIGHER VALUE ADDED ACTIVITY ON - PowerPoint PPT Presentation

OUTLINE

THE GOVERNMENT POLICY TOWARD HIGHER VALUE ADDED ACTIVITY ON INCREASING LABOUR SKILL  Based on BPS data, around 60% of labor supply are not matched with the industry need.  improve the vocation school matched with the industry needs. Improving The  giving incentive to the firms in order to provide opportunities to their workers. Quality of  the industry and vocational school should created together the curricula of training and Human Resource apprenticeship.  simplifying the processing of investment licenses. Improvement of  reducing the number of licenses, such as streamlining local business licenses. Investment  focusing on transport & logistics infrastructure investment. Climate The Government Policies Remove the  revised the constitution law related with the labor which were made on 2003. Inflexibility of  focusing regulation affecting hiring and firing of workers, severance pay, and wage adjustments. Labor Market 3

Economic Growth and GINI Index After 2012, economic growth in Indonesia decreased, but better than Malaysia growth 4,9%, Thailand growth 3,97 and Vietnam 5,8%. Economic Growth and GINI Index Keterangan : Gini Indeks Economic Growth 4

CONFIGURATION ON ECONOMIC WITH EQUITY POLICY, URGENTLY NEEDED IN VARIOUS SECTORS To syncronize social • Fair provision of land access to the entire community forestry to land reform • Prioritization of TORA receiver, based on land Gini ratio, poverty, and need of land • Agricultural development by agglomeration or cluster method Various research • LP2B determination to prevent agricultural land ownership by non-agricultural owner and issuance of • Land consolidation for paddy field Landless Farm A • Seed research, post-harvest facilities, logistic synergies, and seed market , agricultural new policy based equipment and machinery. on equality is Lands • Data collection and enforcement law of palm land, including land bank collection • Data collection and determination of other plantation replanting policy required to Plantation • Corporate the cooperative, supported by private and state enterprises to increase the value added achieve optimal • Research support, market synergy, crops off-taker and downstream value chain efficiency in • Social Housing Urban Poor & sectors that have • Housing financing Affordable housing • Land bank and affordable land prices great impact to • Government enforcement of spatial policy community needs • Integrated of fishermen and seaweed cultivation Fisherman & Seaweed • Aquaculture and fishermen value chain cultivation • Private investment for processing and seaweed off-taker • Progressive tax, capital gain tax and unutilized asset tax Fairness tax system • Fairness of Government spending B Opportunity • Industrial development based natural resources and value chain CONFIGURATION to • Minimize the fund’s interest gap between large scale company and small scale company. Manufacture ON ECONOMIC • Protecting certain market segment from integrated business Start Business and ICT WITH EQUITY • The arrangement and data collection of traditional/ modern market, traditional/ modern store POLICY • Spacing, Location and zoning of market Retail and Market • The obligation to absorb local products • Fair access to distribution system • Improvement of KUR (small business loans) system towards non-bankable financing Government Budget • More accessible procurement program for below medium entrepreneurs C • Sectors identification and prioritization of leading industry and profession Human Resources Vocational, • job matching scheme between industry and vocational Development Entrepreneurship and • Focus on skill, collaborative, flexibility and impact Labour Market 5 • Early childhood intervention

VOCATIONAL AND WORKFORCE ACTION PLAN FOR ECONOMIC WITH EQUITY POLICY There are five mainly policies : Vocational programme Government Region-based based on large amount Programme strategic of workforce (60% of programme Indonesian’s workforce) 1. Farmers 1. 35,000 MW electricity programme 1. Vocational programme to support 2. Shopkeeper/retail 2. Preparing Suveyors KEK or KI 3. Cleaners, helpers, babysitters, caregivers 3. Agricultural extension programme 2. Vocational programme to 4. Workforce on miners, construction and 4. Health sectors pesantren region-based manufacture 5. General clerks 2 3 1 Vocational TVET Roadmap programme for strong industry association, and ongoing vocational 1. Job field reclassification from KBLI to system GICS 1. Automotive sectors 2. Position reclassification from KBJI to 2. Tourism sectors ISCO 3. Transportation sectors 3. Priority of job field and position reclassification 4 5 6 6

I.1 VOCATIONAL PROGRAMME BASED ON LARGE AMOUNT OF WORKFORCE: FARMERS Position as having most number of workforce in Indonesia which is relatively low prosperity level, subsistence farmer transformation need to be done in order to increase the welfare. Value Chain Agribusiness based Agricultural Farmers Collector Food Wholesale Farm Input Harvesting (Productions) Merchant Processing and Trade Suppliers Market Oriented Skilled Farmers Seed Drying Retailer Fertilizers Milling Machinery Consumer Sorting Tools Convert to whole agribusiness valuechain especially farm input suppliers and harvesting Additional Skilled Craving Craftsmanship Drawing Creative Industry Subsistence Farmers Farmers 28,985,183 people Permanent Construction Worker (27%) Construction Temporary Construction Worker Training Standardization Specialization Worker Move to urban area/ Industrial area manufakture sectors Move to fruits/ horticulture commodity High Labor Intensive Agriculture Large farm between 2.000-20.000 hectare was planned and well considered through output and input (fertilizer, seeds, water availability and post harvesting technology). So it will make production more efficient. Efficient farm size for every commodity must be considered 7

I.2 VOCATIONAL PROGRAMME BASED ON LARGE AMOUNT OF WORKFORCE: SHOPKEEPERS/RETAIL Shopkeepers must improve their competences to be transformed still needed by modern marketing and digital market through cluster based good network Integrated scheme of store/conventional market in digital/modern market Modern Market Skill Required: Carrefour, Giant, Alfamart, Economy integration Indomaret, others in cluster based goods • Photographs network, for example: • Packagings Conventional Market • Application Platform • Fashion’s Production • Internet Traditional market, Village (upload/download) grocery store • Cotton farmers • Package Delivery shopkeeper/retail • Thread craftsmen • Internet banking 17,570,308 people (15%) • Studs suppliers • Promotion via social Digital Market • Tailor media Tokopedia, Lazada, Blibli, Matahari Mall, Bukalapak, others  Conventional market should grab the opportunity of modern and digital market development by adapting the marketing concept and digital economy based skill.  The approach should be done was clustered goods network based economy development. So that the economy of some region can growth, the shopkeeper and retail should improve their skill as markets required. 8

I.3 VOCATIONAL PROGRAMME BASED ON LARGE AMOUNT OF WORKFORCE: CLEANERS AND HELPERS Cleaners and Helpers could be directed to four positions which are needed by domestic and abroad orientation, through standardized and certified specific training Online services Cleaners Babysitters cleaners and and helpers Helpers Skilled 8,201,410 people Caregivers Maid/Butler (7%) Required Skills • Cooking, table manner • Baby and Toddlers sitting skill (for babysitter) • Elderly health skill (for caregivers) • Local Language • Ethics/attitude and local culture • IT literacy/application and social media (for online cleaners/helpers) 9

I.4 VOCATIONAL PROGRAMME BASED ON LARGE AMOUNT OF WORKFORCE: LABOUR AND GENERAL KEYBOARD CLERKS Profession like mining labour , construction and manufacture , general & keyboard clerks have a tendency to be replaced with the use of technology. There for scheme preparation of workforce absorption need to be done ACTION VOCATIONAL SCHEME Education Training Internship Required Skills Certified Skilled Workers • Certified training for certain Mining Labor, competencies Construction Machine Operator & and Manufacture • Team work & Leadership Technical worker 7,948,250 peoples • Work Safety & Health (7%) Automotive Service Worker, Airport Operations Education Training Internship Required Skills Social Media Administrator • Marketing & Social Media General & • Design Graphics Keyboard Online content writer Clerks • Public Relation 5,032,226 peoples • Writing (4%) Graphic Designer Assistant 10