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Hanif Dhakiri: If Low-level Workers Are Found, Its a Violation

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19 October 2018 13:51 WIB

Manpower Minister Hanif Dhakiri. TEMPO/Dian Triyuli Handoko

TEMPO.CO, JakartaBack from a working trip to Hong Kong, Manpower Minister Hanif Dhakiri was faced with a barrage of questions over the vast number of Chinese workers in Indonesia. He told Tempo reporter Pingit Aria last week, in an interview at his office, that foreign workers were allowed to work only in certain areas and sectors needing specific criteria. Additional responses to previous questions sent by email were added to the interview.

Is it true many foreign workers, mainly from China, have been working in the country all of this year?

There are only 70,000 foreign workers in Indonesia. Compare that with our 240 million population and our 129 million workforce. That's even less than 0.1 percent. So don't worry about the issue of foreign workers. It's not true there's an exodus, because we are very selective when issuing permits. Look at Malaysia, which has a 27 million population. There are some 1.2 million Indonesians work there and in Singapore, 50 percent of the workers there are foreigners.



How many work permits have been issued to Chinese working in Iindonesia? 

Based on work permits issued by the Manpower Ministry to Chinese workers since January 1, 2014 to May this year, there are 41,365 people. Chinese workers staying on in Indonesia as of June 20, 2015 is about 2,837 people.



In what sectors do they work?

Sectors filled by the Chinese workers from January 1, 2014 to May 31 this year are trade and services, with 26,579 people. Some 11,114 of them work in the industrial sector and 3,672 in agriculture.



Last June, you issued regulations requiring foreign companies to hire 10 local workers for every one foreign worker recruited. What is the rationale in that?

We are convinced that in terms of competence, local workers are a good as foreign workers for the majority of positions and professions. So we believe local workforce must be given priority and that is the instrument to limit foreign workers. Besides, for every foreign worker hired, he must be accompanied by three local workers, who will benefit from the transfer of technology, knowledge and other topics.



Are there exceptions to your recruitment formula of one foreign worker to 10 local workers?

Yes. The exception is bigger for the construction industry, but they are valid only for six months and cannot be extended.



These construction workers have come under public spotlight, like those from Cemindo Gemilang, Cimona in Banten and the steam-generated power station at Celukan Bawang in Bali. What is your comment on that?

The permits issued to foreign workers for the two factories are temporary, only six weeks during the construction phase, not the production phase. After that, they must go home. Foreign workers can only hold positions requiring special expertise. If we find low-level workers, there is surely a violation and we will act against them.



You withdrew the requirement for foreign workers to speak Indonesian. Was this at the request of President Joko Widodo? 

Correct. In the new regulation, Indonesian is no longer a requirement for foreigners to work in Indonesia. But they must work with local workforce for the transfer of technology. Essentially, this regulation was formed to support the acceleration of investment in Indonesia. This investment is linked to development and the provision of employment.



What is the procedure to allow foreign citizens to work in Indonesia? Is it true intermediaries are stll involved?

Regulations on foreigners wanting to work in Indonesia has been made easier. The procedure is simpler and faster. The system is done online, through the One Door Integrated Services set up at the Capital Investment Coordinating Board (BKPM). (*)

Is it true many foreign workers, mainly from China, have been working in the country all of this year?

 

There are only 70,000 foreign workers in Indonesia. Compare that with our 240 million population and our 129 million workforce. That's even less than 0.1 percent. So don't worry about the issue of foreign workers. It's not true there's an exodus, because we are very selective when issuing permits. Look at Malaysia, which has a 27 million population. There are some 1.2 million Indonesians work there and in Singapore, 50 percent of the workers there are foreigners.



How many work permits have been issued to Chinese working in Iindonesia? 

 

Based on work permits issued by the Manpower Ministry to Chinese workers since January 1, 2014 to May this year, there are 41,365 people. Chinese workers staying on in Indonesia as of June 20, 2015 is about 2,837 people.



In what sectors do they work?

 

Sectors filled by the Chinese workers from January 1, 2014 to May 31 this year are trade and services, with 26,579 people. Some 11,114 of them work in the industrial sector and 3,672 in agriculture.



Last June, you issued regulations requiring foreign companies to hire 10 local workers for every one foreign worker recruited. What is the rationale in that?

 

We are convinced that in terms of competence, local workers are a good as foreign workers for the majority of positions and professions. So we believe local workforce must be given priority and that is the instrument to limit foreign workers. Besides, for every foreign worker hired, he must be accompanied by three local workers, who will benefit from the transfer of technology, knowledge and other topics.



Are there exceptions to your recruitment formula of one foreign worker to 10 local workers?

 

Yes. The exception is bigger for the construction industry, but they are valid only for six months and cannot be extended.



These construction workers have come under public spotlight, like those from Cemindo Gemilang, Cimona in Banten and the steam-generated power station at Celukan Bawang in Bali. What is your comment on that?

 

The permits issued to foreign workers for the two factories are temporary, only six weeks during the construction phase, not the production phase. After that, they must go home. Foreign workers can only hold positions requiring special expertise. If we find low-level workers, there is surely a violation and we will act against them.



You withdrew the requirement for foreign workers to speak Indonesian. Was this at the request of President Joko Widodo? 

 

Correct. In the new regulation, Indonesian is no longer a requirement for foreigners to work in Indonesia. But they must work with local workforce for the transfer of technology. Essentially, this regulation was formed to support the acceleration of investment in Indonesia. This investment is linked to development and the provision of employment.



What is the procedure to allow foreign citizens to work in Indonesia? Is it true intermediaries are stll involved?

 

Regulations on foreigners wanting to work in Indonesia has been made easier. The procedure is simpler and faster. The system is done online, through the One Door Integrated Services set up at the Capital Investment Coordinating Board (BKPM).


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