7.2 Million RIs Unemployed, Ministry Of Industry Expects Investment To Be Able To Absorb Manpower

JAKARTA - The Central Statistics Agency (BPS) reported that the unemployment rate in Indonesia reached 7.20 million people as of February 2024. The number of unemployed people was recorded to be lower than the same period in 2013, which was 7.99 million people.

Secretary-General of the Ministry of Industry Eko SA Cahyanto said that his party encourages labor absorption in the industry by absorbing greater incoming investments.

"What we encourage to increase labor absorption the fastest is new investment. That's direct, direct. We don't differentiate whether it's capital-intensive or labor-intensive," said Eko during a media gathering at the Ministry of Industry Office, Jakarta, quoted Wednesday, May 8.

It is known that manufacturing investment in the second quarter of 2024 was IDR 161.1 trillion. This figure continues the downward trend from the realization in the third quarter of 2023 of IDR 163.7 trillion and the fourth quarter-IV of 2023 of IDR 162.3 trillion.

Eko assessed that, in addition to investing in the manufacturing industry sector, the expansion carried out by the industry can also be a driving force absorption.

"After there is a new investment, then expansion. That absorption can be large. What is already existing is what maintenance needs to be done," he said.

Meanwhile, to prepare human resources, the Ministry of Industry has a vocational program. The Ministry of Industry has an Industrial Vocational Revenue Line (JARVIS) program to absorb prospective students and students who will attend education in vocational education units within the Ministry of Industry.

This year, the Ministry of Industry increased the quota for admission of new students through JARVIS to 879 people or an increase of 13.3 percent compared to 2023. JARVIS quota at SMK is 2,730 people, while in polytechnics/cacademics the community has a JARVIS quota of 4,796 people.

The Ministry of Industry's education unit itself has high absorption of graduates to industry and has made various achievements. For graduates in 2023, currently the fastest absorption reaches 93.8 percent for vocational schools and 86 percent for polytechnics, which is in approximately five to six months after graduation.

"If there is a new investment, he is committed to entering, we will prepare human resources from now on. If we don't prepare it when it starts (production), HR is not available," he added.