The government must help 1.5 million Indonesians find work before the end of the year if it is to meet its target of filling 2.5 million jobs in 2008, Manpower and Transmigration Ministry Erman Suparno said.
With four months to go until the new year, Erman said the government remained optimistic Indonesia's industries could absorb a further 1.5 million workers by "improving labor-intensive industries".
One million Indonesians have so far found work in 2008.
However, Indonesian Employers Association chairman Sofjan Wanandi said it was impossible to absorb 1.5 million laborers within the period. "The government may be optimistic, but the truth is it will be difficult," he said.
Without growth in labor-intensive industries, unemployed people will turn to the informal sector for employment, including running stalls or selling newspapers on the street, Sofyan said. "There is no protection for workers in the informal sector," he added.
According to the Central Statistics Agency (BPS), a 1 percent growth in Indonesia's economy can absorb a maximum of 400,000 laborers. However, statistics have shown that such a rise only absorbs 180,000 workers.
In February, the number of unemployed people stood at 9.43 million, down from 10.01 million a year earlier. The number of workers was 111.48 million – most of whom work in the informal sector.
Sofjan said if the government improved infrastructure, labor-intensive industries might develop.
"Since the 1997 economic crisis, the government has not paid enough attention to labor-intensive industries. Only electronic, food and beverage industries (are the labor-intensive industries that) have grown lately."
The textile industry, for example, has seen its number of laborers decrease as more sophisticated machines have replaced their human counterparts.
According to the Manpower and Transmigration Ministry, the number of workers who have been fired so far this year declined to 1,535 from 22,087 in 2007.
Over the past few years, industries engaged in the telcom and natural resources sectors have seen significant growth. However, these industries are not labor intensive.
Erman said he recognized the phenomenon; "That is why unemployment remains high. Every year, we have about 2.5 million new laborers."
The BPS said employers tended to target workers that had recently graduated from school, leaving little room for other unemployed people to find work.
"Every year, there are about 2.5 million fresh workers looking for jobs, and employers can provide about the same number of jobs – which are mainly given to the new workers (at the expense of existing ones)," BPS chairman Rusman Heriawan said. (JP/Aditya Suharmoko)