Ridwan Max Sijabat and Nani Afrida, Banda Aceh – Nanggroe Aceh Darussalam could face an unemployment explosion in two years after reconstruction work in Aceh is completed, says a local manpower office official.

"Some 20,000 workers will lose their current jobs upon the completion of the reconstruction work in the province," chief of the provincial manpower and transmigration office, Syamsuddin Daud, said here over the weekend.

"They will lose their jobs after their contracts with foreign non-governmental organizations expire and a bigger part of those employed by the Aceh-Nias Rehabilitation and Reconstruction Agency will face a similar fate before the provincial administration takes over the reconstruction work in 2009."

He added that those recruited from North Sumatra, Java and other provinces were expected to go back to their hometowns but local workers would be seeking new jobs.

He said the provincial authorities should seek a solution to ease the unemployment problem in the province.

According to data at the manpower and transmigration office, the work force in the province has increased to 55,000 in 2007 despite the 2004 tsunami, which claimed more than 210,000 human lives.

Following the disaster, local and foreign NGOs have employed some 30,000 workers, mostly in the construction sector.

The chief of the industrial relations and labor norms section at the provincial manpower and transmigration office, M. Yunan, said that as of October, 1,200 local workers directly employed by foreign NGOs in construction project had had their contracts terminated and some 2,000 more would lose their jobs by the end of this year.

"The labor contract's termination is unavoidable and their employers are expected to pay an non-compulsory severance payment to allow them to survive while seeking new jobs," he said.

Arwin Soelaksono, operations director of Habitat for Humanity which has been building homes in Aceh Besar, Pidie, Aceh Jaya and West Aceh regencies, said thousands of workers employed in the organization's construction projects would have their contracts terminated by the end of this year.

He said the provincial authorities should intensify its development programs and projects and invite foreign companies to invest in the province to generate job opportunities.

Chairman of the provincial chapter of the Indonesian Employers' Association (Apindo) M. Dahlan asked the provincial authorities and regency administrations to intensify development projects to help address the unemployment problem.

He said Aceh would be able to generate more job opportunities because the province will receive Rp 30 trillion (US$3.2 billion) in special autonomy funds from the central government in the 2008 fiscal year.

"The unemployment problem could be eased if the provincial and regency administrations commit to setting a priority list of development projects to be completed this year and in 2008," Dahlan said.