Hadiya Sani Ashilla

2010513016
Human Resources Economics (Essay)

How to Improve the Quality Labor Market Information and Effort in

Indonesia
Employment is one of the important things by everyone because this is where we can feel the
interests of labor before, during and after the period of work and the interests of business
owners, governments, and society. Law Number 13 of 2003 concerning Manpower is the answer to
the government's political will in the field of labor law which has a noble purpose for legal
protection against labor in terms of:

a) Empowering and utilizing the workforce optimally and humanely,

b) Realizing equal employment opportunities and providing labor in accordance with the
needs of national and regional development,
c) Providing protection to the workforce in realizing welfare,
d) improving the welfare of the workforce and their families.

Judging from the demand for labor in Indonesia, the Indonesian labor market is experiencing a fairly
good development, this is evidenced by the increase in the number of jobs and the decline in the
open unemployment rate at the same time as a fairly high population growth. Despite the fact that
the demand for labor always fluctuates every period and year, as a result of various seasonal factors,
the turnover of the labor market and the climate of the world economy. Next we look at the
workforce in Indonesia from the supply side. The condition of our workforce is still low
competitiveness, both in terms of the level of education, skills, expertise with the field they are
engaged in, and others.

Based on data from BPS RI in the last 10 years, the trend of decreasing the unemployment rate in
Indonesia is quite high, where in 2005 unemployment in Indonesia amounted to 10.3 percent (of the
total number of working age) there was a decrease to 7.0 percent (of the total number of working
age) in 2015. However, along the way, there are several problems that cause the lack of maximum
absorption of labor that occurs in the availability of these jobs. Quoted from the report on doing
business in Indonesia, the World Bank and IFC (2012) stated that there are several main factors that
hinder the absorption of labor in Indonesia, namely the lack of educated workers, poor
infrastructure and a convoluted policy framework. With reference to the problems of employment
and unemployment, it is necessary to discuss the problems that are obstacles in creating jobs,
employment, and unemployment in an effort to increase and accelerate the country's economic
growth. In this problem, the workforce is grouped into:

• An Educated Workforce is a workforce that requires a high level of education. For example,
doctors, teachers, engineers etc.
• A Trained Workforce is a workforce that requires training and experience. For example,
driver, mechanic etc.
• Uneducated and Trained Workforce is a workforce that in its work does not require
education or training in advance. For example, tukag brooms, garbage men, etc.
From this, we need the right solution to the existing employment in Indonesia so that the things
that prevent workers from getting a job can be reduced. Starting from strategies and policy
recommendations in improving the quality of the workforce, factors that can affect performance,
and training indicators.

In general, efforts to overcome problems related to labor and unemployment in Indonesia can be
done with the following strategies:

1) Increased competence and labor productivity to enter the labor marketPolicy

Recommendations through:

a. Harmonization, standardization and certification of competencies through cooperation across

sectors, regions and countries within the framework of market openness with several strategies;

•Establishment of competency standards throughout the sector.

•Increased competitiveness of the national workforce

•Increasing productivity and national competence Increasing funding sources in order to

increase labor skills (implementation of skilled based industries)

•Improving the quality and quantity of training providers (quality and standardization)

b. Development of partnership programs between the government and the business world (both
central and local governments)

c. Development of training funding patterns

d. Structuring competency-based institutions

e. Improving the quality of the governance system of training programs to accelerate the
certification of work programs.

f. Identify and select sectors that have added value and high labor density

2) Improving the quality of placement services and empowering the workforcePolicy

Recommendations Through

a. Structuring competency-based institutions

b. Improving the quality of the governance system of the training program to accelerate the
certification of work programs.

c. Identify and select sectors that have added value and high labor density

3) Improving the quality of placement services and empowering the workforce Policy
Recommendations through:

a. Increasing labor force access to productive resources in order to improve the skills of workers
through:

•Job creation

•Development of microcredit for SMEs

•Increase labor-intensive activities

 •Encourage semi-unemployed workers to carry out productive businesses by utilizing natural
resources, human resources and appropriate technology.

b. Encouraging the development of a community-based productive economy through:

•Empowerment and assistance for community business

•Improvement of economic facilities and infrastructure

•Expansion of credit access for economic actors

•Improving the business climate through the provision of complete information

c. Facilitating mobility of internal and external work, as well as functioning the labor market
through:

•Improve the effectiveness and efficiency of the work market

•Integrating labor market information systems to respond to information needs of companies

•Cooperation with educational institutions, training and employers so that it is built with
sustainable cooperation

•Building partnerships with agencies or organizations both government and non-governmental

d. Protection of migrant workers is carried out through:

•Expanding cooperation in order to improve protection

•Improve governance of placement administration

•Equipping migrant workers with educational knowledge and expertise

•Increase the utilization of financial services for workers

4) Creation of harmonious industrial relations and improving the labor climatePolicy

Recommendations through:

a. Improving institutional governance and industrial relations cooperation

b. Realizing a fair wage system

c. Increase social protection for workers/ laborers. Applying the principles of industrial relations
in the prevention and settlement of industrial relations Improving the governance of work
requirements, welfare and discrimination analysis

5) Improving labor protection, creating a sense of justice in the business world and developing
a labor supervision system through

a. Develop a labor supervision system

b. Improving the quality of inspection techniques and investigation of labor norms and K3

c. Improving the quality of application of work norms and social security

According to Keith Davis in Anwar prabu Mangkunegara (2009:67) it is formulated that the factors
that can affect performance are :
1) Capability Factor

Psychologically, employee ability consists of potential ability (IQ) and reality ability (knowledge +
skill). This means that employees who have an average IQ (IQ 110 – 120) with adequate education
for their position and are skilled in doing their daily work, then they will find it easier to achieve the
expected work achievements. Therefore, employees need to be placed in jobs that match their skills
(the right man on the right place, the right man on the right job).

2) Motivational Factors

Motivation is formed from the attitude of an employee in dealing with work situations. Motivation is
a condition that moves employees who are directed to achieve organizational goals (work goals).
Mental attitude is a mental state that encourages employees to try to achieve maximum work
achievements. The mental attitude of an employee must be a psychophysically prepared mental
attitude (attitude mentally, physically, goals and situations). This means that an employee must be
mentally prepared, physically capable, understand the main goals and work targets to be achieved
and be able to take advantage of and create work situations.

3) Organizational factors

According to Bernardin, whether or not the performance that has been achieved by an organization
is influenced by the level of performance of employees, both individually and in groups, assuming
that the better the employee's performance, it is expected that the better the organization's
performance will be. In this regard, the approach to measuring the extent of individual employee
performance has six criteria, namely: (Robbins, 2002:260)

1. Quality of work

The quality of work can be measured by the employee's perception of the quality of the work
produced as well as the perfection of the task to the skills and abilities of employees.

2. Quantity

The quantity of work can be measured from the employee's perception of the number of assigned
activities and their results.

3. Timeliness

Punctuality is measured by the employee's perception of an activity that is completed at the

beginning of time until it becomes an output.

4. Effectiveness

The level of use of the organization's resources (labor, money, technology, raw materials) is
maximized with the intention of increasing the yield of each unit in the use of resources, the
effectiveness of the work of employees in assessing the utilization of time in carrying out tasks, the
effectiveness of solving tasks charged by the organization.
 5. Independence

Represents the level of a person's ability to perform his work functions without asking for help,
guidance from others or supervisors.

6. Work commitment

Is the level at which employees have a commitment to work with the agency and responsibility to
the organization.

According to Mangkunegara (2013, p. 62) states the indicators of training include:

a) Type of training, that is, based on the analysis of the needs of the training program that
has been carried out, it is necessary to conduct training on improving employee
performance and work ethics for the lower and middle levels,

b) The purpose of the training, that is, the purpose of the training must be concrete and
measurable, therefore improving work skills so that participants are able to achieve
performance,

c) Material, namely training materials can be in the form of management, scriptural,

psychological work, work communication, disipin, and work ethics,

d) The method used, namely the training method used is a training method with
participatory techniques, namely group discussions, conferences, simulations, exercises in
the classroom,

e) Qualifications of participants, that is, trainees are employees who meet the qualifications
of requirements such as permanent employees and staff who receive leadership
recommendations.

These three things can slowly increase the labor market so that it can reduce
unemployment in Indonesia.