Labor and The Investment

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COMPASS/LUCKY PRANSISKA Illustration labor action: thousands of labourers from Indonesia trade unions Confederation headed toward Merdeka Palace in Jakarta for berunjuk sense, Thursday (12/7/2012). They protested against the regulation of the Minister of labour which governs the contract workers (Asia).

KOMPAS.com-Labor is the key to Indonesia's economic growth. This is not the preamble. This is the inheritance that is unfortunately not yet treated seoptimal as possible.

With a gross domestic product (GDP) in 2012 about 800 billion US dollars, Indonesia is a country with the economic power in the world. By 2025, Indonesia is expected to rise to 10th in the rankings.

"Number 6, if you want to, can," said the Secretary General of the Organization for economic cooperation and development (OECD) Angel Gurria on one occasion.

GDP is one of the tools to measure the economic growth of a country formed by six sources of growth. The source of the growth is domestic consumption, government spending, gross fixed capital formation or investment, and export-import gap.

During this time, domestic consumption becomes a major contributor to economic growth in Indonesia. But beginning in 2013, the pendulum shifted to investment. With the scenario of economic growth of 6.8 percent, investment is expected to be a key contributor to the growth of 11.9 percent.

With 240 million inhabitants and about 50 million of which is the growing middle class, Indonesia is the market attractive. Moreover, the predominance of productive age demographic dividends.

In terms of natural resources, Indonesia had an abundance. So far, its utility is still less than 20 percent. That is, the space is still sprawling expansion, both in the sector and geographically.

In the meantime, the international situation is still giddy from the crisis in Europe and the United States. This condition is in some ways contributed to encourage capital flows to the developing countries with medium income, such as Indonesia.

The investment was already in sight! And, that's the mainstream investment that will bring Indonesia ship drove until 2025 as the country with the second largest economic power or even to 10-6 in the world.

This year, investment grew significantly. Data from the Investment Coordinating Board (BKPM), the realization of the investment in 2011 at a cost of us $ 251,3 trillion from Rp 240 billion target. While the target in 2012 at a cost of Rp 290 trillion, the realisation from January to September were Rp 229,9 billion or 81 percent.

BKPM optimistic investment will be translucent Rp 300 trillion. This does not include the realization of investments in the banking sector, capital market, and energy, not a record INVESTMENT. The value is much greater because the portion at the BKPM is only 16-17 percent.

But remember, the investment always offer two options. First, the investment without resources. Indonesia became solely an object of exploitation without control and without the added value for the national interest. Natural resources dredged only converted into tax value is small.

Both are investment wefare. Investments that take advantage of natural resources into value-added industries. This absolutely requires human resource factor for investment needs skilled and educated to compete. Investments need scientists, engineers, and other experts. In this context, labour became the key.

One of the challenges is the average labour productivity in all sectors is still very low. That comparison, Indonesia's labor contribution to GDP is 6,000 dollars, while Malaysia's 14,000 u.s. dollars.

Labour productivity need to be emphasized, not solely in the hands of workers. But in many ways, the cause is outside of the Labour Party, for example a production machine that is generally outdated and technology transfer that is not the way.

Once again, it is now her time investment. Premier League Preview: inefficiency in the bureaucracy and infrastructure it should quickly dibirukan. However, labour is the inheritance of the pressing to be treated optimally. (FX AS THE SUPREME S)

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