Road to IDF 2019 Semarang Preview: From the Industry to the Unique Market, How Central Java Overcomes Unemployment

Unemployment trend in Central Java is beginning to shift to those who graduated from Vocational High School (SMK). The Head of Workforce Placement and Transmigration of the Manpower and Transmigration Office (Disnakertrans) in Central Java, Ahmad Aziz, said that previously, unemployment was predominantly prevalent among Junior High School and lower level graduates. Cited from Tribun Jateng, there are currently 800 thousand people in Central Java who are unemployed, most of them are SMK graduates.



"SMK graduates have the necessary skills. We must identify who wants to work in the formal and private sector. Also, in SMK, there are a number of majors, such as automotive and IT. They can work for companies according to their field or open their own business," said Aziz, late February 2019.



Azis mentioned, despite many jobs that are available, there are still several issues that are causing the high rate of unemployment. For example, there is a mismatch between mastered skill and job availability, not to mention the lack of infrastructure and facility support. 



"Second, is the level of wage attractiveness. Many workers are crowding in cities with high Minimum Regional Wage (UMR). In Central Java, the highest UMR is in Semarang, which is IDR 2.4 million. Other cities have averagely less than that. So, it can be ascertained that they are looking for jobs in cities with high UMR,” revealed Aziz.



The Central Java Government is focusing its efforts on on-the-job training and professional certification to address its open unemployment. The Professional Certification Coordination Agency (BKSP) of Central Java is striving to complement Professional Certification Agencies (LSPs) in Central Java in order to meet the needs of its workforce.



"These SMK graduates will definitely need certificates to increase their selling points in finding jobs,” said Head of BKSP of Central Java, Hertoto Basuki, as quoted from Liputan6.com.



Some of the people expected to use these LSPs are workers without professional certification and SMK graduates are not planning to continue to higher education. 



Overall, the Central Java Government is focusing more on labour-intensive industries. In addition to the garment, another industry requiring plenty of labour is furniture. 



The garment industry in Semarang, like PT Sandang Asia Maju, becomes one of the companies that absorb skilled workers graduating from vocational education. Their facilities also provide opportunities for people with disabilities to work. This good practice has received appreciation from the Ministry of Manpower. 



Following the national program, Central Java is collaborating with the private sector to develop vocational education and professional certification. One of which is by engaging Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) Indonesia and the Chamber of Commerce and Industry of Germany. 



Cited from Suara Merdeka, mid-February 2019, Director of Central Java Chamber of Commerce and Industry, Agustina Devi, said that she has been working together with IHK (German Chamber of Commerce) and Industry of Germany for almost 20 years. It started with IHK Konstanz to build the capacity of Central Java Chamber of Commerce and Industry as an organisation for the business and industrial world, then followed up with cooperation with IHK Trier in developing a double vocational system to generate skilled and competent workers who are ready to join the industrial world.



Good Jobs from the Village Prevent Urbanisation


High minimum wage in Semarang has caused workers from other regions in Central Java to flood into the provincial capital. To address this, establishing good jobs at villages can become the solution to overcome urbanisation. An example is what emerged at Ngadiprono, Ngadimulyo Village, Tedu Subdistrict, Temanggung District.



The Papringan Market in this area opened job opportunities so that the people of Ngadiprono did not need to go to the city. This educational market has become a tourism magnet, in addition to serving as a place to preserve the environment. The Head of Mata Air Ngadiprono Community, Imam Abdul Rofiq, said that around IDR 200 million of transactions are circulating in Papringan Market each month. There are hundreds of villagers directly involved, and thousands of people from other areas visiting Ngadiprono every month.



Papringan Market, which is situated on a 2,500-meter square bamboo garden, now adds a 3.5-hectare area for the bamboo park. This small hill, people call it the Koang Hill, is now more beautiful with the establishment of telasah roads, becoming a part of the bamboo garden conservation of Papringan Market. This road is made together by the villagers using local material, is suitable for the village’s condition, and able to absorb water.  



Quoting Mongabay Indonesia, bamboos, coffees, and other plantations grows on Koang Hill. However, it lacks in maintenance and is not productive. With the help of Community Architects (Arkom) of Yogyakarta, people were asked to map the potential and build telasah road – a road-hardened with pieces of stones or concretes.



“People now have data, garden map, and seasonal calendar. They made it themselves. Before, some of the farmers did not know the total area of their garden, what plants grew in it, or how much its yearly produce,” said Imam.



The success of Mata Air Ngadiprono Community in managing Papringan Market has become a good practice in creating inclusive job opportunities. This good practice was presented at the Road to Indonesia Development Forum (IDF), on March 21, 2019, in Semarang. 



Imam presented Papringan Market at IDF along with others such as the professor in development economics from Diponegoro University, Kesi Widjajanti, General Manager of PT Sandang Asia Maju Abadi, Dedi Mulyadi, Team Leader of Ready to Work Accelerator Program, Toto Purwantoro, and Rudy Sjumali of GIZ Indonesia. 



This Road to IDF, which was organized by the National Development Planning Agency (Bappenas), also invited the representative of Central Java Province focusing on vocational education and professional certification, namely the Head of Competency Certification Coordination Agency of Central Java, Hertoto Basuki. 



They gathered and discussed with the participants to formulate policy ideas on good jobs. The result will be presented during this year’s IDF on July 22-23, 2019, in Jakarta. Let’s join and present your ideas at the Road to IDF Semarang City, Central Java!  **