Opprotunities and challenges of inclusive employment to people with disablities : A case study in Yogyakarta City

Abstraksi

I. Background Many problems faced by Indonesian government in setting the right policy in terms of employment. The right policy will effectively encourage economic growth in the future and create equal benefits of the growth to all people. Economic growth is one ultimate goal that will bring Indonesian society to a better level of welfare. However, the main challenge to achieve economic growth in most countries is unbalanced distribution of income either by regions or by individuals. There are four reasons of high inequality in Indonesia. They are : 1) Inequality of opportunities, 2) Unequal jobs, 3) High wealth concentration, and 4) Low resiliency (World Bank, 2016). At the other hand, Indonesia will experience a demographic bonus in the future where the number of productive people is projected to be 174 to 180 million people in 2020-2024 and around 200 million people in 2030. At the supply side, Indonesia will have abundant resource of workforce with various level of skills. However, on the demand side, there will be a change of demand for workforce due to the rise of industrial revolution 4.0 where a number of work functions will be replaced by machines, and at the same time there is a new need for IT-skilled workers. In the spirit of creating equal benefit of economic growth, Indonesia developed inclusive growth index that includes three pillars of development, namely 1) high economic growth, 2) equal income distribution and poverty reduction, 3) improvement of access and opportunities. Employment issue is reflected in sub-pillar working opportunity which is included in the first pillar. Working opportunity is measured by three indicators : 1) level of employment opportunities, 2) percentage of working population with working hours of more than or equal to 35 hours a week, 3) percentage of workforce with education level higher than high school. However, the index does not cover the issue of inclusive employment for minority groups such as group of people with disabilities. According to disability statistics issued by United Nations, Indonesia has disability prevalence of 2.1% in 2015. It means that 2.1% of Indonesian population is living with disabilities, and from that number, most of them are in the productive age. However, it is difficult for them to enter the labor market because of many obstacles. The government already made a regulation that encourage people with disabilities to participate in the labor market. According to Constitution No. 8 2016, government, local government, state-owned enterprises, local-owned enterprises should employ at least 2% of people with disabilities, and private companies should employ 1% of people with disabilities. Local Government Regulation of Yogyakarta province No. 4, 2012 Regarding Protection And Fulfillment Of People with Disabilities Rights declares every person with disabilities has similar rights and opportunities to get a job and / or do decent work including work training and job placement. According to The Regulation, Local Government and stakeholders have several duties such as organize training, provides job information and job placement for people with disabilities. Yogyakarta city has a population of 417.744 people in 2017 and per capita gross domestic regional products (GDRP) of Rp.69.218.903 in 2016. This is the highest per capita GDRP among 1 city and 4 regencies in DIY, namely Yogyakarta, Sleman, Kulon Progo, Gunungkidul and Bantul. Yogyakarta is the second largest contributor of GDRP to DIY province after Sleman regency, although per capita GDRP is the highest. Based on a study by BPS, there are three dominant sectors in Yogyakarta city. The contribution can be seen as follows : Dominant sectors 2012 (%) 2014 (%) 2016 (%) 1) Manufacturing industry 13,76 14,21 13,68 2) Accommodation, foods and beverages 11,92 12,88 13,36 3) Information and communication 12,59 10,83 10,37 Source : BPS, 2017 In 2018, number of people with disabilities in Yogyakarta city is 3.477, which is less than 1% of total population. This research attempts to map economic sector in Yogyakarta city in which people with disabilities are mostly employed, and give recommendations of further policy to optimize their participation in the labor market, also to ensure the readiness of the sectors to employ people with disabilities. II. Conceptual framework and research questions A. Conceptual framework To be able to achieve the goal of optimizing participation of people with disabilities in the labor market, there should be a match between supply side and demand side, where people with disabilities can find suitable jobs that can adjust with their physical limitations, and on the other hand the employers can improve their productivity with their work. Therefore, there are requirements for an accurate database, proper regulation, and public infrastructure that can support mobility of people with disabilities. B. Research questions This research attempts to answer the following questions : 1) What is the economic sector that mostly employed people with disabilities ? 2) What are opportunities and challenges to optimize participation of people with disabilities in the labor market ? III. Methodology This research will present the findings of data analysis on people with disabilities in Yogyakarta city issued by Office of Social Affairs of Yogyakarta city in 2018 and create a map of employment. In addition, SWOT analysis will be conducted to identify opportunities and challenges for them to enter the labor market.