INILAHKORAN, Bandung - The West Java Provincial Government is now implementing a persuasive strategy because large investments are not yet in line with labor absorption.

West Java Regional Secretary Herman Suryatman said that the realization of investment in West Java, which reached IDR 210.6 trillion in 2023, in fact did not have a significant impact on labor absorption.

This is because the majority of investment entering West Java is for capital-intensive industries that do not require a lot of labor absorption. It is not surprising that from data from the West Java Central Statistics Agency (BPS), the number of unemployed in February 2024 is still quite high, namely 1.79 million people.

There is only a decrease of 217 thousand people compared to February 2023 or around two million unemployed in West Java.

"This should be balanced. The fact is that it is not as easy as imagined. Maybe the absorption capacity of the workforce is limited," said Regional Secretary Herman at Gedung Sate, Bandung City recently.

Therefore, this capital-intensive industry must be overcome by creating skilled human resources (HR). What industrial needs are, must be able to be prepared by institutions that produce workers, so that they can be absorbed.

"For example, for an electric car factory. I think that is very specific and requires workers who have skills," he said.

Apart from that, persuasive efforts must also be made to prevent mass layoffs. The government must compromise, find solutions so that the industry will survive.

"Even though we also understand, currently it is not as easy as imagined, the situation is difficult," he said.

Not only that, creating a safe and comfortable ecosystem for investors is also mandatory. One of them is by making it easier to obtain business permits.

"It is ensured that licensing must be as easy as possible. Faster, cheaper, easier, better and safer so that the investment ecosystem is built," said Regional Secretary Herman.

Then the West Java Provincial Government, continued Regional Secretary Herman, also encouraged MSMEs. One of them is by providing capital flexibility, both through banks and BUMDs so that they can develop their businesses.

"We subsidize interest. We can't get caught up in loan sharks, emok banks. We have cooperatives, BUMDes, I think many of them include BJB. We are continuing to push so that districts/cities also work together with us," he added.

So he said, if layoffs must occur. At least there is an option for people, by starting entrepreneurship. The hope is that social inequality and unemployment can be reduced.

"Work is not the only solution. Entrepreneurship is no less important. Everything must be worked on, the important thing is that unemployment, poverty and the Gini index fall," he stressed.

(SOURCE)