Unemployement and Economy of Indonesia

Unemployment or unemployed is a term for people who do not work at all, are looking for work, worked less than two days during the week, or someone trying to get a decent job. Unemployment is generally caused because the amount of the work force or job-seekers are not proportional to the number of jobs that exist that is able to absorb it. Unemployment is often a problem in the economy due to the presence of unemployment, productivity and incomes will be reduced so that it can cause poverty and other social problems.

The unemployment rate can be calculated by comparing the number of unemployed by the number of labor force that is expressed in percent. Lack of income led to the unemployed should reduce their consumption spending which led to decreased levels of prosperity and welfare. Prolonged unemployment can also cause adverse psychological effects on the unemployed and their families. The unemployment rate is too high can also cause political chaos and social security so that interfere with growth and economic development. Long-term consequences are declining GNP and income per capita of a country. In developing countries like Indonesia, known as the term "disguised unemployment" in which the work should be done with little labor, done by more people.

          Although many types of unemployment that emerged in the Indonesian economy, but unemployment will generally give more adverse implications for the country's economic activity. Unemployment will cause the economy are the conditions under full capacity, a capacity that dihaparkan. Unemployment will also burden the labor force, causing a truly productive is becoming increasingly severe, while unemployment will cause social tendencies problems of crime and other social issues. the first composition of the population of Indonesia. Of the entire population of Indonesia, we divide the working age population (PUK), the population has aged "proper" work that is, between 15 years to 65 years. Though in fact, like other developing countries, the population under the age of 10 tahunpun has worked. While the general population beyond working age is called outside the working age population (PDUK), ie, the toddlers and the elderly. The types of unemployment can be divided based on the cause and characteristics.

 As for the types of unemployment based on the cause are Unemployment Friksionil, Unemployment Friksionil isnamely unemployment that occurred because someone chose idle while waiting for better jobs, which provide facilities and better state. The second one are Structural Unemployment, Structural Unemployment is namely unemployment that occurred because someone was dismissed by the company, because the condition of the company's business declined, so had to reduce the workforce. The third are Unemployment Technology, Unemployment Technology is the unemployment that occurs as it begins to use technologies that replace human labor. Often unemployment is due to the ability and skills of workers who can not adapt to the needs of the company. The fourth are Unemployment is cyclical, that is unemployment that occurs because of a reduction in workforce as a whole, due to economic slowdown and recession. So that is similar to structural unemployment, only on pengagguran this type, the incidence is more widespread and thorough.

      While the types of unemployment based on the character are Unemployment, Unemployment is created as a result of accretion of jobs is lower than the increment of labor. As a result of the economy the greater number of workers who did not get a job. The effect of this situation in a long enough period of time that they did not do a job. So obviously they are unemployed and full-time, and therefore called the open unemployment. And then the last one are Hidden Unemplyment, Hidden Unemployment is mainly a form of agriculture or services sector. In many developing countries is often found that the number of workers in an economic activity is more than is actually necessary for him to run their activities efficiently. Excess labor is used is called hidden unemployment.

The strength of economy of Indonesia are over the past 20 years, labour productivity improvements have accounted for more than 60% of economic growth, and these gains came largely from improvements within sectors rather than a shift out of agriculture. Mining, oil, and gas account for only 11% of Indonesia's nominal GDP, while services account for roughly half of economic output. Over the past ten years, Indonesia's economic growth has been less volatile than any mature economy in the world, government debt as a share of GDP has fallen by 70% and is now lower than in 85% of OECD countries, and inflation has fallen from 20% into single figures. And then Indonesia Have a potential in independent business sector because in Indonesia independent business sector still at minimum point, Indonesia have lots of people that can make the independent business sector to grows up

There are many weakness of economy of Indonesia at first one is Poverty and Unemployment continue to be an issue to the Indonesian economy. Despite having jobs increase over the past decade of economic growth, Indonesia still claims a 9.1% unemployment rate with 17.8% of the population below the poverty line. Weak Infrastructure also ranks among the economic problems of Indonesia. With smaller markets and small business owners typically run out of business by larger companies with means to provide their own sources of power, competition tends to favor larger companies. However, power outages across Indonesia are reported to negatively affect productivity, with the heaviest burden falling on those who depend on public power systems due to the expense of generators. Several other factors weaken the infrastructure of the country. Among them are:

-6.9 % average proportion of hours lost due to power failures

-67.6% of workers without their own vehicles for work use

-34.5% of manufacturing establishments without private generators

The second one is Corruption and piracy plague the heavily traveled waters of Indonesia. It is estimated that 40% of the world’s trade passes through Indonesian waters which has undoubtedly made Southeast Asia one of the world’s hottest spots for maritime piracy. The Strait of Malacca, located between Singapore and Indonesia, is the primary spot for most piracy to occur and is heavily patrolled by the Indonesian navy. In 2004, the International Maritime Bureau reported that the region accounted for nearly 40% of all piracy worldwide. And the third is Unequal Distribution of Resources throughout the archipelago has affected the economy in the sense that the geography of the country plays such a key decision in deciding where to locate a firm. With so many islands separated by water and no real large land mass, careful decisions must be made as to where to locate a business. Indonesia is known as an agglomerate economy, in the sense that it consists of a decentralized system of several firms established across the country that hold sway over a certain region of islands. Due to this decentralization heavy emphasis has been put on government regulation/bureaucratic intervention and has had hampering effects on the growth of the economy.

To capitalise on those condition, Indonesian Government needs to move urgently and decisively to remove constraints on growth in key sectors, continue its productivity growth, and aggressively develop its pool of skills, for example Indonesian Government must build up in UKM (Usaha Kecil Menengah) Sector in order to make independent business people. Indonesian Government needed to providing capital to make the UKM sector to be succesful because Indonesia must make a independent business so Indonesia is not in the company's dependence.

http://en.wikipedia.org/wiki/Economy_of_Indonesia

                    http://www.economywatch.com/world_economy/indonesia/

                    http://www.speroforum.com/a/21848/Indonesia---The-Indonesian-economy-battles-to-reduce-unemployment-and-poverty

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