JAKARTA, Dec. 4 (Xinhua)-- Indonesia set up a particular team for job creation to tackle unemployment and provide incentives for companies to draw personnel from the country's vast labor pool, local media reported Tuesday.
Coordinating Minister for the Economy Hatta Rajasa said he was asked to lead the team after President Susilo Yudhoyono led a limited cabinet meeting on the issue at the State Palace. "The bottom line is for 2013 and 2014. We will continue to create jobs from the many sectors that we have. The key is to maintain our growth momentum," Hatta said Monday. "We are in talks so that companies that employ many workers can be given a fiscal incentive."
According to him, the government has given tax breaks for businesses that can create significant number of jobs.
Hatta said there were 500,000 new jobs created each year, but the president has expressed hopes that the new team can create up to twice as many.
The government is also aiming to reduce the unemployment rate to 5 percent in 2014. The jobless rate currently stands at 6.32 percent, or around 7.24 million people, according to data from the Central Statistics Agency (BPS).
The total labor force in Indonesia, which has a population of 240 million, is 118 million, the Jakarta Globe reported.
The move came just weeks after the Jakarta administration agreed to increase the 2013 minimum wage by 44 percent, setting off a wave of hefty increases in Indonesia and prompting captains of industry to warn of a substantial risk of job losses.