Digitalised Welfare-to-work program in Indonesia: A Prelimenary Study of The Pre-Employment Card (PECP) and Job-Loss Insurances (JLI) Programs
DOI:
https://doi.org/10.18196/jsp.v15i1.352Keywords:
Welfare-to-Work (WTW), Pre-Employment Card Program (PECP), Job-Loss Insurance (JLI), Unemployment, DigitalizationAbstract
Unemployment is a serious challenge facing many countries around the world, including Indonesia. The government plays a crucial role in addressing this issue by implementing effective welfare-to-work (WTW) policies. This study examines the implementation of Welfare-to-Work (WTW) reform in Indonesia through an examination of the Pre-Employment Card Program (PECP) and Job-Loss Insurance (JLI) on unemployment figures. This study examines the use of digitalization in the implementation of the two programs. The study was conducted using qualitative methods with semi-structured interviews with a total of 37 participants (14 policymakers from the Ministry of Manpower and the Coordinating Ministry for Economic Affairs, 17 training providers related to the PECP and 6 participants). Secondary data was collected from previous studies with a total of 846 respondents. This study finds that digitalization can weaken jobseekers' motivation to access the full implementation of the WTW policy. The provision of helpdesks is beneficial for individuals who face difficulties in accessing digital services, especially those living in urban areas. However, digitization may not effectively support those who are geographically marginalized.
References
Auer, P., Efendioğlu, Ü., & Leschke, J. (2008). Active labour market policies around the world: Coping with the consequences of globalization. International Labour Organization.
Bills, D. B., Di Stasio, V., & Gërxhani, K. (2017). The demand side of hiring: Employers in the labor market. Annual Review of Sociology, 43(1), 291–310. https://doi.org/10.1146/annurev-soc-081715-074255
Bonoli, G. (2010). The political economy of active labor-market policy. Politics & Society, 38(4), 435–457. https://doi.org/10.1177/0032329210381235
BPS. (2023, May 5). Februari 2023: Tingkat pengangguran terbuka (TPT) sebesar 5,45 persen dan Rata-rata upah buruh sebesar 2,94 juta rupiah per bulan [The open unemployment rate (TPT) is 5.45 percent and the average labor wage is 2.94 million rupiah per month]. BPS. Retrieved September 17, 2023, from https://www.bps.go.id/id/pressrelease/2023/05/05/2001/februari-2023-tingkat-pengangguran-terbuka--tpt--sebesar-5-45-persen-dan-rata-rata-upah-buruh-sebesar-2-94-juta-rupiah-per-bulan.html
Busch, P. A., & Henriksen, H. Z. (2018). Digital discretion: A systematic literature review of ICT and street-level discretion. Information Polity, 23(1), 3–28. https://doi.org/10.3233/IP-170050
Casey, S. J. (2022). Towards digital dole parole: A review of digital self-service initiatives in Australian employment services. Australian Journal of Social Issues, 57(1), 111–124. https://doi.org/10.1002/ajs4.156
Chen, Y.-C. (2017). Managing digital governance: Issues, challenges, and solutions. Routledge.
Coles-Kemp, L., Ashenden, D., Morris, A., & Yuille, J. (2020). Digital welfare: Designing for more nuanced forms of access. Policy Design and Practice, 3(2), 177–188. https://doi.org/10.1080/25741292.2020.1760414
Considine, M., Lewis, J. M., O’Sullivan, S., & Sol, E. (2015). Getting welfare to work: Street-level governance in Australia, the UK, and the Netherlands. Oxford University Press.
Daniels, R. J., & Trebilcock, M. J. (2005). Rethinking the welfare state: The prospects for government by voucher. Routledge.
Davide, F., Gaggioli, A., & Misuraca, G. (2021). Perspectives for digital social innovation to reshape the european welfare systems (Vol. 13). IOS Press.
Dean, H. (2003). Re-conceptualising welfare-to-work for people with multiple problems and needs. Journal of Social Policy, 32(3), 441–459. https://doi.org/10.1017/S0047279403007062
Eriksson, S. (2019). Digital applications in youth employment services. South-Eastern Finland University of Applied Sciences.
Erkut, B. (2020). From digital government to digital governance: Are we there yet? Sustainability, 12(3), 3. https://doi.org/10.3390/su12030860
Fowkes, L. (2011). Rethinking Australia’s employment services. Whitlam Institute within the University of Western Sydney.
Frøyland, K., Andreassen, T. A., & Innvær, S. (2019). Contrasting supply-side, demand-side and combined approaches to labour market integration. Journal of Social Policy, 48(2), 311–328. https://doi.org/10.1017/S0047279418000491
Ginting, M. L. B., & Herdiyana, R. (2020). Peran pemerintah pada kebijakan kartu prakerja dalam memulihkan kesejahteraan pekerja di masa pandemi Covid-19 [The government's role in the pre-employment card policy in restoring workers' welfare during the Covid-19 pandemic]. Jurnal Analis Kebijakan, 4(2), 2. https://doi.org/10.37145/jak.v4i2.431
Joseph, A., & Gupta, S. (2021). Case studies as a research methodology. In L. T. Wright, L. Moutinho, M. Stone, & R. P. Bagozzi (Eds.), The Routledge Companion to Marketing Research (pp. 107–118). Routledge.
Karakhan, A. A., Nnaji, C. A., Gambatese, J. A., & Simmons, D. R. (2023). Best practice strategies for workforce development and sustainability in construction. Practice Periodical on Structural Design and Construction, 28(1), 04022058. https://doi.org/10.1061/(ASCE)SC.1943-5576.0000746
Kertonegoro, S. (1998). Sistem penyelenggaraan dan badan penyelenggara jaminan sosial tenaga kerja–isu privatisasi jaminan sosial [The system of administering and administering social security for workers – the issue of privatization of social security]. Yayasan Tenaga Kerja Indonesia.
Larasati, Z. W., Yuda, T. K., & Syafa’at, A. R. (2022). Digital welfare state and problem arising: An exploration and future research agenda. International Journal of Sociology and Social Policy, 43(5/6), 537–549. https://doi.org/10.1108/IJSSP-05-2022-0122
Lubis, A. M. (2022, June 29). Pakar menjawab: Benarkah kartu prakerja berhasil menambah skill dan membuka akses ke lapangan kerja? [Expert answers: Is it true that pre-employment cards have succeeded in increasing skills and opening up access to employment opportunities?] The Conversation. Retrieved September 17, 2023, from https://theconversation.com/pakar-menjawab-benarkah-kartu-prakerja-berhasil-menambah-skill-dan-membuka-akses-ke-lapangan-kerja-185958
Mahy, P. (2021). Indonesia’s Omnibus law on job creation: reducing labour protections in a time of COVID-19. Labour, Equality and Human Rights (LEAH) Research Group, Working Paper, 23, 1–24.
Manning, C. (2021). The labour market shock and policy responses to the coronavirus pandemic. Economic Dimensions of COVID-19 in Indonesia: Responding to the Crisis, 94–113.
Marston, G. (2006). Employment services in an age of e-government. Information, Communication & Society, 9(1), 83–103. https://doi.org/10.1080/13691180500519555
Mehr, H. (2017). Artificial intelligence for citizen services and government. ASH Center for Democratic Governance and Innovation, Harvard Kennedy School.
Mitchell, W., & Muysken, J. (2008). Full employment abandoned: Shifting sands and policy failures. Edward Elgar Publishing.
Nguyen, P., Considine, M., & O’Sullivan, S. (2016). Welfare-to-work: Experience in the emerging Vietnamese welfare state. Asia Pacific Journal of Public Administration, 38(4), 270–280. https://doi.org/10.1080/23276665.2016.1253957
Nguyen, P., Putra, F., Considine, M., & Sanusi, A. (2023). Activation through welfare conditionality and marketisation in active labour market policies: Evidence from Indonesia. Australian Journal of Public Administration, 82(4), 488–506. https://doi.org/10.1111/1467-8500.12602
Nielsen, M. H., Danneris, S., & Andersen, N. A. (2020). The silent expansion of welfare to work policies: How policies are enhanced through the use of categorizations, evidence-based knowledge and self-governance. In A. Eleveld, T. Kampen, & J. Arts (Eds.), Welfare to Work in Contemporary European Welfare States (pp. 163–188). Policy Press. https://doi.org/10.51952/9781447340133.ch008
Niño-Zarazúa, M., & Torm, N. (2022). Active labour market policies in Asia and the Pacific. A review of the literature. United Nations ESCAP, Social Development Division, Working Paper Series.
OECD. (2009). Key findings: Indonesia in Asia/Pacific edition fac sheet. OECD/Korea Policy Center.
OECD. (2021). Employment outlook 2021: Navigating the Covid-19 crisis and recovery. OECD Editions. Retrieved September 17, 2023, from https://www.voced.edu.au/content/ngv:92774
Parinding, K. A., Anwar, C., Paembonan, L., & Sir, S. Y. (2023). The impact of Covid-19 pandemic on working time allocation and income: A study of elderly population in Indonesia. International Journal of Professional Business Review, 8(7), e01984–e01984. https://doi.org/10.26668/businessreview/2023.v8i7.1984
Phan-Thuy, N., Hansen, E., & Price, D. (2001). The public employment service in a changing labour market. International Labour Organisation.
Pignatti, C., & Van Belle, E. (2018). Better together: Active and passive labour market policies in developed and developing economies (Research Department Working Paper No. 37). International Labour Office.
Pignatti, C., & Van Belle, E. (2021). Better together: Active and passive labor market policies in developed and developing economies. IZA Journal of Development and Migration, 12(1), 742–755.
Pool, L. D., & Sewell, P. (2007). The key to employability: Developing a practical model of graduate employability. Education + Training, 49(4), 277–289. https://doi.org/10.1108/00400910710754435
Respati, A. R. (2022, April 29). Tiga bulan berjalan, penerima manfaat JKP sudah 1.076 peserta [Three months on, there are 1,076 JKP beneficiaries]. Kompas. Retrieved September 17, 2023, from https://money.kompas.com/read/2022/04/29/090000626/tiga-bulan-berjalan-penerima-manfaat-jkp-sudah-1.076-peserta-?page=all#google_vignette
Scott, K. M., Wang, S. M., Miceli, M., Delobelle, P., Sztandar-Sztanderska, K., & Berendt, B. (2022). Algorithmic tools in public employment services: Towards a jobseeker-centric perspective. Proceedings of the 2022 ACM Conference on Fairness, Accountability, and Transparency, 2138–2148. https://doi.org/10.1145/3531146.3534631
Stambe, R., & Marston, G. (2023). Checking activation at the door: Rethinking the welfare-work nexus in light of Australia’s Covid-19 response. Social Policy and Society, 22(1), 106–121. https://doi.org/10.1017/S1474746421000944
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.620766
Wihardja, M. M., & Cunningham, W. (2021). Pathways to middle-class jobs in Indonesia. The World Bank.
Wiryadi, K. J., & Novendra, B. (2021). Jaminan kehilangan pekerjaan dampak pandemi covid-19: pengaturan, manfaat, dan perbandingannya dengan negara lain [Job loss insurance impact of Covid-19 pandemic: Regulations, benefits, and comparisons with other countries]. Negara Hukum: Membangun Hukum untuk Keadilan dan Kesejahteraan, 12(1), 1. https://doi.org/10.22212/jnh.v12i1.2112
Wisnubroto, K. (2022, August 28). Menekan inflasi dengan cara istimewa [Suppress inflation in a special way]. Indonesia.go.id. Retrieved September 17, 2023, from https://indonesia.go.id/kategori/indonesia-dalam-angka/5570/menekan-inflasi-dengan-cara-istimewa
Yamali, F. R., & Putri, R. N. (2020). Dampak Covid-19 terhadap ekonomi Indonesia [The impact of Covid-19 on the Indonesian economy]. Ekonomis: Journal of Economics and Business, 4(2), 2. https://doi.org/10.33087/ekonomis.v4i2.179
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Fadillah Putra, Anwar Sanusi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Jurnal Studi Pemerintahan is licensed under a Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) license.
