Abstract:
The thesis analyzes how foreign worker entry (through the Presidential
Regulation No. 20/ 2018) related to the domestic worker employment through
the attraction of foreign direct investment. This analysis is encouraged by the
debate between the advocates of foreign worker entry to create employment
opportunities for Indonesian domestic worker and the critics who see it as the
regulation that creates absolute competition and eventually endangers local
workers. Its significance is to show the potential of foreign worker entry to
create domestic worker employment, which should be maximized. This thesis
focuses on analyzing qualitatively the association under the administration of
President Jokowi after the issuance of the presidential regulation. This analysis
uses a descriptive and qualitative analysis approach to describe the phenomena.
The result of the analysis is, positive association between foreign worker entry
through foreign direct investment as the motivating factor to create domestic
worker employment in terms of number and training program. However, there
are intervening variables that cause the stagnation of foreign direct investment
growth. Those intervening variables are the delay of infrastructure projects due
to global political uncertainties, upcoming General Election that affects
political stability, and also relatively high cost of labor but it is not
accompanied by high quality of workers. In conclusion, foreign worker entry
through Presidential Regulation No. 20/ 2018 is analyzed to have no significant
impact towards the Indonesian domestic workers.
