ANALYSIS OF FOREIGN WORKER ENTRY TO CREATE INDONESIAN DOMESTIC WORKER EMPLOYMENT UNDER THE PRESIDENCY OF JOKO WIDODO

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.