Embracing Disability in the Employment Agenda of G20 Countries
By: Muhammad Hanri, Ph.D., Head of the Social Protection and Employment Study Team at LPEM FEB UI
KONTAN – (28/9/2021) Meetings of representatives of nations in multilateral forums is a commonplace event and happen every year. The meetings can be packaged in the form of policy discussions such as the United Nations (UN) high-level conference (Summit) to sports competitions such as the recent Tokyo 2020 Olympics. In 2022, the meeting forums may become more widespread as the COVID-19 pandemic becomes more under control. Indonesia itself will receive the G20 Presidency relay baton from Italy.
The transition will coincide with the 2021 G20 Summit in Rome, Italy, on 30-31 October. This is a crucial momentum because it marks Indonesia’s official hosting the G20 series of meetings.
Indonesia’s G20 presidency includes preparations for holding a series of meetings, consisting of summits, Ministerial and Central Bank Governor level meetings, Sherpa level meetings, side events, and others. Of the approximately 150 meetings planned to take place during 2022 within the framework of the G20, the government hopes to absorb around 33,000 workers in various sectors as well as increase domestic consumption to Rp1.7 trillion (US$119.2 million), which will contribute to an additional Rp7.47 trillion to the national GDP.
The Government’s hope is certainly not without reason. In the short term, the implementation of international forums in Indonesia has previously been proven to increase labor absorption. For example, the meeting of the International Monetary Fund and World Bank (IMF, WB) in Bali in 2018 has contributed to an increase in labor absorption in Bali by around 1.5% during the event.
Meanwhile, a study by LPEM FEB UI also found that there was an increasing need for labor in the MSME sector in the 2018 Asian Games competition area, which took place in Jakarta and Palembang. However, it is possible that the economic and employment impacts will be lessened if COVID-19 conditions do not improve.
It is very likely that the implementation of the G20 series of activities will be carried out in a very limited manner, such as at the 2020 Tokyo Olympics, and maybe even going virtual.
Measuring Long-Term Impact
Of course, all parties hope that Indonesia’s presidency in the G20 forum will not only bring economic benefits in the short term, but also in the long term. The G20 Forum is expected to always be a place to promote the host’s agenda, including in the field of employment.
As the host, the Indonesian government carries an agenda entitled “Improving the Employment Condition to Recover Together”. Through this agenda, the Indonesian government will propose four main efforts in this area: (i) sustainable field creation in the face of changing world of work, (ii) inclusive labor market and work quotas for persons with disabilities, (ill) human capacity development for productivity sustainable development growth, and (iv) adaptive labor protection against changes in the world of work.
Using data from the 2020 National Labor Force Survey (Sakernas), the LPEM study found that workers with disabilities had lower levels of education and training participation than other groups of workers. This results in a lower average income for this group as well.
Income issues among workers with disabilities have been exacerbated by COVID-19. During the pandemic, this group experienced a higher decline in income. One of the factors that make this possible is the work participation of workers with disabilities, the majority of whom are in the informal sector.
Only about 30% of workers with disabilities work in the formal sector. Therefore, the G20 Presidency is expected to be a good momentum and generate a commitment to bilateral cooperation with member countries to increase welfare capital for groups of people with disabilities, of course, along with other focuses on employment.
Source: Kontan Newspaper. Issue: Tuesday, September 28, 2021.
(am)