Int. J Sup. Chain. Mgt Vol. 9, No. 5, October 2020
1195
The Implementation of Supply Chain Management
Over Foreign Workers in Central Sulawesi,
Indonesia
Asri Lasatu*
1
, Sulbadana
1
, Surahman
1
, Insarullah
1
, Asriyani
1
1
Faculty of Law, Tadulako University, City of Palu, Indonesia, Email: asrilasatu@aol.com
Abstract- Global supply chains have become a common way
of organizing investment, production and trade in the global
economy. In many countries, particularly developing
countries, they have created employment and opportunities
for economic and social development. During the
employment relationship, both the employers and the
foreign workers must comply with the norms of employment
while the local governments must cooperate with the
Immigration Offices to supervise the employment of foreign
workers. The purpose of this research was to find out about
the implementation of supply chain management over
foreign workers. The data was collected through
observation, interviews, and literature review. The study was
conducted in Palu City, Morowali Regency, and North
Morowali Regency. The results showed that the supply chain
management of foreign workers in Central Sulawesi
Province had not been conducted optimally due to the lack
of supervisors. On the other hand, the revocation of supply
chain management by the regional government increasingly
leads to the implementation of ineffective and inefficient
control.
Keywords: Global Workers, Supply chain management,
Regional Government, Foreign Worker
1. Introduction
There is also evidence, however, that the dynamics of
production and employment relations within the global
economy, including in some global supply chains, can
have negative implications for working conditions. The
collapse of the Rana Plaza building in 2013 and factory
fires in Pakistan and Bangladesh in 2012 took the lives of
over 1,500 people and prompted a renewed call for global
action to achieve decent working conditions in global
supply chains [1-3] Also, aconcerning Human Rights
states that every citizen has the right to get job, to choose
profession, and to receive equal pay for the same work
regardless of gender. These rights have been declared as
constitutional rights for every Indonesian citizen, as stated
in the opening of the 1945 Constitution of the Republic of
Indonesia paragraph IV and confirmed in Article 27
paragraph (2), "Every person shall have the right to work
and to receive fair and proper compensation and treatment
in employment." However, it must be understood that
Article 27 Paragraph (2) of the 1945 Constitution of the
Republic of Indonesia is intended for Indonesian citizens,
in which, the government policies in the industrial sector
must synergize with the essence of Article 27 paragraph
(2), by prioritizing Indonesian Workers to fill all
vacancies. In the studies on employment, the problem of
unemployment becomes the main concern for the
policymakers [4]. Reducing the unemployment rate
becomes the main agenda and goal in the field of
employment and is one indicator of the success of a
country's development [5]. In addition to the relatively
high unemployment rate, other problems faced by the
country nowadays and which must get the attention of the
government are the relatively low quality and productivity
of human resources, low skills, and low-quality education,
and inadequate protection of workers, including
Indonesian Workers abroad [6].
Article 27 paragraph (2) is not actually against the
Foreign Workers. Still, the employment of Foreign
Workers must be selective and limited so that the rights of
Indonesian Workers are not eliminated. It has been stated
by Hanif Dhakiri (Minister of Manpower of the Republic
of Indonesia) that Indonesia is open for Foreign Workers
to work in Indonesia. Therefore, Foreign Workers are
regulated, not prohibited. They are allowed to enter under
the provisions. If it is in accordance with the provisions, it
would not be a problem. Therefore, the government
formed a Foreign Worker Task Force to improve the
government supply chain management of Foreign
Workers [7].
The employment of Foreign Workers is a necessity
and a challenge that cannot be avoided because our
country needs them in various sectors. This international
labor movement will affect the situation of skills and
knowledge of workers in Indonesia. The presence of
Foreign Workers in the national economy of a country is
able to create competition that leads to efficiency and
increases economic competitiveness. In terms of
philosophy and the spirit of globalization, the employment
of Foreign Workers in developing countries is intended for
the transfer of knowledge and technology (Nababan,
2014). Two ministries implement the regulations on the
employment of Foreign Workers, namely the Ministry of
Manpower and the Ministry of Law and Human Rights.
The authority of the Ministry of Manpower is to examine
the requirements and give approval to the Plan for the
Employment of Foreign Workers submitted by
prospective employers of Foreign Workers [8] while the
entrance permit into the territory of the Republic of
Indonesia is the authority of the Minister of Law and
Human Rights through the Immigration Office by issuing
Foreign 'Workers' Visas, Limited Residence Visas, and
Limited Residence Permits [9].
Therefore, both institutions must work together in the
employment and supply chain management over the
employment of foreign workers. Synergy is not limited to
the level of implementation in the field, but this synergy
must be built and started from the formation of legal
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International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
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