T

he government plans to spend Rp 1.4 trillion (US$162.5 million) to create more jobs at home, anticipating a rise in unemployment after a moratorium on sending migrant workers to Saudi Arabia goes into effect.

Coordinating Minister for the Economy Hatta Rajasa said Monday the government would take the money from Rp 15.1 trillion in budget savings for the National Program for People Empowerment (PNPM), which will target 1.96 million people.

“We agree that over Rp 15 trillion of budget savings will be focused on infrastructure development and for programs that will create more jobs,” Hatta said after a meeting to discuss job creation after the moratorium.

National Development Planning Minister Armida Alisjahbana said the Rp 1.4 trillion in funds would be used for training and educational programs targeting women in 38 cities and regencies that may suffer the most from the moratorium, including those in West Java, East Java and West Nusa Tenggara.

Manpower and Transmigration Minister Muhaimin Iskandar said he expected the new plan to resolve unemployment fears caused by the moratorium, as 15,000 to 20,000 workers are sent every month to Saudi Arabia.

“The PNPM funds will be used to train and educate women to be productive and increase their skills in the fields of agriculture, animal husbandry, crafts and entrepreneurship,” he said, adding that he hoped the women would find jobs readily afterward.

The move came following a nationwide outcry after the beheading of Indonesian maid Ruyati bin Satubi by Saudi authorities after she was found guilty of murdering what she called her abusive Saudi employer.

The Indonesian government announced last week it would halt the sending of migrant workers, mostly maids, to Saudi Arabia starting on Aug. 1 until an agreement was reached between the two countries regarding a better recruitment system and protection for Indonesian migrant workers in the Middle Eastern nation.

Many unskilled Indonesian workers choose to work abroad as they cannot find work at home, though language barriers often incite abuse from their employers.

The government’s newly announced plan is expected to be realized within the month and Finance Minister Agus Martowardojo is scheduled to seek approval from the House of Representatives in the next couple of days.

“With regards to the moratorium, there needs to be quick winning solutions in the short-term. This is just a proposal that will need to be approved by the House. This plan scales up existing programs of ministries and government bodies that run PNPM activities,” Armida said.

The remaining budget savings for infrastructure spending is also expected to help create more jobs in Southeast Asia’s largest economy, where every 1 percent of economic growth creates 600,000 new jobs, Central Statistics Agency data shows. Indonesia is poised for 6.4 percent growth this year.

The Monday meeting was also attended by, among others, the National Agency for the Placement and Protection of Indonesian Migrant Workers (BNP2TKI), the National Education Minister, the Finance Minister, the Trade Minister and the State-Owned Enterprises Minister.