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ICC Inquire the Executive Management of Pre-Employment Card Program Pertaining To the Program Operator Appointment Process

04 May 2020
News Indonesia

The Pre-employment Card Program constitutes a work competence development program aimed at job seekers, workers/laborers affected by layoffs and/or workers/laborers in need of competence upgrading. The program has been provided for by virtue of Presidential Regulation Number 36 Year 2020 regarding the Development of Work Competence through Pre-employment Card Program, along with the implementing regulation thereof, Regulation of the Coordinating Minister for the Economy of the Republic of Indonesia Number 3 Year 2020. 

ICC Spokesperson, Guntur S. Saragih, explained that the Indonesia Competition Commission (ICC) through its Directorate of Advocacy will inquire the Executive Management, as the implementing unit of the Pre-employment Card Program, on the appointment process of the program operator. This is to implement the preventive function of ICC through the issuance of policy recommendations. The ICC’s analysis will focus on 5 (five) main issues of the program: 

1. Process for determining the program operator

The pro tem results of the 8 (eight) elected program operator digital platforms will be assessed against fair business competition processes in accordance with the norm of Law No. 5 Year 1999. This is important to know in guaranteeing the existence of fair business competition for every businesses wishing to compete and contribute to the program.

2. Access to entering the market

The enormity of the potential market value of this program is IDR 5.6 trillion. Hence, the execution of the program raises a question about the mechanism and requirement for businesses to enter the market.

3. Access to entering the market for digital platform partners

Currently, there are many institutions capable of conducting business activities in the form of online and offline training. Consequently, the assessment (or curation) process that must be conducted toward training institutions to be eligible as partners of the Pre-employment Card Program through registration with digital platforms must be conducted in ways that promote fair business competition. Therefore, it is necessary to know if the applicable mechanism still promotes transparency, professionalism, and quality of training, to open wider range of potential partners of the Pre-employment Card Program in participating in the selection process.

4. Protection of businesses acting as partners of digital platforms in terms of partnership

In accordance with the mandate of Law No. 20 Year 2008 regarding Micro, Small, and Medium Enterprises (MSMEs), the duty of ICC is to supervise partnership between large businesses and non-large businesses. Therefore, it is necessary for the Executive Management of the pre-employment card program to regulate the partnership between digital platforms (large businesses) and training institutions (small or medium businesses) in order to prevent exploitation or abuse of bargaining position by large companies.

5. Business actors concurrently serving as both digital platform and Training Institution

The role of a dominant digital platform can potentially provide a favorable policy for a training institution that it owns or is affiliated therewith. Therefore, it is important to have a mechanism that can prevent discriminatory treatment by digital platforms towards training institutions.

In order to achieve the desired objectives of the pre-employment card program, the ICC encourages Government policies to adopt the principles of fair business competition. The ICC believes that public welfare can be realized through fair competition, even during this emergency situation of Covid-19 pandemic.