Thursday, July 23, 2020

ICC continues to delve deeply into the operation of the pre-employment card program and has held discussions with various related parties, specifically the Implementing Management of the Pre-Employment Card Program and several digital platforms such as Bukalapak and Tokopedia. Further meetings will also be held with other digital platforms. ICC has also gone over the regulations that become the reference for the implementation of the program, namely Presidential Regulation Number 36 Year 2020 Regarding Work Competence Development Through Pre-Employment Card Program, along with the implementing regulations thereof, Regulation of the Coordinating Minister for the Economy  of the Republic of Indonesia Number 3 Year 2020.

In its research, ICC takes down that the processes occurring in the selection of the parties engaged in the pre-employment card program uses a curation approach or assessment of the incoming proposals, and indeed does not constitute goods and services procurement activities. Nevertheless, ICC considers that the problems in the program are not only a matter of selection, but also on how the existing system is capable of materializing fair competition for program actors. Moreover, the implementation of the program is associated with the granting of financial incentives to the Pre-employment Card participants. This can reduce the desire of digital platforms and training institutions to compete and provide quality training.

ICC is of the view that fair competition in the program can be materialized through various regulating as follows.

  1. Setting of criteria and regulating of requirements including the selection process for training institutions, digital platform partners, and payment system partners must be transparent, non-discriminatory in nature, and minimum barriers to market entry.
  2. Regulating relating to the form of relationship and cooperation between digital platforms and training institutions, especially in preventing discrimination practices, tying/bundling of training products with unrelated products, use of data of Pre-employment Card Participants by digital platforms for activities outside the program, and ownership of digital platforms of training institutions serving as their partners, especially the potential for discrimination by digital platforms for independent training institutions (if digital platforms also provide their own training services).
  3. Regulating for anticipating potential violations of digital platform partnerships against training institutions serving as their partners. ICC has the authority in accordance with Law No. 20 Year 2008 regarding Micro, Small, and Medium Enterprises to oversee business partnerships. Such potential includes, among other things, the existence of fake partnerships, namely training institutions that appear to be separate business actors, but in fact constitute business actors owned or controlled by the digital platform companies.
  4. Regulating of the type, quality standard, or method of delivery of training (both online/offline), as well as the flexibility of the Pre-employment Card program participants in choosing the type of training and digital platform they wish. The online system currently in use has yet to provide alternatives for users, whereas actually, there are still various models of online training other than those currently being provided. The current online model is dominated by the providing of tutorial contents. There are still many training institutions providing training services in addition to the tutorial content model.
  5. Regulating so that training institutions must given freedom to be able to cooperate with more than one digital (multihoming) platform. This is aimed at facilitating the access of Pre-employment Card participants to the quality training.

ICC is at present in the process of determining if the Pre-employment Card issue will be handled through law enforcement proceedings. In a near future, ICC will submit official recommendations to the Government in order to further explain various efforts to create fair business competition in the implementation of the program.