Training
No government-imposed training levy applies across all sectors in Indonesia, although in some sectors such as banking, the Central Bank of Indonesia has required that 5% of salaries be spent on training. In respect to companies, the estimate of training expenditure is about 1% of payroll, which is about the amount spent in most newly industrialized countries. At the government level, Presidential Decrees in late 1994 stipulated that staff would have to be trained before they could be promoted; the intention being to eliminate automatic promotion every 4 years. Also, the Ministry of Home Affairs makes participation in training and education compulsory and requires every unit within the Ministry to allocate 15–30 days per annum per employee for education and training. Although the amount is believed to be much greater than in the private sector, quantifying it seems to be almost impossible. However, there is also criticism from some quarters that, in the civil service, training has failed to achieve its goal to contribute to greater efficiency. Instead, it is used primarily for the salary supplements and promotions it attracts and for the private benefits it generates through moonlighting Further, it has been found that the more educated receive more formal training than the less educated. Since the economic meltdown though, there are reports that organizations are refusing to spend money on training just as they are failing to provide salary increments.