Morin Factory visit Report

Topic: Employment and Economic Growth
 

Unemployment refers to someone who do not have any work and income, unemployment is a major problem around the world and it is one of government’s aim to achieve a high and stable unemployment. Without employment, people are not able to earn money which will lead to poverty. People are unable to complete their basic need and having an access to good sanitation which will then lead to another problem such as deadly diseases as their body are not well defended from the virus because they are living in an unsuitable environment. With the present of unemployment, it disturbs the economic growth and development as they are having less GDP per capita (People don’t have work), bad living standard. Goods and services produced is also less because productivity is low due to low people are working, leading business to bankruptcy. People are not able to spend because they don’t have any money and this will not provide enough sales for firms are they are forced to downsize their company or dismissing it which make unemployment further increases. As the development of technology progress real fast, labor are being replaced by machine which then increases further unemployment.

Morin Factory (PT. Asta Guna) protects employment as they are not replacing all the production process with machinery. They care about the people so they balance they balances the use of labor and machines. This also benefits them because the quality produced by humans are better than machines. Machines can’t fully replace the job done by human. Morin is really strict will their product quality so they still employing human labor in their production process to provide better quality to their customers.

They help the government reduce the level of unemployment, by providing them jobs with a good working condition with a reasonable working hours too. This reduces the number of people living in the poverty line as most of their work in the factory doesn’t really need a high level education, except the quality control team where they need a high education on chemistry. This benefits them as they are not well educated because of not having enough money to fund their education. Trainings are also provided to the workers so they are able to gain knowledge about the job they are working which benefits both the worker and the company. The worker are able to work more productively which makes the company be able to produce more.

Morin also promote economic growth for Indonesia as they are exporting jams abroad. This increases the output of Indonesia and contribute to Indonesia’s economic growth. People abroad now begins to use Indonesia’s homemade jam which increases the foreign investment interest to Indonesia which can help Indonesia to expand even further. This also reduce the dependency of Indonesia’s market as Indonesia now are able to make its own jam and will not be affected badly if abroad jam producer are having supply problem or even possibly Indonesia could be the one who will overcome the supply scarcity by exporting to them.

On the other hand, the decision of still mainly using labor is that they are not be able to produce more than they could with machines. Worker can only work in a limited amount of time where during their breaks, the company are unable to continue the production unless they hire more employees which will then increases cost of production of the company reducing its profit whereas they can produce more with less cost when investing on machinery. As technology develops, there are able to produce even more than humans be able to produce. They also don’t have consistent production as humans productivity varies overtime so they are not be able to produce the same amount of goods every time.

Worker could also stop working if the company are not able to fulfill what they want, such as insufficient payment and this stops the production process and force the company to increase their wages which again add their production cost. The company needs to keep satisfying their employees so they are more productive, but when the company replace them with machinery, they don’t need to worry as machines will do whatever they are instructed to do so. But this added maintenance cost to the company and the requirement of hiring a specialize engineers to operate the machinery.

Morin are able to use only machinery and cut cost but they must sacrifice their product quality and increases unemployment. Instead they use both labor and machinery as there are really strict with their quality product and they care about their employees which is a good decision. At least they are still gaining profit and contribute economic growth for Indonesia. Ferdin