RECORD OF DISCUSSION OF THE 3RD MEETING OF THE INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE WORKING GROUP ON HUMAN RESOURCES DEVELOPMENT (IMT-GT

WGHRD) 22-23 September 2011, Jakarta, Indonesia INTRODUCTION 1. The 3rd Meeting of the Indonesia-Malaysia-Thailand Growth Triangle Working Group on Human Resources Development (IMT-GT WGHRD) was convened in Jakarta on 22 23 September 2011. The Indonesian delegation was led by Mr. Abdul Wahab Bangkona, the Director General of Training and Productivity Development of the Ministry of Manpower and Transmigration (MoMT) of the Republic of Indonesia. The Malaysian delegation was led by Mr. Syahrunizam bin Shahwan, Principal Assistant Secretary, Human Resources Policy Division the Ministry of Human Resources (MoHR) of Malaysia. The Thai delegation was led by Ms. Suchada Thaibunthao, Deputy Director-General of Thailand International Development Cooperation Agency (TICA), Ministry of Foreign Affairs of Thailand. The meeting was also attended by the representatives from Joint Business Council (JBC) of Indonesia and Malaysia and Asian Development Bank (ADB). The full list of delegations is attached as Annex 1. OPENING SESSION 2. The opening remarks of the 3rd Meeting of IMT-GT WGHRD were delivered by H.E. Mr. Muhaimin Iskandar, the Minister of Manpower and Transmigration of the Republic of Indonesia, and Mr. Abdul Wahab Bangkona, Director General of Training and Productivity of the MoMT. 3. The Minister welcomed and expressed his deepest gratitude and appreciation to all delegates. The Minister expected that the meeting will garner stronger commitment and willingness from each member country to develop its human resources capacity through IMT-GT platform. The Minister wished the meeting will be having more concrete cooperation for the benefit of its member countries. He also expected that IMT-GT will contribute in developing its human resources competitiveness towards ASEAN Economic Community in 2015 (AEC). The Ministers full remark is attached as Annex 2 4. Mr. Bangkona noted that this meeting was held to follow up on 17th Senior Official Meeting (SOM) in Krabi, Thailand, in 2010 to hold the 3rd Meeting of IMT-GT WGHRD in Palembang, South Sumatera, Indonesia. He conveyed his apology for not holding the meeting in Palembang due to air traffic problems that was caused by haze problems and SEA Games preparation in Palembang. He acknowledged the aim of this meeting was to discuss and to develop human resources under IMT-GT framework by supporting the business sector, while, the government acted as the regulator and facilitator. He realized that the IMT-GT WGHRD progress had been slow. Nonetheless, Mr. Bangkona reaffirmed that IMT-GT WGHRD is still the best forum for sharing experiences and best practices to support economic development in the sub-region. He said that one of its achievements was by initiating the idea of 1

enhancing transportation connectivity as clearly evident by the operating of direct flight from Malaysia to Sumatera, Indonesia. HAND OVER OF THE CHAIRMANSHIP 5. Following the remark, Thailand as the host of the 2nd IMT-GT WGHRD Meeting handed over Chairmanship to Head of Indonesian Delegation as the host of the 3rd IMT-GT WGHRD Meeting. REMARKS BY HEADS OF DELEGATION 6. Mr. Abdul Wahab Bangkona, Indonesian Head of Delegation expected the meeting would be more productive by involving local governments and private sectors representatives. He proposed training centre for IMT-GT member countries in Sumatera. It could serve as a centre for workers final preparation before being sent to other member countries. The centre also could be expected to provide experts to develop and enhance HR capacities. 7. Mr. Syahrunizam Shahwan, the Head of Malaysian Delegation, expressed his appreciation for the host countrys hospitality in welcoming Malaysian delegates and for the excellent of Indonesias Chairmanship on IMT-GT WGHRD. Malaysia believed that IMT-GT WGHRD will enhance the mobility, quality, and competitiveness of labour in the region. Malaysia also affirmed the importance of reprioritizing and re-summarizing of the Road Map to enhance its implementation. Malaysia also pointed out the need to look into the obstacles and hurdles faced in the implementation of the projects under WGHRD for the success of the projects in the future. 8. Ms. Suchada Thaibunthao, the Head of Thai Delegation, expressed her gratitude and appreciation to the Government of the Republic of Indonesia in hosting the 3rd IMT-GT WGHRD and extending the very warm welcome and hospitality to Thailand delegation. She recognized that IMT-GT was initiated to accelerate private sector-led economic growth. She also re-affirmed that Thailand stands ready to share the best-practices on the basis of partnership to build-up capacity and human resource development at all level in order to promote ASEAN Connectivity on people competitiveness and labour mobilization in both national and international markets for goods and services. 9. The full opening remarks of the three Heads of Delegation are attached as Annex 3, 4 and 5 respectively. APPOINTMENT OF THE DRAFTING COMMITTEE AGENDA ITEM 1 : ADOPTION OF THE AGENDA 10. The Meeting adopted the agenda of the 3rd Meeting of IMT-GT WGHRD. The Agenda is attached as Annex 6 AGENDA ITEM 2 : APPOINTMENT OF THE DRAFTING COMMITTE 11. The Meeting appointed 5 members of the Drafting Committee as follows: Mr. Yudhono Irawan and Mr. Ismail Fahmi (Indonesia); Mr. Zulkifli Abd. Latif (Malaysia), and 2

Ms. Chidchanok Malayawong and Mr. Grisada Phakakarn (Thailand). AGENDA ITEM 3 : BUSINESS ARRANGEMENT 12. The Meeting was held in plenary. AGENDA ITEM 4 : REPORT ON STATUS AND PROGRESS OF WORKING GROUP ACTIVITIES BY INDONESIA 13. Mr. Abdul Wahab Bangkona, as the Head of Indonesian Delegation, updated the status and progress of the working group since the 2nd IMT-GT WGHRD Meeting in September 2008 in Phuket, Thailand. He pointed out that only few HRD projects under the Road Map have been implemented. Therefore, he encouraged the member countries to initiate concrete activities to make this working group effectively and efficiently. The Report of Status and Progress of Working Group Activities is attached as Annex 7. 14. Thailand proposed that the coordinating mechanism among member countries should be clearly defined in order to accelerate the implementation of the activities of the WG. The meeting agreed as proposed by Malaysia that the communication should also be channelled through Centre for IMT-GT SubRegional Cooperation (CIMT) to the Ministry of Manpower and Transmigration of the Republic of Indonesia; the Department of Human Resources of Malaysia; and Thailand International Development Cooperation Agency (TICA), Ministry of Foreign Affairs of Thailand. 15. Malaysia proposed to all member countries to review the Action Plan matrix and re-prioritize the activities accordingly for which are deemed as deliverable. 16. The Meeting agreed on the proposed responses from Malaysia and Thailand and reaffirmed the need of reviewing a more realistic project in the Action Plan matrix to accelerate future programs which will be discussed further under the new project proposal.

AGENDA ITEM 5 : PRESENTATION OF DEVELOPMENT POLICY ON HRD 17. The Meeting acknowledged the development policy on HRD of each member country. Indonesias, Malaysias and Thailands presentations are attached as Annex 8, 9 and 10 respectively. 18. Indonesia proposed a concrete mechanism to develop common standard of competency by exchanging information and related documents to be compared and discussed among member countries. The Meeting agreed to set up a Task Force to discuss further on standard and accreditation system proposed by Thailand. Indonesia will communicate with the participating countries and will organize the first meeting of the Task Force. 19. Malaysia proposed the establishment of a common accreditation body and suggested a review to be done on the International Maritime Organization (IMO) and International Civil Aviation Organization (ICAO) standard, and use the concept and framework as a model. 3

20. JBC concurrent and supported from member countries and proposed Indonesia as lead country to play dominant role and affirm the process of harmonization, standardization, and accreditation of the skill competency standard of the three countries, not only by visiting related institutions in each member countries but also by outlining and overseeing each step and progress. JBC expected Indonesia has the ability to make firm resolutions and impose it effectively. AGENDA ITEM 6 : IMPLEMENTATION BLUEPRINT 2012-2016 (CONCEPT, CRITERIA, TASKS) 21. ADB presented the concept of the Implementation Blueprint (IB) 2012-2016, and the guiding principles and selection criteria for priority projects to transition from the Action Plan Matrix into the IB and the initial two-year rolling pipeline (i.e. 2012-2013). Selection of projects for the IB must take into account the impact that these projects have on the sector strategies. 22. The WGHRD has to identify and prioritize the projects for the IB and the initial two-year rolling pipeline (2012-2013), for which they can further develop project profiles for submission to CIMT by mid-October. The WG was also informed that national IB consultations led by the National Secretariat (NS) of each country will be held in mid-November 2011 and the regional IB workshop on 24 November 2011. The draft IB is expected to be endorsed by SOM and Ministers at the 18th SOM/MM in December 2011 in Medan, Indonesia, and eventually endorsed by the IMT leaders at the 6th IMTGT Summit on April/May 2012. A copy of the presentation is attached as Annex 11. 23. The Meeting took note of ADBs comprehensive presentation on the IB, and agreed that there is a need to revise and review the current Action Plan matrix of the HRD sector, in order to re-prioritize projects for inclusion in the IB. AGENDA ITEM 7 : PRESENTATION OF THE NEW PROJECTS PROPOSALS 24. Indonesia presented the three proposals as follows: (i) Training in the areas of Tourism, Welding, Construction, and Industrial Electronic projects; (ii) Internship/Apprenticeship on Proposed Trade ( Health and Construction); and (iii) Capacity Building for Trainer. 25. Malaysia did not have any new projects to be proposed this time. This is due to the fact of its concerns that the Working Group should be looking into the current projects and determine the deliverability of all the projects under the roadmap before embarking into new ones. Malaysia also reiterated its commitments to the implementation of the projects it deems can be delivered accordingly. 26. Thailand presented five project proposals as follows: (i) Training and workshop for IMT-GT Executives/Mid-management; (ii) International seminar on Women Participation in The Labour Market; (iii)Workshop on The Effectiveness And Efficiency of Technical and Vocational Training; (iv)Workshop on Project Method in Vocational Training; (v) Workshop on IMT-GT Cooperation for management and Skill Development in Tourism. 4

27. The Meeting considered the list of six priority project prioritized by IMT GT Special Consultation Meeting in July 2010 at Penang and agreed to merge and rename the title of the project into three projects as follows: (i) Harmonization, accreditation and standardization of HRD (tourism, nurse, health and spa, construction, agriculture, shipping); (ii) Enhancement of the quality of human resources in the IMT region through capacity building programs ; (iii) Compiling and disseminating information on the policies, rules and regulations covering the employment of expatriate skilled workers in the IMT-GT region, including those at the professional and managerial level. 28. The Meeting agreed that the Project Priority 1 on Harmonization, Accreditation and Standardization of HRD (tourism, nurse, health and spa, construction, agriculture, shipping) will be led by Indonesia. The first activity of the project is to set up the Task Force followed by the workshop which member countries will participate as well as CIMT and ASEAN Secretariat. Indonesia also proposed for ADB to facilitate the process by sharing its expertise on the topic, and if possible provide funding support for some activities of the Task Force (i.e. workshop). Indonesia will circulate the concept paper of the Task Force to member countries. 29. Malaysia suggested for CIMT to get background information on ASEAN initiatives on the MRA to avoid duplication of activities. As for the planned 1st Taskforce Meeting on the MRA next year which Indonesia agreed to host the event. 30. The Meeting also agreed that the five proposals proposed by Thailand will be the activities under the Priority Project 2 on Enhancement of the Quality of Human Resources in the IMT Region through Capacity Building Programs. Malaysia with CIMT will lead the Project Priority 3 on Compiling and Disseminating Information on the Policies, Rules and Regulations covering the Employment of Expatriate Skilled Workers in the region, including those at the professional and managerial level by informing the member countries of the needed information to be compiled. The revised matrix is attached as Annex 12. 31. The Meeting took note that all member countries will submit the project profile to Indonesia as the lead country by mid-October 2011. AGENDA ITEM 8 : JBC PRESENTATION 32. JBC presented the paper and briefed the Meeting on JBCs initiative and program on HRD over the last five years. The presentation elaborated that the initiatives and programs made significant progress as comprehensively appear as Annex 13 33. JBC also expressed their gratitude to the Meeting for the establishment of the Task Force to ensure the harmonization and standardization of competency of the labour in IMT-GT member countries.

34. JBC proposed to organize the International Conference on Labour Mobility in IMT, which will look into the condition of the labour market and study the behaviour of labour migrants. JBC proposed to ADB to support this activity and will submit project profile to ADB for consideration. The Meeting agreed to put this activity under the Priority Project 2. 35. JBC updated the Meeting on collaboration initiatives of two colleges RANACO Malaysia and TRI-DHARMA Bandung, Indonesia on the hospitality sector in the marine industry. This initiative is well accepted by the industry and recognized by Malaysia Qualification Authority (MQA). This serves as a model of collaboration and should be promoted by the WGHRD. On the subject of IMT-GT University Network (UNINET), the Meeting was informed that UNINET proposed to be elevated as IMT-GT Development Partner rather than participants in the WGHRD due to UNINET additional member and the belief that UNINET can contribute more to other sectors with the diversified specialization of the UNINET university members. JBC proposed to the Meeting to support UNINET request in the next SOM Meeting. 36. In responding to the JBCs information, Indonesia commented that IMT-GT is a big umbrella and explained that education is the pillar of HRD and therefore it is important that UNINET should remain intact with the WGHRD. Indonesia believed that it is important to improving and optimizing the cooperation. Separation is not an urgent agenda but how to sit together and optimize the current cooperation. AGENDA ITEM 9 : OTHER MATTERS 37. The 4th Meeting of the IMT-GT WGHRD was proposed to be hosted by Malaysia. In this regard, Malaysia agreed in principal based on rotation basis and the details will be confirmed in due course. AGENDA ITEM 10 : CONSIDERATION AND ADOPTION OF THE REPORT 38. The Meeting considered and adopted the Record of Discussion of the 3rd Meeting of WGHRD. AGENDA ITEM 11 : CLOSING SESSION 39. Malaysia and Thailand expressed their appreciation to the Government of the Republic of Indonesia for the warm hospitality extended to them and their excellent arrangements made for the 3rd Meeting of IMT-GT WGHRD.

Agreed and accepted in Jakarta, the Republic of Indonesia on 23 September 2011.