Coronavirus Pandemic Seen Pushing Up to 5 Million Indonesian Workers Out of Jobs

 JAKARTA, KOMPAS.com – Indonesian Minister of Manpower Ida Fauziyah expects around 2.92 million to 5.23 million Indonesians to be unemployed as the country reels from the coronavirus pandemic.

Based on the Indonesian Ministry of Manpower's data, the number of Indonesian workers that have been rendered jobless by the economic impact of the coronavirus pandemic totals 1.7 million.

The tally is from both the formal and informal sectors and counts workers who have been laid off or on furlough.

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“We are doing our best to keep the unemployment rate in Indonesia below two digits,” said Ida during a virtual press conference on June 18.

Ida shares her hope that the new normal transition will help improve the global business climate.

Under such circumstances, the wheels of economic growth will once again move forward and create new jobs in Indonesia.

Indonesian President Joko Widodo (Jokowi) has issued six strategic policies to mitigate the effects of Covid-19 for the business community.

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First, an economic stimulus package to discourage the business community from laying off workers.

Second, an income tax incentive for workers. Third, a social safety net with more expansive social welfare assistance for workers in the formal and informal sectors.

Fourth, prioritizing the distribution of the government’s pre-employment card for furloughed workers. Fifth, expanding labor-intensive industrial programs.

Sixth, protection for Indonesian migrant workers.

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Propping up the Indonesian economy