Jakarta Provincial Government Forbids Layoffs during the New Normal Transition

 JAKARTA, KOMPAS.com – The Jakarta provincial government has forbidden companies based in the capital city from laying off workers during the new normal transition.

Jakarta has set the new rule via Decree of the Jakarta Manpower, Transmigration, and Energy Agency No. 1477 Year 2020, which was distributed June 15.

Jakarta-based firms have been grappling with the economic impact of the coronavirus pandemic that has severely affected Indonesia.

Read also: Indonesian Government Eyes Economic Rebound in 2023

The Indonesian economy sunk to a historic low of 2.97 percent year-on-year growth for the first quarter of 2020.

The country’s central government predicts that around 2.9 million to 5.2 million workers are likely to be furloughed as a result of the coronavirus pandemic.

Jakarta has not been spared the rising unemployment trends.

The new decree requires companies to provide full rights for all of their employees during the new normal transition.

Signed by the Head of the Jakarta Manpower, Transmigration, and Energy Agency, Andri Yansyah, the decree stipulates that "[Companies] are not to conduct employee termination and would ensure employees their basic rights."

The Jakarta Provincial Government has included the regulation of two working hour shifts that companies must implement in the new normal transition.