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

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.

Read also: Ministry of Foreign Affairs: Indonesian Covid-19 Cases in Saudi Arabia Mostly Migrant Workers

Propping up the Indonesian economy

The central government has issued several policies to support the Indonesian economy and prevent a surge in the unemployment rate in Indonesia.

Funding for Covid-19 management has been increased from Rp 405.1 trillion to Rp 677.2 trillion.

As a result, the state budget has grown by Rp 272.1 trillion or 67 percent. Approximately Rp 87.55 trillion of the coronavirus management aid has been allocated to the healthcare sector.

Social welfare and protection programs have been allocated Rp 203.9 trillion.

Small and medium enterprises have been allocated Rp 123.46 trillion in aid while the business community is poised to receive Rp 120.61 trillion in financial aid.