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.

Read also: Jakarta Provincial Government Forbids Layoffs during the New Normal Transition

“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.

Read also: Indonesian Trade Performance Nosedives Post-Ramadhan

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.

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.

State-owned enterprises have been allocated financial assistance of Rp 44.57 trillion.

Read also: Airlines and Hotels in Indonesia Need 2 Years to Recover Post Pandemic

Indonesia’s Finance Minister Sri Mulyani has trimmed the country’s 2020 GDP forecast on June 18 to a contraction of 0.4 percent or a growth of around 1 percent.

She added that the government is trying its best to mitigate the harsh economic impact of the coronavirus pandemic.

The government is working to ensure that the steps it has undertaken will support the Indonesian economy to remain in the positive zone until the end of the year. 

(Writer: Ihsanuddin, Mutia Fauzia | Editor: Bayu Galih, Sakina Rakhma Diah Setiawan) 

Source: https://nasional.kompas.com/read/2020/06/18/17144901/menaker-antisipasi-tambahan-pengangguran-hingga-5-juta-orang

https://money.kompas.com/read/2020/06/18/184614826/sri-mulyani-turunkan-batas-atas-proyeksi-pertumbuhan-ekonomi-ri-jadi-1-persen