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November 10, 2020, 06.05 PM

JAKARTA, – The Minister of Industry is exploring options to prevent coronavirus pandemic-induced mass layoffs in Indonesia.

Minister Agus Gumiwang Kartasasmita and his team have offered one solution to the industrial sector: allow industries to operate throughout the pandemic by adhering to health protocols.

“We have to make sure that industries continue to operate. From the start, we have been spinning our brains trying to figure out a solution that will allow industries to operate amid this pandemic.”

Read also: Indonesian Employers Warn of Mass Layoffs Ahead of Wage Hikes in 2021

Agus said that allowing industries to operate as normal will reduce the likelihood of mass layoffs in Indonesia and the chance of enforcing work-from-home arrangements.

The Minister thus expects economic activities to resume, supporting national economic recovery efforts.

However, Agus has hope that investments will absorb the labor force and minimize the chances of mass layoffs in Indonesia.

“We are fully aware that allowing industries to operate will avoid mass layoffs in Indonesia. But there is a present surprise which is that investment flows will cushion the labor market.”

Read also: Joe Biden Presidency Raises Indonesia’s Foreign Investment Outlook

Investment in the industrial sector increased by 37 percent year on year amounting to Rp 201.9 trillion during January-September 2020.

“Investment is essential for us to steer clear of mass layoffs and for creating new job opportunities.”

The Central Statistics Agency recorded an increase in the number of unemployed workers in Indonesia in August 2020 totaling 2.67 million new jobless citizens.

As such, the total number of unemployed workers in Indonesia is 9.77 million people.

(Writer: Yohana Artha Uly | Editor: Ambaranie Nadia Kemala Movanita)


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