Ministry prepares criteria for businesses to receive recovery stimulus

Ministry prepares criteria for businesses to receive recovery stimulus

Indonesia's Industry Minister Agus Gumiwang Kartasasmita. ANTARA/HO-Industry Ministry/sh

One of the criteria is linked to the absorption of workers.
Jakarta (ANTARA) - The Industry Ministry has readied criteria for business sectors eligible to receive recovery stimulus under the National Economic Recovery Program (PEN).

"One of the criteria is linked to the absorption of workers," Industry Minister Agus Gumiwang Kartasasmita noted in a statement here on Friday.

Kartasasmita stressed on the importance of giving special attention to the labor-intensive sector to enable those engaged to continue operations and prevent them from conducting mass layoffs while simultaneously maintaining the people's purchasing power.

"It holds significance since this sector absorbs a significant number of workers, and any shocks in the sector will affect workers and their families," he explained.

Stimulus in credit and working capital for recovery of the manufacturing industry is covered in the PEN Program, as stipulated in Government Regulation No. 23 of 2020 on implementation of PEN amid the COVID-19 pandemic.

The regulation calls to give special attention to business operators in the real and financial sectors, including micro-, small-, and medium-scale enterprises, large-scale businesses, and cooperative units also reeling from the impacts of the pandemic.

Speaking in connection with the price incentive for energy, the minister pointed out that the government had suggested the state-electricity company PT PLN and state gas company Perusahaan Gas Negara (PGN) to scrap the minimum fee for the two services.

On a separate occasion, Chairman of the Indonesian Employers Association (Apindo) Hariyadi Sukamdani highlighted the need for additional working capital for the business sector in the wake of the COVID-19 pandemic having caused a deficit in cash flow.

Apindo has suggested some forms of working capital stimulus that should be offered for all business sectors.

Deputy Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) for international relations Shinta Wijaya Kamdani has urged the government to constantly monitor the disbursement of working capital stimulus for the industry.

"Two key areas of concern pertaining to working capital are firstly, the amount must be adjusted to the industry requirements and secondly, its disbursal must be monitored to ensure it reaches the right target," Kartasasmita added.
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