Wage subsidy program expected to prevent job losses in Indonesia: govt

Wage subsidy program expected to prevent job losses in Indonesia: govt

Labor Minister Ida Fauziyah. (ANTARA/HO-Kementerian Ketenagakerjaan/MY )

Jakarta (ANTARA) - Manpower Minister Ida Fauziyah said the government's wage subsidy program (bantuan subsidi upah or BSU) was expected to help prevent workers affected by COVID-19 from  getting laid off amid the enforcement of public activity restrictions (PPKM).

"The BSU (aid) is expected to increase purchasing power and ensure the prosperity of the workers. The aid is also expected to assist employers in maintaining their businesses during COVID-19 pandemic," the minister said here Thursday.

"Through this aid, we hope the harmonious and conducive relations within companies are maintained, so, once again, termination of employment can be avoided," Fauziyah said.

She hoped that the BSU scheme would be able to reduce companies' burden so that employers and employees can work together to find solutions to the impacts of the pandemic.

Under the BSU 2021, eight trillion Indonesian rupiahs (about US$551 thousand) will be allocated to eight million people, with each beneficiary receiving Rp1 million (about US$69) via bank transfer, the minister added.

The aid amount is still an estimate as the data is still being worked on by the Workers Social Security Agency (BPJS Ketenagakerjaan), Fauziyah pointed out.

Related news: Manpower Ministry apportions Rp37.7 trillion for wage subsidies

To receive the aid, workers need to be Indonesian citizens, registered under the Worker Social Security Program (Jamsostek), and still active in BPJS Ketenagakerjaan, she informed.

The aid will only be provided to workers living in PPKM Level 4 Zones, as laid out in Ministry of Home Affairs Instruction No. 20 Year 2021 to No. 23 Year 2021 on Micro Community Activities Restriction Enforcement and Optimizing Corona Virus Disease 2019 Handling Posts in Village Levels for Corona Virus Disease 2019 Spread Control, she said.

The beneficiaries will be required to pay a fee, which will be accounted for from the Rp3.5-million salary, as reported by employers to BPJS Ketenagakerjaan, she said.

The BSU will be provided to workers from sectors impacted by the PPKM, such as the consumption industry, trade and services, except education and healthcare, transportation, miscellaneous industries, property, and real estate, Fauziyah said.

"BPJS Ketenagakerjaan has been chosen as the data source since, at the moment, it has the most accurate and complete (data), thus (making it) accountable and valid to be used by the government as the basis for allocating the subsidy fast and accurately," she added. 


Related news: Government disburses Rp5.84 trillion in wage subsidy in two tranches