Jakarta (ANTARA) - The government will provide incentives and stimuli to industries to anticipate the impact of the predicted global recession in 2023, Industry Minister Agus Gumiwang Kartasasmita has informed.

"The government will try to create or issue policies, especially incentives or stimulus policies that we had done in the early days of COVID-19 in Indonesia, which were basically more complicated than what we are facing now," Kartasasmita said at the "Link and Match between Small and Medium-Scale Automotive Components Industries with APM Suppliers" press conference here on Tuesday.

He explained that the incentives or stimuli that will be provided are expected to encourage economic optimism in the country.

"It is important for us to create the strength of the domestic market, it becomes our capital," he said.

However, he did not reveal what kind of incentives will be provided by the government. He said that his ministry will study the conditions first because there are many factors making the industry situation difficult, such as the global market and industrial raw materials.

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Furthermore, he said that so far, he has not received any reports related to layoffs from industry players affected by the global crisis.

The Industry Ministry will strive to assist industry players so that they can continue to run their businesses without having to cut the number of employees amidst difficult conditions.

"We have not received any reports from industry players about layoffs, but we are constantly carrying out supervision so that they can continue to operate without needing to reduce (the number of) their employees," he said.

Earlier, vice chairperson of the Indonesian Chamber of Commerce and Industry (Kadin), Shinta W. Kamdani, had predicted that the labor-intensive sector will resort to layoffs because of a sharp fall in market demand.

Although she did not state when the wave of layoffs in the labor-intensive sector will occur, she said that many companies will carry out efficiencies to survive.

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Translator: Ade J, Kenzu
Editor: Suharto
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