The initiative was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference at the Indonesia Stock Exchange (IDX), here on Monday.
Hartarto stated that the formation of the two new institutions is also a direct response to demands raised by labor unions during recent widespread protest.
“This ensures that economic growth remains sustainable and does not come at the expense of workers’ welfare,” he mentioned.
The institutions are designed to provide an early warning system, support re-skilling efforts, and facilitate the strengthening of social dialogue.
The minister also underlined that the government aims to demonstrate its commitment to maintaining economic stability while also protecting workers. President Prabowo Subianto has also given clear directives regarding labor issues.
“The President has stated that the government he leads is determined to always fight for the people, including those who are most marginalized and left behind,” Hartarto Said.
In addition, the President also reminded the importance of national unity by urging the public not to be easily provoked or pitted against one another.
The announcement comes in the wake of widespread labor protests held across various regions in Indonesia from Thursday to Sunday (August 28-31).
In several areas, the demonstrations escalated into unrest and chaos in various regions of Indonesia, most of whom were civilians and not even participants in the demonstrations.
In response, President Prabowo has instructed the Indonesian National Armed Forces (TNI) and the National Police (Polri) to remain in unity to strengthen national stability.
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Translator: Bayu Saputra, Kuntum Khaira Riswan
Editor: Arie Novarina
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