Govt Disburse Wage Subsidy to Prevent Indonesian Workers from Losing Their Jobs

July 23, 20214:16 pm1305 views

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Following a surge in the number of Covid-19 cases, the Indonesian govt is extending the emergency public activity restriction (PPKM Darurat) in the islands of Java and Bali to 25 July 2021. During the restriction period, non-essential businesses are expected to halt their operations and employers are encouraged to allow their employees to work from home.

In a bid to prevent workers from getting laid off amid the restrictions, the government is going to disburse the wage subsidy program (bantuan subsidi upah or BSU). Manpower Minister Ida Fauziyah said that the aid is expected to increase purchasing power and ensure the prosperity of the workers. The aid is also expected to assist and reduce employer’s burden so they can maintain their businesses during the pandemic.

“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.

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, ANTARA News reports.

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

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. 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.

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