Govt in Indonesia to Provide Wage Subsidy for Workers

August 31, 20204:50 pm648 views
Govt in Indonesia to Provide Wage Subsidy for Workers
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Workers in Indonesia will get additional help from the government in the form of wage subsidy. Launched on Thursday (Aug 27) by President Joko Widodo, the wage subsidy assistance program will be distributed to workers with income below IDR5 mil.

According to Manpower Minister Ida Fauziyah, the Ministry of Manpower (Kemnaker) is currently preparing the administration for the first-stage transfer of assistance after earlier obtaining 2.5 million validated recipient data from the Workers Social Security Agency (BPJS Ketenagakerjaan).

Earlier, the government had planned to provide wage subsidies to 15.7 million private workers and non-civil servants, with income below IDR5 mil. The recipients must be registered as members of the BPJS Ketenagakerjaan as of June 2020.

Prospective recipients will obtain monthly assistance of IDR600 thousand for four months, or IDR2.4 mil in total. The assistance will be sent directly to the account of the prospective recipient.

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BPJS Ketenagakerjaan has, until now, gathered data on the accounts of 13.8 million potential beneficiaries for validation in stages to ensure that the assistance is right on target.

As planned, BPJS Ketenagakerjaan, on a weekly basis, will submit at least 2.5 million data on potential recipients to the Ministry of Manpower, which will then conduct further data conformity checks.

The minister is upbeat about this assistance being able to help workers whose incomes got impacted by the COVID-19 pandemic.

The program complements other social safety net programs implemented by the government to deal with the impact of the pandemic, such as social assistance by the Ministry of Social Affairs and the Pre-Employment Card.

“It is expected to help our fellow workers that have had a tremendous impact these days,” the minister remarked.

Read also: Indonesia Govt to Spend $50 bil Stimulus for Workers to Revive Sluggish Demand