Gov’t to Provide Salary Subsidy for Non-Tenured Teachers, Educators

Head of the National Economic Recovery Working Committee delivers press statement at the Presidential Palace, Jakarta, Wednesday (16/9). (Photo: BPMI)

The National Economic Recovery (PEN) Working Committee continues to accelerate the distribution of the National Economic Recovery program, one of which is in the form of salary subsidy for non-tenured teachers, educators, and non-tenured staff at education offices in regions.

According to Chairman of the Working Committee Budi Gunadi Sadikin, until 14 September 2020, salary subsidies had been distributed to 398,637 non-tenured employees in the education sector.

“The subsidy amounting to Rp600,000 per month is given every two month, starting from 27 August 2020 by Ministry of Manpower in collaboration with Manpower Social Security (BPJamsostek),” Budi said Wednesday (16/9).

In the meantime, non-tenured teachers who receive subsidized salaries, according to Budi, are those who are registered as BPJamsostek participants and have monthly earning of less than Rp5 million.

The recipients include non-civil servant workers at ministries and institutions, but excluding state-owned enterprises employees.

Until 14 September 2020, the Salary Subsidy Program has disbursed Rp7 trillion or 17.43% of the total budget of Rp37.87 trillion and by the end of the year, as many as 15.72 million workers are targeted to receive the subsidy.

“The Government continues to verify data related to non-tenured teachers. We hope the number (of recipient) can increase,” he said.

Since its establishment on 20 July, Budi said that the PEN Working Committee had helped channel the national economic recovery budget of Rp87.58 trillion.

The Working Committee, he added, will also try to encourage the absorption of the budget to reach Rp100 trillion by the end of the third quarter.

“The target for budget absorption to reach Rp100 trillion in the third quarter is part of a crucial process to address negative growth in Gross Domestic Product (GDP) in the second quarter,” said Budi.

Budi explained that Indonesia’s GDP is around US$1 trillion or Rp14,500 trillion and if divided by four quarters, then the GDP will be Rp3,600 Trillion per quarter.

However, with a growth of minus 5.3% in the last quarter, Budi added, 5.3% of the Rp3,600 trillion will have a corrected growth rate of around minus Rp188 trillion.

“Until 14 September 2020, the absorption of the national economic recovery budget has reached Rp240.9 trillion or 34.6% of the budget ceiling of Rp695.2 trillion. Of this amount, the PEN program absorption has reached Rp204.97 trillion which focuses on the social protection sector, MSMEs, and ministries / institutions / regional governments,” he added.

Another new program launched in August 2020, continued Budi, namely the Productive Presidential Assistance for Micro Enterprises, has reached Rp13 trillion or 61% of the total budget ceiling of Rp22 trillion with 5.5 million beneficiaries of the target of 9.1 million.

“The Government also plans to increase the beneficiaries to 12 million for this program,” he said. (Communication Team of the COVID-19 and PEN Working Committee / EN)

Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas