Gov’t Set to Provide Stimulus, Create More Jobs Through Labor-Intensive Projects
Funding for Cash Labor-Intensive Program at four ministries to tackle COVID-19. (Source: Ministry of Finance)
The Government continues to strengthen commitment to speed up economic recovery amid the COVID-19 pandemic by providing stimulus with real benefits for the public as well as by creating jobs through labor-intensive projects.
According to Minister of State-Owned Enterprises Erick Thohir – who also helms the COVID-19 Mitigation and National Economic Recovery Working Committee – the stimulus will be in the forms of social assistance programs for the disadvantaged and interest and credit subsidies for micro, small, and medium enterprises (MSMEs).
The Minister also pointed out that efforts to speed up economic recovery go hand in hand with health efforts and measures to build a sense of security amid the pandemic.
A sense of security, he added, can encourage the middle and upper level people to spend their money or savings on productive or investment sectors, thereby driving the country’s economy.
“Economic recovery programs implemented by the Government are quite numerous but mutually sustainable, such as Social Cash Assistance, Non-Cash Food Assistance (BPNT), the Family Hope Program (PKH), and credit distribution in the MSMEs sector. It takes time, accurate data, and coordination with many parties to materialize the assistance. The accelerated realization of economic recovery program goes hand in hand with the Government’s top priority for health and encourages changes in people’s behavior during pandemic so that health can recover and the economy will rebuild,” he said in a press statement, Wednesday (5/8).
On that occasion, the Minister also confirmed statement of Minister of Finance Sri Mulyani that the next stimulus is additional salary assistance to workers with certain income in the form of Direct Cash Assistance (BLT).
“The Government has launched an assistance program for the disadvantaged and laid-off workers affected by the pandemic through the Pre-Employment Card Program. The provision of additional salary assistance aims to encourage public consumption crucial to drive the economy and to speed up economic recovery,” he said.
The stimulus program, according to him, is being finalized so it can be carried out by Ministry of Manpower next month.
“The Government assistance this time focuses on 13.8 million non-civil servants and state-owned enterprises employers who are actively registered in the Workers Social Security Agency (BPJS Ketenagakerjaan) with a premium below Rp150,000 per month or equivalent to salaries below Rp5 million per month. Assistance of Rp600,000 per month for four months will be immediately given every two months to the bank account of each worker to avoid misuse of the funds,” he said. (Communication Team of the COVID-19 Mitigation and PEN Working Committee/ EN)
Translator: Muhardi
Reviewed by: M. Ersan Pamungkas
