Gov’t to Provide Wage Subsidy for Workers, Laborers

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 10 Agustus 2020
Category: News
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Minister of Manpower Ida Fauziah delivers press statement after attending a limited meeting. (Photo by: Cabinet Secretariat PR)

The Government will provide wage subsidy for 15,725,232 workers or laborers to protect, maintain, and increase their economy during the pandemic, according to Minister of Manpower Ida Fauziah.

“The subsidy is part of stimulus program coordinated by National Working Committee for Economic Recovery, Ministry of State-owned Enterprises, Ministry of Manpower, Ministry of Finance, and BPJS Ketenagakerjaan (Social Security Provider Body for Employment)” the Minister said in a press statement at the Presidential Office, Jakarta, Monday (10/8).

Those eligible for the subsidy, are:

First, Indonesian citizen, proved by national ID card;

Second, workers registered as active participants of the Social Security Provider Body for Employment program, proved by membership number;

Third, those with salary or wage below Rp5 million and have been paying BPJS Ketenagakerjaan monthly premium based on their wage which has been reported to the Agency until June 2020;

Fourth, workers who have active bank accounts and are not beneficiaries of Pre-employment Card.

“The wage subsidy will be transferred from channeling banks to accounts of the beneficiaries through banks member of the Association of State-owned Banks (Himbara),” the Minister explained.

The amount of the subsidy is Rp600,000 per month for four months which will be disbursed to the workers or laborers once in every two months or Rp1,200,000 for every one disbursement.

“Data to choose prospective beneficiaries of the program is sourced from the BPJS Ketenagakerjaan database that will be verified and validated to comply with the aforementioned requirements. BPJS Ketenagakerjaan is responsible for the accuracy of data of workers or laborers,” she said.

The Government, she added, uses the BPJS Ketenagakerjaan data for the subsidy since it considered the most accurate, comprehensive, accountable, and valid data.

“The subsidy is given to workers registered as active participants of the BPJS Ketenagakerjaan as a token of appreciation for workers or laborers who have been paying BPJS premium regularly,” the Minister said adding that the subsidy also aims to increase the members of Social Security program as an effort of transformation towards an advanced Indonesia.

She went on to say that data for prospective beneficiaries of the subsidy is taken from BPSJ Ketenagakerjaan data as of 30 June 2020. Therefore, those registered within that period and met all requirements are eligible for the subsidy.

For the record, the initial number of beneficiaries targeted for the subsidy was 13,870,496 workers. However, the number increased to 15,725,232 so there will be more people who receive subsidy from the Government. For that reason, budget allocated for the subsidy increased from Rp33.1 trillion to Rp37.7 trillion.

“Since accuracy in validating data of workers and laborers is crucial for the effectiveness of the program, Ministry of Manpower will form a coordinating team for the implementation which will be supported by the police, Attorney General office, the Supreme Audit Agency (BPK), the Development Finance Comptroller (BPKP), and the Corruption Eradication Commission (KPK),” she stated.

On that occasion, the Minister also expressed hope that the workers receiving the subsidy will spend the money to buy local products. (TGH/EN)



Translated by : Rany Anjany
Reviewed by:  Yuyu Mulyani

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