Large-scale social restrictions (PSBB) have been implemented in DKI Jakarta. Similar schemes are also immediately done in the buffer area of the capital such as Bogor, Depok, Tangerang and Bekasi. All of this is an attempt to break the chain of COVID-19 virus propagation.
However, every effort to stem the pandemic of the disease carries consequences in other sectors. Economic activity remains the way, but it is very limited. Over the past two months, lethargy has struck business actors, ranging from micro to large corporations.
The most affected sector of this disease is the business that relates to mobility and dealing directly with the community. In the tourism industry, hotel business, restaurants, aviation, public transport, as well as other related industries, there are many companies whose businesses are kembang-kempis.
They have to find ways to stay afloat. Concerns about termination of employment (layoffs/PHK) are so real. For middle-class companies, doing PHK is an improper choice. Large funds must be prepared, while current cash flows are not adequate for most companies.
However, sooner or later, the layoffs option is also applied. Data from Ministry of Manpower (Kemenaker) showed that until 7 April 2020, there were 1.2 million workers who are affected by layoff and are formulated due to the slowing economy associated with corona viruses. They come from 74,430 companies.
In the informal sector, 189,452 people from 34,453 companies must accept a difficult reality to meet the needs of everyday life, as they no longer work.
In Jakarta, the spread of COVID-19 has made 25,956 workers from 2,881 companies affected by layoffs. As many as 113,332 workers from 12,591 companies were deployed without receiving wages (unpaid leave).
These figures make us uncomfortable. The numbers are obviously not to be ignore. Workers who are forced to idle still have to bear the necessities of the lives of a number of people in their homes. The next question is how governments should respond to their conditions.
We know that the government has budgeted hundreds of trillion rupiah funds for incentives to companies as well as social bearings for communities affected by the disease. There are Rp43 trillion funds for the basic food card program to 20 million recipients. There is also a village fund for social assistance of Rp21 trillion and a Rp10 trillion fund for pre-existing cards.
Cash direct assistance was also given the government worth Rp17,58 trillion to 29 million families from April to June. In Jabodetabek, there is a budget of Rp1, 1 trillion which is distributed to 2.5 million residents.
These funds are certainly a little relief. However, for companies, incentives and stimulus are not enough. The government can provide looseness to entrepreneurs as long as they are not able to operate, such as tax relaxation, the waivers of electricity and gas bills, easiness in credit and interest installments, and dues BPJS employment.
For the community, these social pads are a good policy. However, these funds need to be appropriate. In the pre-existing work program, for example, the allocation of funds for training should be used as a direct aid for cash, so that the benefits are more perceived by the people affected by layoffs or to be deployed without receiving wages.
Not all workers especially in the informal sector who are forced to idle it, can easily do training online. Moreover, there are no guarantees of those who have been trained and passed pre-existing work program can then get a job.
The money held by the community, at least in the next three months, can also be used to safeguard the rate of consumption of people, especially before Ramadan, holidays, and the enrollment season for school children.
We hope that the Government also focuses on socializing and logging the receiver of the pre-existing work program so that all the aid programs can be precise on the target. Do not let the jumbo funds be inappropriate and increase public anxiety.
However, every effort to stem the pandemic of the disease carries consequences in other sectors. Economic activity remains the way, but it is very limited. Over the past two months, lethargy has struck business actors, ranging from micro to large corporations.
The most affected sector of this disease is the business that relates to mobility and dealing directly with the community. In the tourism industry, hotel business, restaurants, aviation, public transport, as well as other related industries, there are many companies whose businesses are kembang-kempis.
They have to find ways to stay afloat. Concerns about termination of employment (layoffs/PHK) are so real. For middle-class companies, doing PHK is an improper choice. Large funds must be prepared, while current cash flows are not adequate for most companies.
However, sooner or later, the layoffs option is also applied. Data from Ministry of Manpower (Kemenaker) showed that until 7 April 2020, there were 1.2 million workers who are affected by layoff and are formulated due to the slowing economy associated with corona viruses. They come from 74,430 companies.
In the informal sector, 189,452 people from 34,453 companies must accept a difficult reality to meet the needs of everyday life, as they no longer work.
In Jakarta, the spread of COVID-19 has made 25,956 workers from 2,881 companies affected by layoffs. As many as 113,332 workers from 12,591 companies were deployed without receiving wages (unpaid leave).
These figures make us uncomfortable. The numbers are obviously not to be ignore. Workers who are forced to idle still have to bear the necessities of the lives of a number of people in their homes. The next question is how governments should respond to their conditions.
We know that the government has budgeted hundreds of trillion rupiah funds for incentives to companies as well as social bearings for communities affected by the disease. There are Rp43 trillion funds for the basic food card program to 20 million recipients. There is also a village fund for social assistance of Rp21 trillion and a Rp10 trillion fund for pre-existing cards.
Cash direct assistance was also given the government worth Rp17,58 trillion to 29 million families from April to June. In Jabodetabek, there is a budget of Rp1, 1 trillion which is distributed to 2.5 million residents.
These funds are certainly a little relief. However, for companies, incentives and stimulus are not enough. The government can provide looseness to entrepreneurs as long as they are not able to operate, such as tax relaxation, the waivers of electricity and gas bills, easiness in credit and interest installments, and dues BPJS employment.
For the community, these social pads are a good policy. However, these funds need to be appropriate. In the pre-existing work program, for example, the allocation of funds for training should be used as a direct aid for cash, so that the benefits are more perceived by the people affected by layoffs or to be deployed without receiving wages.
Not all workers especially in the informal sector who are forced to idle it, can easily do training online. Moreover, there are no guarantees of those who have been trained and passed pre-existing work program can then get a job.
The money held by the community, at least in the next three months, can also be used to safeguard the rate of consumption of people, especially before Ramadan, holidays, and the enrollment season for school children.
We hope that the Government also focuses on socializing and logging the receiver of the pre-existing work program so that all the aid programs can be precise on the target. Do not let the jumbo funds be inappropriate and increase public anxiety.
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