A mass-unemployment crisis might possibly happen as coronavirus cases in Indonesia are getting worse. As businesses in the country halt operations, approximately 2.8 million people nationwide have lost their jobs.
Local news Okezone reported that these numbers potentially increase considering the situation. Accordingly, the number of employment in Indonesia might still escalate to approximately 2.9 up to 5.2 million people.
The elevation of unemployment in the country follows government’s large-scale social restriction measures to mitigate the spread and damage of COVID-19. The regulation dictates suspension of schools, offices, public activities and religious rituals, leaving urgent businesses to continue operating.
With regards to this issue, companies have been starting to implement work from home or telecommuting to resume their business safely. However, not every profession can be administered using the method.
As a result, companies have to temporarily or fully cut ties with their workers to secure their finances. Businesses even have to call off their operations in the meantime in response to the situation.
Also Read: Indonesia Potentially Becomes New Coronavirus Epicenter
Government Responds to Rising Unemployment in Indonesia
Regarding the situation, the government announces that it has prepared short and long-term measures to address the issue. Minister of Finance Sri Mulyani stated in a teleconference that the government will provide financial aids for the people who lose their jobs during the pandemic.
As a short-term attempt, the government will issue a pre-employment card program. Having a budget of Rp 20 trillion, the program is basically a social safety net acting as unemployment financial benefits, consisting of several batches.
Since a day after its launch, roughly 1.4 million people have applied for the the benefits. During this first registration phase, people who succeed in earning the benefits may receive financial aids for four months.
Meanwhile, as a long-term measure, the government will work on maintaining the country’s attractiveness for investments. In so doing, the government will give tax incentives in which, for the time being, focusing on manufacturing industries.
Also Read: How to Face Unemployment during Coronavirus Outbreak
