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Temporary aid falls short without structural reform
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Long-term solution?: A woman displays cash aid she received on Aug. 12, 2024, from the government at the Tangerang district government office in Banten, West Java. (Antara/Sulthony Hasanuddin)
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s the government rolls out a new stimulus package to cushion the impact of the economic slowdown, concerns are growing over its long-term effects, with experts warning of potential public dependency on temporary welfare assistance and calling for more sustainable economic measures.
In a statement issued on Monday, the government launched a Rp 22.44 trillion (US$1.38 billion) stimulus package to be distributed throughout June and July, with a focus on transportation assistance, social aid and wage subsidies. An earlier plan to include electricity subsidies was later scrapped.
Under the scheme, around 18.3 million recipients will receive monthly cash aid of Rp 200,000 along with 10 kilograms of rice, while Rp 300,000 in wage subsidies will be allocated to 17.3 million low-income workers, including 565,000 nonpermanent teachers.
Nabila Zara, not her real name, is a 22-year-old nonpermanent teacher in Tangerang, Banten, who has spent the past few months working at a private junior high school in the city. She revealed that her monthly wage falls far below Banten’s regional minimum wage of Rp 2.9 million.
“A wage subsidy, if it is actually given, would help a lot since my salary is not enough to cover my basic needs,” she told The Jakarta Post after learning about the government’s new incentives.
Still, she expressed skepticism about its impact, “To be honest, I wish the support came more regularly, not just once. But what can you really expect from the government? I just hope the incentive is not empty talk”.
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