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RI advances preemployment card program for workers

The government is set to move up the disbursement of training funds for workers through the preemployment card to late March as part of its broader efforts to cushion the economy from the impacts of the COVID-19 pandemic

Adrian Wail Akhlas (The Jakarta Post)
Jakarta
Mon, March 16, 2020

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RI advances preemployment card program for workers

T

he government is set to move up the disbursement of training funds for workers through the preemployment card to late March as part of its broader efforts to cushion the economy from the impacts of the COVID-19 pandemic.

Office of the Coordinating Economic Minister secretary Susiwijono Moegiarso said Thursday that Presidential Regulation No. 36/2020 issued last week would expedite the implementation of the government’s preemployment card, which would subsidize training programs for the workforce.

“According to the President’s [Joko 'Jokowi' Widodo] guide, we will issue preemployment cards in the fourth week of March. Why? This is part of our effort to tackle the COVID-19 impacts,” Susiwijono told a media briefing.

The program will be launched in three tourism-oriented regions, namely Manado in North Sulawesi, Bali and Riau Islands, where activities have been severely affected by the drastic drop in Chinese tourists arrivals.

The program was previously slated for launch in April in Greater Jakarta.

The government projected economic growth in this year’s first quarter to slow to just 4.7 percent as the novel coronavirus spread was seen as weakening purchasing power and disrupting economic activity and supply chains. In 2019’s fourth quarter, gross domestic product grew 4.97 percent, the slowest in three years.

“There are many laid-off workers in those three regions [and] now they could apply for preemployment cards to improve their competence to find new jobs,” Susiwijono said, adding that the program would not be limited to laid-off workers.

First announced during the President’s reelection campaign, the preemployment cards aim to aid job seekers and laid-off workers by granting them access and funding to a broad range of trainings.

It aims to address skill shortages, which have become a real problem in the country’s workforce, as the education system has fallen short of producing graduates with the skills needed by the industry.

The Automation and the Future of Work in Indonesia report, released in September by management consultancy McKinsey & Company, projects that 23 million jobs could be displaced by automation by 2030, but 27 million to 46 million new jobs could be created during the same period.

The government has allocated Rp 10.3 trillion (US$752.24 million) this year for the program, targeting 2 million people to join it.

Susiwijono said the government would provide Rp 500,000 for each participant to cover their accommodation and transportation costs during the training program.

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“According to the President’s guide, we will issue preemployment cards in the fourth week of March. Why? This is part of our effort to tackle the COVID-19 impacts.”

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The government has also been seeking partnerships with education technology start-ups and e-commerce platforms, including Ruangguru and Bukalapak, to allow participants to take part in various training.

Ruangguru product chief Iman Usman said the platform would participate in the program by providing relevant training vendors in prioritized areas and learning programs.

“We will provide training for prioritized skills such as coding, marketing and hospitality,” Iman told reporters after a coordination meeting on Thursday, adding that start-ups would also help workers find jobs.

Apart from the preemployment card program, the government has also unveiled economic stimulus to minimize the negative impacts of the COVID-19 pandemic on Indonesia, which include individual and corporate tax breaks, as well as the relaxation of import restrictions.

Previously, it has also introduced a Rp 10.3 trillion fiscal stimulus package to support the tourist industry and improve consumer spending to counter the economic impacts of the coronavirus outbreak.

More than 156, 745 people have contracted COVID-19 around the globe as of Sunday with more than 5,839 deaths.

Indonesian health authorities confirmed Saturday that the number of positive COVID-19 cases in the country had increased to 96, with the total number of fatalities having reached five.

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