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Govt registers 12m bank accounts in wage subsidy program
The government has registered 12 million bank accounts of eligible recipients in its COVID-19 wage subsidy program, aimed at boosting household spending amid the economic impact of the pandemic, according to a top official of Fiscal Policy Agency (BKF).
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People wait in line to receive government social cash transfers (BST) at an office complex in Cibinong, Bogor regency, on July 20. (JP/P.J. Leo)
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he government has registered 12 million bank accounts of eligible recipients in its COVID-19 wage subsidy program, aimed at boosting household spending amid the economic impact of the pandemic, according to a top official of the Fiscal Policy Agency (BKF).
The head of the BKF at the Finance Ministry, Febrio Kacaribu, said the government targeted 15.7 million workers in total and that it was waiting for around 3 million more eligible recipients of the wage subsidy to report their bank accounts to the Workers Social Security Agency (BPJS Ketenagakerjaan), whose data are the basis for the government’s assistance program.
The additional recipients are those who are registered individually at the agency, instead of through a company.
The program provides wage subsidy of Rp 2.4 million (US$162.32) to workers who earn less than Rp 5 million per month and are currently furloughed or have had their pay cut due to the pandemic. Recipients must also have been an active member of BPJS Ketenagakerjaan since June 30.
“They [the individually registered workers] should come to BPJS Ketenagakerjaan. If they report their bank account number, [the money] can be transferred,” Febrio said in a virtual presser on Wednesday.
The wage subsidy program was initially launched on Aug. 4 after Indonesia recorded an economic contraction of 5.32 percent year-on-year (yoy) in the second quarter as household spending and investment shrank.
As of May, 3 million Indonesians have been either jobless or unable to work as a result of the health crisis, which has brought the economy to a virtual standstill. With a possible recession pending third-quarter growth, the government has projected 5 million job losses this year.
The government has earmarked Rp 37.7 trillion for the wage subsidy program, 13.9 percent higher than its initial budget to cover an increase in the targeted number of recipients from 13 million to 15.7 million.
The increase in recipients was meant to fill the gap left by the existing safety net programs, including the Family Hope Program (PKH), the staple food card and the pre-employment card social assistance programs.
In total, the government has allocated Rp 695.2 trillion in COVID-19 response to boost the economy and strengthen the healthcare system.
