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Help us pay wages or else we cut jobs, businesses tell govt
With prolonged nationwide emergency curbs (PPKM Darurat) to combat the second COVID-19 wave, businesses have urged more stimulus, including wage subsidies from the government, to alleviate their burden.
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A resident walks past the closed gate of the Great Mosque of Banten in Kasemen, Serang, Banten, on July 4, 2021. The provincial administration closed all tourist destinations during the emergency public activity restrictions (PPKM Darurat) to prevent COVID-19 transmission. (Antara/Asep Fathulrahman)
F
eeling the pinch of recently extended nationwide activity curbs to combat a second wave of COVID-19, businesses have urged the government to provide help, including a wage subsidy, to alleviate their burden.
Indonesian Shopping Center Association (APPBI) chairman Alphonzus Widjaja said the pandemic had hit them hard as they were forced to operate below capacity and even close malls during certain periods. The latest extension of the emergency public activity restrictions (PPKM Darurat) had worsened their financial situation.
Should the emergency curbs remain in place, APPBI members would be unable to pay their workers, forcing them to put staff on unpaid leave, or worse, cut jobs, Alphonzus said.
“We hope the government can subsidize around half of our employees’ wages in order to avoid layoffs,” Alphonzus told reporters during an online press conference on Wednesday, adding that the association also demanded tax and electricity relief.
The government recently extended the PPKM Darurat by five days to July 25 but promised to ease the rules once cases declined. Indonesia saw the number of new daily cases rise sharply to 56,757 on July 15. The number has since come back down, falling to 33,772 on Wednesday, but that is still far above the government’s short-term target of fewer than 10,000 new daily infections.
Read also: Govt extends PPKM Darurat, announces easing if cases decline
Other business associations backed the APPBI’s plea about wage subsidies through a joint statement, namely the Indonesian Employers Association (Apindo), the Indonesian Chamber of Commerce and Industry (Kadin) and associations representing various industries, such as ceramics, textiles, footwear, cosmetics, electronics, plastic, cement as well as food and beverage.
