This is in line with the ILO’s Centenary Declaration for the Future of Work in 2019, which calls on governments to create a set of measures addressing the challenges of unprecedented transformational change in the world of work, focusing on the human-centered economic agenda.  

The declaration focuses on three areas of action, namely increasing investments in people’s capabilities, the institutions of work and decent and sustainable work. However, this will not be an easy job as the country is facing an unexpected economic downturn because of the COVID-19 outbreak.

In April, the International Monetary Fund (IMF) projected that the Indonesian economy would grow by a mere 0.5 percent in 2020, but this growth rate is only applicable if the pandemic passes and the economy goes back to normal in the second half of the year. Many analysts even foresaw a contraction.

Furthermore, the demographic dividend is seen as a “two-edged sword”. In one hand, having a larger productive population (ages 15 to 65) than a nonproductive one will help the country’s savings and productivity.

In contrary, failing to reap the benefits of the golden window opportunity of the demographic dividend will keep the country stuck in a middle-income trap”. Worse, increasing unemployment in the long term may lead to social tensions and unrest.

Due to the outbreak, many businesses have laid off their employees. According to the Indonesian Chamber of Commerce and Industry (Kadin), 6 million workers have been dismissed. To address the issues, the government has corrected the market’s failure by allocating a stimulus package worth US$17.2 billion for the private sector.

Popular

Much ado about asset forfeiture

Mass poisonings cast doubt on free meals reforms

Indonesia, China eye cooperation to boost 3 million homes program