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Govt seeks to close preemployment card loopholes

The government has issued a new regulation that attempts to close the legal and administrative loopholes at the heart of the widespread criticisms that have beset the program since it was launched in March.

Dzulfiqar Fathur Rahman (The Jakarta Post)
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Tue, July 14, 2020

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T

he government on Wednesday issued a new regulation for its flagship incentivized training program to close loopholes in the previous regulation that prompted public criticism of systemic irregularities and conflicts of interest.

The newly issued Presidential Regulation (Perpres) No. 76/2020 on the preemployment card allows the program management to demand that ineligible participants return the financial assistance (incentives) in full within 60 days. The management may also file criminal charges against ineligible participants that used falsified personal data in applying to the program.

The regulation clearly stipulates that the program is eligible to laid-off workers, furloughed employees and micro and small business owners. It also regulates the conditions for the program's offline training courses.

It further clarifies that the appointment of online training platforms as program partners and third-party training institutions is not a "procurement of goods and services", but “still takes into account the purpose, principles and ethics of the state procurement of goods and services”.

Read also: KPK highlights inefficiency, mismanagement in preemployment card program

The new regulation is not retroactive, and stipulates that all decisions taken by the program management under the previous Perpres are “legitimate, as long as they were taken with good intentions”. The program's Job Creation Committee is then required to evaluate the decisions.

The provision is applicable to the appointment of partnering platforms and third-party training institutions, among other things. 

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