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Jakarta Post

Wage subsidy expanded to include furloughed, reduced pay workers

  • Dzulfiqar Fathur Rahman


Jakarta   /   Wed, August 12 2020   /  01:00 am
Lower productivity: Workers assemble Isuzu Traga trucks at the Isuzu factory in East Karawang in West Java. The productivity of Indonesian workers lags behind that of neighboring countries because of a lack of proper education.(JP/Seto Wardhana)

A week after it launched the COVID-19 wage subsidy program, the government announced on Monday that it had increased the scheme to cover a total of 15.7 million workers to spur household consumption and prevent the economy from slipping further. From its initial target of 13 million workers, the government increased the number of targeted recipients by an additional 2.7 million workers to help boost their purchasing power. The government also increased the budget for the program by 13.9 percent to Rp 37.7 trillion to cover the expansion in targeted recipients. Those people eligible for the wage subsidy are workers who earn less than Rp 5 million (US$339.25) per month and are active members of the Workers Social Security Agency (BPJS Ketenagakerjaan) as of June 30. Eligible recipients will receive a total wage subsidy of Rp 2...