Assistance to Salary Workers Under IDR 5 Million Will Only Create Jealousy

JAKARTA - The new stimulus package will be issued by the government. Namely, salary assistance of IDR 600 thousand for four months. But, it has drawn criticism from economists. This assistance is considered to create jealousy and injustice.

Executive Director, Indef Tauhid Ahmad, said that this assistance would only add new problems for the government amid the COVID-19 pandemic. The unequal distribution tends to result in friction in society.

"There will definitely be jealousy in the community. In the formal sector, there are 52 million workers, informal up to 50 million workers. Yes, of course. If the classification says only a few workers can get it, while there is no priority for the lowest group of workers, it could increase inequality," said Tauhid when contacted by VOI, Tuesday, August 11.

According to Tauhid, if the aim of the government to issue this assistance is to increase public consumption in order to drive the national economy, the target won't be workers with salaries or wages below IDR 5 million. However, the poor who have salaries below the provincial minimum wage (UMP) is IDR 2.9 million.

"Those who get this assistance is below IDR 5 million, while the average minimum wage nationally is IDR 2.9 million. Automatically, the non-poorest group of people will get this assistance. The poor generally earn wages below IDR 3 million or even IDR 1, 8 million per month," he said.

Tauhid said, since the government target isn't the poor, the salary assistance will not boost people's consumption. This is because the assistance will usually be used for spending on education and health.

"Indeed, there will be purchasing power, but it won't be very large. It would be different if this assistance is intended for low worker groups, below IDR 2.9 million or below IDR 2.5 million. That will further encourage them to increase their purchasing power," he explained.

BPJS Ketenagakerjaan Unregistered Workers Need More Help

Ideally, this government salary assistance targets informal sector workers who are not registered with BPJS Ketenagakerjaan, but have a lower income than the average national UMP.

There are many workers who aren't registered with the BPJS Ketenagakerjaan. The requirement to participate is the domicile of UMP. Meanwhile, their salaries are on average below the UMP.

"For example, the worker's salary is IDR 1.5 million, while the provincial minimum wage of IDR 1.8 million cannot be registered. The minimum is IDR 1.8 million, whereas those below IDR 1.8 million are actually much more than what employers register," he said.

According to Tauhid, workers whose salaries are below IDR 2.9 million should be the government's priority. This is because they are included in the poor and vulnerable groups of poverty. The assistance shouldn't be provided through BPJS Ketenagakerjaan. But, through companies that will be verified later.

"Because it should be for those who get the lowest income. If they are low, there is a slight shock. They are very sensitive to poverty, unemployment, and even social impacts in society," he explained.