DPR And Economists Offer Suggestions To Prevent Mass Layoffs

JAKARTA - Mass layoffs (layoffs) as a result of the corona virus pandemic or COVID-19, will lead to the death of the economic engine. If the wave of layoffs is inevitable, bankruptcy or mass bankruptcies can also occur.

Deputy Chairman of Commission VII DPR Eddy Soeparno proposed a salary support or income support model. According to him, the government could apply this model as an effort to prevent a wave of layoffs.

Income support is a government policy to help pay part of employee salaries and prevent layoffs.

"This policy is indeed unusual. However, the world economy is also hit by a global crisis. So that countries such as Singapore, Malaysia, Thailand, and even the United States are implementing this income support policy," he said, in a virtual discussion entitled "Preventing Mass Layoffs Saves the National Economy" , in Jakarta, Friday, April 17.

This PAN politician has the view that the increase in the number of layoffs in the midst of the COVID-19 pandemic is very fast. Not only in the formal sector, but also in the informal sector. In fact, the informal sector has been supporting the national economy so far.

"The impact of layoffs creates social problems and burdens the state budget. Not to mention the flow of workers returning to their hometowns will be an additional burden for the regions," he said.

Eddy said, in the current emergency condition, the business world awaited quick and right decisions, both in the industrial sector and MSMEs.

According to him, the statement of the Minister of Manpower Ida Fauziyah that 1.5 million workers have been sent home and 10 percent of them have been laid off is a very worrying fact.

"Do not let us be late and determine the wrong policy. Because failure to handle the wave of layoffs will result in the business world going bankrupt and an increase in bad credit at banks," he explained.

Salary deduction

Meanwhile, to deal with the COVID-19 pandemic, social solidarity from all parties is needed, including President Joko Widodo (Jokowi). Moreover, the stimulus and budget reallocation issued by the government for handling COVID-19 are still lacking.

INDEF economist Bhima Yudhistira said global bonds with a tenor of up to 50 years would only make children and grandchildren bear the burden of financing the crisis in 2020.

According to Bhima, rather than issuing global bonds, it would be better if the government, in this case President Jokowi, Vice President Maruf Amin, and Millennial Staff donate part of their salary to help deal with COVID-19.

Bhima explained that cutting wages is an effort that the government can take in order to help build solidarity with people affected by COVID-19.

"There is no solidarity that shows from the central government. I don't understand why the salaries of the President, Vice President, and Millennial Status were not donated. For example, 50 percent to 60 percent, for handling COVID-19," he said.

Furthermore, Bhima emphasized that the proposal related to cutting the salary of the President, Vice President to Millennial Status is only one option to try to build collective awareness. Besides the budget stimulus to strengthen the economic sector, it also needs to be added and must be targeted.

"So I want to say that the option for debt is even the last option. After we carried out significant budget relocations. But it was not done in Indonesia. So this is a note, a recommendation that we hope can make a recovery," he said. he explained.