Said Iqbal ensures that the labor action plan at the Ministry of Finance is canceled.

JAKARTA - Special Advisor to the President for Employment and Labor Welfare Said Iqbal ensured that the labor action at the Ministry of Finance, Jakarta, which was planned to take place on Thursday (9/7) was not held.

The cancellation was made after a meeting point and good faith from the government in responding to workers' aspirations regarding tax policies on Old Age Security (JHT).

"Tomorrow's action is canceled, because there is already a meeting point and good faith from the government," said Said Iqbal as reported by ANTARA, Wednesday, July 8.

According to him, the cancellation of the action does not mean that the discussion of labor demands has stopped. The discussion will continue through a meeting of the Ministry of Finance team with BPJS Employment.

He also plans to meet with the Chairman of the BPJS Employment in the next few days. This step is said to be part of an effort to accelerate the resolution of issues concerning workers' rights.

In addition, he also admitted that he received instructions from President Prabowo Subianto to avoid the potential for layoffs.

"The message from President Prabowo Subianto to me is direct, avoid layoffs as much as possible. Make policy interventions if it is really needed by the business world and workers. If layoffs cannot be avoided, then workers' rights must be given," he said.

Said Iqbal visited the Ministry of Finance to submit a proposal to abolish taxes on old age insurance (JHT), holiday allowance (THR), pension guarantees, to severance pay to Finance Minister Purbaya Yudhi Sadewa.

According to him, these various types of taxes are imposed on income that is the last economic cushion for workers, especially when facing layoffs or entering retirement.

One of the main highlights is the tax on the disbursement of JHT. He assessed that JHT is a social savings for workers, so that taxes should not be imposed on the principal of the savings.

If there is a tax imposition, the burden is considered more appropriate to be directed at returns, as is the case with commercial savings.

In addition to JHT, he also asked the government to consider abolishing taxes on THR, pension funds and severance pay. These components are considered to have a protective function for workers and their families, especially in economically vulnerable times.