This Is The Hope Of The BUMN Workers Union So That There Will Be No Mass Layoffs

JAKARTA - Deputy Chairman of the Strategic Division of the Federation of Synergy Workers Unions (FSPS) of BUMN, Effnu Subianto, said that the current condition is the right time for companies to share after enjoying years of profit.

According to him, business actors must empower their capabilities in order to maintain business performance as well as save employees from the threat of termination of employment (PHK).

"Please use the company's savings to survive and save employees from being laid off," he told VOI, August 4.

Effnu added, in addition to the active role of entrepreneurs, the government also needs to intervene to help economic activities so that mass layoffs can be avoided. One of the things he emphasized was the business sector tax policy.

“The government can help in the form of tax exemptions. I think the 25 percent tax exemption is the same as even higher corporate growth. Automatically, the issue of layoffs does not need to occur," he said.

The man who is also listed as the Chairman of the Indonesian Cement Employees Union (SKSI) also said that the stipulation of the Imposition of Restrictions on Community Activities (PPKM) must be ended immediately in order to boost economic activity.

Instead, a number of rules regarding health protocols and medical programs need to be increased more massively.

“The PPKM policy must be ended immediately and the mass vaccine intensified tirelessly. In addition, the discipline of health protocols needs to be considered so that health care is in line with economic activities," he stressed.

For information, one of the indicators of domestic macroeconomic performance, namely the Purchasing Managers Index (PMI Manufaktur), is known to slow down in July 2021 to a level of 40.1 or is in the non-expansive category.

In fact, in the last nine months before July 2021, Indonesia's Manufacturing PMI was in the expansionary category or above level 50. This then raised fears of massive layoffs in the manufacturing industry sector.

"I think PPKM is the main obstacle to increasing PMI, the choice must be stopped or the government provides continuous subsidies to all social layers to restrain the rate of economic decline," concluded Effnu Subianto.