Polemic Of Discontinuation Of Wage Subsidies, Which Said To Have No Effect On Increasing Purchasing Power

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The government has stopped the wage subsidy assistance program (BSU) or what is called a salary subsidy. This decision caused a polemic because the BSU program was deemed to be very much needed by workers because it was considered to be able to maintain purchasing power amid the pressure of the COVID-19 pandemic.

The Minister of Manpower Ida Fauziyah admitted that the BSU fund or salary subsidy this year has no allocation in the 2021 state budget (APBN).

"Meanwhile, BSU's 2021 APBN is not allocated. We will see how the next economic condition will be," he said in Medan, some time ago.

The salary subsidy assistance is given to workers or employees who have a salary of under IDR 5 million per month. Assistance is given in the amount of IDR 600 thousand per month for four months, or a total of IDR 2.4 million which will be given every two months. This means that in one disbursement, workers will receive a subsidy of Rp1.2 million.

The reason for the government not to continue with BSU

Special Staff to the Minister of Finance for Strategic Communications, Yustinus Prastowo, said the reason for wage subsidy assistance was not continued this year, because the government still needed data improvements.

"After going through a series of cabinet meetings and meetings it was decided that the wage subsidy assistance scheme, although it is good, is quite helpful, but for the time being we have decided not to continue because we need to improve the database," he said, in Jakarta, Wednesday, February 10.

Yustinus said that the government did not want this program to be continued, it would make people who were entitled to receive subsidized assistance not get it.

According to him, this decision is also in accordance with the recommendation from the Corruption Eradication Commission (KPK) which requests that this program be stopped first until the database is repaired.

Even so, he denied that this assistance program was still possible to be continued in the future. Moreover, according to him the national economic recovery program (PEN) is dynamic. However, to continue this requires good data.

The labor union asked for the wage subsidy to be continued

The Confederation of Indonesian Workers Unions (KSPI) asked President Joko Widodo (Jokowi) to continue with Wage Subsidy Assistance (BSU) or salary subsidies by including his budget in the 2021 state budget (APBN).

The President of KSPI Said Iqbal said that the purchasing power of workers had greatly decreased amidst the threat of an explosion of layoffs and the COVID-19 pandemic. Because of that, KSPI asked BSU to continue because it could maintain purchasing power.

"We ask the President, the leadership of the DPR, the BSU to remain there because he maintains purchasing power. Input it if it is not in the 2021 APBN, later in the 2021 APBN amendments," he said, in a virtual press conference, Wednesday, February 10.

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Iqbal also asked for the promises of Jokowi's ministers who previously confirmed that BSU would continue in 2021. However, in reality the budget for BSU was not included in the 2021 State Budget.

"Now the BSU has been eliminated. Where have the Menaker been? Why can't you convince Commission IX, what does the Minister of Man do? Previously, Pak Erick Thohir promised the Minister of BUMN, Mrs. Sri Mulyani the Minister of Finance and Mrs. Ida Fauziyah the Minister of Manpower, in 2021 there will still be wage subsidy assistance. - Why don't you enter the 2021 State Budget ?, "he said.

Regarding the statement that this BSU was included in the Pre-employment Card program, Iqbal said that this was just a trick of the government. This is because the BSU budget is not included in the 2021 State Budget.

"The Menaker said don't be afraid that there are still other forms. It is impossible in the 2021 BSU State Budget, where do you want to take it from your personal pocket. He said that the Pre-Work Card is Rp3.5 million, the Pre-Work Card is for unemployed people. BSU for people who work, the time cannot be different. Never mind, "he said.

BSU is still very much needed

Institute for Development of Economics and Finance (INDEF) economist Enny Sri Hartati questioned the government's move to stop this BSU. This is because wage subsidies are far more effective in being able to boost people's purchasing power compared to the Pre-Work Card program, which will be continued in 2021.

Enny said, BSU directly targets the public from the total budget that has been disbursed, namely Rp.29.4 trillion in 2020. He said on the Pre-employment Card, the total assistance he received was IDR 3.55 million.

However, when it is broken down, it is IDR 600 thousand for training costs per month for four months or a total of IDR 2.4 million and IDR 1 million as incentives for training costs, and IDR 150 thousand as survey costs.

"So when compared, if the objectives are both to provide support as semi-social assistance, then it is much more effective, roughly the multiplier effect on the purchasing power of employees must be large," he said, in the event 'Sapa Indonesia Malam Kompas Tv'. , Wednesday, February 10.

Meanwhile, Economist Bhima Yudhistira assessed that the wage subsidy policy for workers, which has been running in 2020, needs to be continued in 2021. In fact, the amount of the subsidy should be increased.

"It is better if wage subsidies for workers are increased, not eliminated," said the researcher at the Institute for Development of Economics and Finance (Indef) in a written statement in Jakarta, Saturday, February 6, 2021.

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