Airlangga Reveals Incentives For Job Loss Guarantee Programs Will Be Increased

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Aris Nurjani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would increase the incentives for the Job Loss Guarantee (JKP) program in BPJS Ketenagakerjaan together such as the Pre-Employment Card program.

"We ask for the JKP training incentive to be adjusted to the Pre-Employment. Now the Pre-Employment is around Rp. 3.5 million while the JKP training is lower than that. So the JKP will be increased," he explained after the Pre-Employment alumni Meeting, Thursday, October 3.

Airlangga said that the JKP incentives would be prepared from funds amounting to Rp1.2 trillion, where the utilization was still very small and not in accordance with some in the community.

"JKP incentives will be prepared from funds of around 1.2 trillion, the utilization is still very small. It is not in accordance with what is conveyed in the community, because the number of layoffs registered in the service is relatively lower than those submitted in the community," he said.

Therefore, Airlangga said that the cost of job training obtained would be increased from Rp. 1 million to Rp. 2.4 million.

However, Airlangga conveyed that the incentives raised were only for the temporary JKP program for the pre-employment program.

"No (pre-employment incentives are not increased). JKP is being increased," he explained.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would revise the rules for the Job Loss Guarantee (JKP) program in BPJS Ketenagakerjaan.

Airlangga explained that the JKP policy would be revised so that the coverage could be wider so that contract workers could get this program if they lost their jobs. In addition, the revision will also increase benefits from JKP.

"Regarding the Job Loss Guarantee policy in BPJS Ketenagakerjaan, it will be revised, so that those who are eligible and can get job loss guarantees can be increased," said Airlangga after the cabinet meeting at IKN, Friday, September 13.

Therefore, Airlangga added that the victims of layoffs who meet the requirements for obtaining JKP will receive cash with a calculation of 45 percent of the wages (maximum Rp. 5 million) for the previous six months, 45 percent of which were only received for the first three months. Meanwhile, in the fourth to sixth months, 25 percent of the wages were received.

So the calculation will be (45 percent x wage x 3 months) + (45 percent x wage x 3 months). Whereas previously, the calculation was (45 percent x wage x 3 months) + (25 percent x wage x 3 months).

"The profit of losing his job, which is usually 45 percent 3 months and 25 percent 3 months later, is equal to 45 percent," he explained.

Airlangga ensured that those who would benefit from JKP were not only permanent employees but workers with a Specific Time Work Agreement (PKWT) or before the expiration of the contract could benefit.

"So with the improvement of improvements, we also ask those who PKWT can take JKP. So that the criteria for this will be expanded again. PP (Government Regulations) and the Minister of Manpower will be prepared," he said.