Coordinating Minister Airlangga: Government Prepares Incentives For The Labor Intensive Sector To Prevent Layoffs

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for the Economy Airlangga Hartarto said that the government is preparing incentives for labor-intensive sectors to prevent termination of employment (PHK) amid a decrease in the number of middle class and people's purchasing power.

"One of the things to prevent layoffs, of course, the government will pay attention to policies that will be taken, especially in the next one to two months. The government is preparing incentives that can be encouraged in the labor-intensive sector," said Airlangga Hartarto, in Jakarta, quoted from Antara, Wednesday 6 November.

He said that labor-intensive industries have a number of criteria according to the Ministry of Industry and the Ministry of Manpower, including the textile sector, the children's toy sector, as well as the food and beverage sector with more than 200 workers.

One of the incentives that will be given, he said, is an investment credit incentive so that business actors in these sectors can buy machines with more efficient operations and larger output per unit.

"However, this (incentive) is entirely a medium-term effort, because the short-term effort is in the fourth quarter related to increasing purchasing power with programs that will later be prepared by the government," he said.

Airlangga also explained a number of government efforts to accelerate economic growth in the fourth quarter of 2024 with a focus on maintaining people's purchasing power.

He said that the government had extended a number of fiscal incentives, such as the Government Borne Sales Tax (PPN DTP) for property and Sales Tax on Government-borne Luxury Goods (PPnBM DTP) for automotive purposes, as well as increasing the quota for Housing Financing Liquidity Facilities (FLPP).

The government is also preparing to improve the use of Job Loss Guarantee (JKP), utilize Work Accident Insurance (JKK) funds, and encourage entrepreneurship through People's Business Credit (KUR).

Airlangga stated that the government will also continue to encourage increased added value of natural resources (SDA) and implementation of downstreaming, completion of national strategic projects, development of industrial estates and Special Economic Zones, as well as providing tax holiday incentives.

"So it is hoped that with this the investment climate will get better," he said again.

In addition to the various incentives above, the government also provides book-anleting and deleting facilities for bad credit collection for farmers, fishermen, and MSME players.

President Prabowo Subianto signed Government Regulation (PP) Number 47 of 2024 concerning the Elimination of Congested Receivables to MSMEs in agriculture, plantations, livestock, and marine sectors as well as other MSMEs.

The PP was signed by President Prabowo at the Merdeka Palace, Jakarta, Tuesday afternoon, witnessed by a number of officials from related ministries and institutions as well as a number of MSME entrepreneur associations.

"With this, the government hopes to help our brothers and sisters, producers who work in the agriculture sector of MSMEs and fishermen who are very important food producers, they can continue their efforts and be more efficient," said President Prabowo.