Pressing Unemployment Rate, PUPR Opens 700 Thousand Jobs In 2021

Illustration of economic growth (aerial photo of Jakarta)

JAKARTA - The government has prepared several programs to reduce the rate of poverty and unemployment in 2021. One of them is through the Cash Work Intensive Program under the Ministry of Public Works and Public Housing (PUPR).

Where in 2021, President Joko Widodo is targeting a reduction in the unemployment rate at the level of 7.7 to 9.1 percent. Meanwhile, the poverty rate is in the range of 9.2 to 9.7 percent.

PUPR Minister Basuki Hadimuljono said that in order to reduce poverty and unemployment, the PUPR Ministry will allocate IDR 12 trillion in funds to provide 700 thousand jobs in the cash-intensive program. This fund allocation is an increase of Rp. 700 billion from the previous budget in 2020, which is Rp. 11.3 trillion to absorb 605 thousand workers.

"In 2021, the cash for work program will be allocated Rp. 12 trillion for around 700 thousand jobs," in a press conference on the Financial Notes and 2021 State Budget Bill, Friday, August 14.

On the same occasion, Minister of National Development Planning / Head of Bappenas, Suharso Monoarfa, believes that the cash for work program owned by PUPR can minimize the growth in poverty and unemployment due to the COVID-19 pandemic.

"Earlier, PUPR has conveyed an increase in the budget in order to create employment opportunities. Given the availability of cash-intensive jobs at PUPR or the Ministry of Health, we hope that job opportunities will also be created," said Suharso.

Suharso said the government would still reduce the poverty rate in the range of single digits, without increasing the number of unemployed. He said, currently the unemployment rate is quite large due to layoffs (PHK) and employees who were laid off.

Previously, President Joko Widodo said, next year's unemployment percentage is projected to be in the range of 7.7 percent to 9.1 percent. Meanwhile, the percentage of poverty is estimated at 9.2 percent to 9.7 percent.

"By emphasizing the reduction of extreme poverty, the level of inequality in the range of 0.377-0.379, and the human quality development index (HDI) in the range of 72.78-72.95," he said, while giving a speech in the context of delivering the introduction / statement of the government to the draft law. Regarding the 2021 State Budget and its Financial Notes at the MPR / DPR / DPD Building, Jakarta, Friday, August 14.

Jokowi hopes that this target can be achieved with the 2021 RAPBN which is directed at accelerating the national economic recovery due to the COVID-19 pandemic. This is because the crisis that arose due to the pandemic has caused an increase in the poverty rate and the unemployment rate in the country.

"Encouraging structural reforms to increase productivity, innovation and economic competitiveness. Then, accelerate economic transformation to the digital era, and fourth, use and anticipate demographic changes," he said.