The Pandemic Affects Indonesia's Economy, The Ministry Of National Development Planning: Triggering A Shift In The Composition Of The Workforce

A number of employees walk on Jl Jenderal Sudirman, Jakarta in April 2020 (Antara/Akbar NG)

JAKARTA - Expert Staff to the Minister for Social Affairs and Poverty Reduction of the Ministry of National Development Planning/Bappenas Vivi Yulaswati said the presence of the COVID-19 pandemic caused a shift in the composition of the workforce in many work sectors.

Vivi conveyed this in a discussion entitled 'Tripartite: Inclusive Recovery Strategy during the COVID-19 Pandemic' which was followed online in Jakarta, Wednesday 20 April.

"In general, Indonesia is really affected by the economy. It contracted quite deeply to minus 5, but with the passage of time, various programs and efforts made, we are back on track in the range of 5," he said.

Vivi said, although the country's economy began to recover gradually. However, it is not easy to revive it as before because there are still several provinces whose economy has not returned to normal.

As a result, the number of unemployed increases not only in the low-educated group. But also people who have completed their education at the university level.

This then has an impact on the shift in the composition of the workforce from the tertiary sector such as services, to the primary sector such as agriculture and mining, which is indicated by changes in the composition of the workforce.

"It experienced a reduction because we know that with the PSBB and also other limitations, restrictions in various regions, of course many do not work or experience a reduction in working hours," said Vivi.

According to Vivi, the shift in employment is due to the primary sectors such as agriculture, forestry, fisheries and mining being relatively less contact-intensive and informal compared to the service sector.

So that workers can easily enter because they can still run and be adaptive, with dynamic changes to the regulations set by the government during the COVID-19 pandemic.

Vivi also added that apart from shifts in the work sector, data from Bappenas showed a decrease in working hours and income in each particular sector of work. As is the case in the transportation sector, providers of accommodation and food and drink or wholesale and retail trade.

Therefore, he suggested that the government continue to transform the country's economic structure because the primary sector has relatively low added value and a short supply chain, while focusing on increasing the productivity of Indonesian workers.

"That is why the next recovery strategy needs to be focused on increasing labor productivity," he said.