Ministry Of Finance Staff Call The Job Creation Law A Solution To Overcome The Increase In Unemployment In Indonesia

Illustrated (Irfan Meidianto / VOI)

JAKARTA - Special Staff to the Minister of Finance, Yustinus Prastowo, said that the Omnibus Law on Job Creation is one of the government's efforts to deal with the increase in the number of unemployed arising from the COVID-19 pandemic. It is hoped that this global sweeping law will encourage job creation.

As is known, the Central Statistics Agency (BPS) noted that the number of unemployed people in the August 2020 period had increased by 2.67 million people. That way, the number of unemployed in Indonesia reaches 9.77 million people.

"Because it is impossible to rely solely on government stimulus, therefore in our opinion the Job Creation Law is expected to be a cushion and strengthen the government to create jobs," he said, during a virtual discussion entitled 'Effects of Recession in the Middle of a Pandemic', Saturday, November 7.

In addition to making the Job Creation Law a cushion to encourage job creation, Yustinus said the government had also prepared three strategies to reduce the number of unemployed. First, dealing with health problems, second, namely social protection, and third with support for MSME actors.

Yustinus said, for social protection, the government continues to provide social assistance (bansos) to 40 percent of people who are vulnerable and affected by the pandemic. On the other hand, the stimulus for micro, small and medium enterprises (MSMEs) was also provided, one of which was through direct cash assistance of Rp. 2.4 million.

"To keep the purchasing power from going too deep, social assistance is given. Apart from that, there is also support for MSMEs," he said.

Furthermore, Yustinus said, job creation was also driven by the optimism of the middle class for the future national economic recovery. So it is hoped that the consumption of this class can further stretch the economy.

Yustinus did not deny that he admitted that the government was indeed at a loss in dealing with a pandemic when it first happened in Indonesia. As a result of the pandemic, the economy has taken a hit both domestically and globally.

Even so, he believes that Indonesia's economic conditions are currently in an improving trend. He said this was reflected in the smaller economic contraction in the third quarter of 2020, namely minus 3.49 percent, from minus 5.32 percent in the previous quarter.

"It is inevitable, the impact of COVID-19 has really hit the business world, many people have lost their jobs. So it is undeniable that there is an increase in the number of unemployed people, and also the number of poor people," he explained.