JAKARTA - Coordinating Minister Airlangga Hartarto emphasized that the government has asked and directed all employers' associations to provide holiday allowances (THR) to their respective workers. This is done as the government's appreciation for the role of Indonesian workers.
“The government directs all employers' associations, such as APINDO and KADIN, to provide THR to their respective workers in this year's Eid. It is hoped that this THR will help the welfare of the community in 2022," said Airlangga at the "Opening of the National Working Meeting (Rakernas) of the Confederation of All Indonesian Trade Unions (KSPSI) and the X KSPSI Congress of 2022", in Jakarta, Wednesday, March 30.
Coordinating Minister for Economic Affairs Airlangga Hartarto appreciated the role of labor or workers in national economic growth.
According to Airlangga, workers contributed to making the Indonesian economy in 2021 even better with growth of 3.69 percent (yoy).
Airlangga Hartarto added that Indonesia's labor conditions had begun to recover. This is indicated by the decline in the unemployment rate from 7.07 percent (August 2020) to 6.49 percent (August 2021). The decline in unemployment was supported by increased employment during 2021 which reached 2.59 million.
On the other hand, the COVID-19 pandemic has accelerated the application of digital technology in Indonesia. This will affect various jobs and business sectors in the future. Many businesses are turning to digital technology, limiting workers and working hours, and avoiding direct contact. This shift has an impact on labor market conditions.
Based on the report of the World Economic Forum – Future of Jobs 2020, it is estimated that there are 85 million human jobs that will be replaced by machines and there will be 97 million new jobs involving humans, machines, and algorithms before 2025.
The International Labor Organization (ILO) also stated that in the second quarter of 2020, as many as 195 million workers had been replaced with accelerating changes.
Currently, Indonesia is also faced with the challenge of a demographic bonus, namely in 2030 it is estimated that the working age population will reach 201 million people or equivalent to 68.1 percent of the population.
In addition, data from the National Labor Force Survey (Sakernas) in August 2021, there were as many as 9.1 million unemployed people and 1.93 million new workers who needed work. This shows that more than 10 million people need work every year and this number can continue to increase from year to year.
"To anticipate this, the government has attempted structural reforms through the issuance of Law Number 11 of 2020 concerning Job Creation to encourage the creation of more and more inclusive employment opportunities," said Airlangga Hartarto.
The chairman of the Golkar Party emphasized that through the Job Creation Act, the government provides better protection for workers. Namely, through the improvement of labor policies that are more adaptive to changing times and flexibility of working hours in accordance with the agreement between employers and workers.
The government also continues to guarantee workers' rights, such as getting a decent wage, freedom of association, getting equal opportunities and treatment, and fulfilling severance pay when laid off.
In addition, the Government strengthens protection for workers with a Specific Time Work Agreement (PKWT) by regulating the provision of compensation to them when their contract period has ended.
Another breakthrough is the improvement of the National Social Security System (SJSN) by adding the Job Loss Insurance (JKP) program. The JKP program will provide protection for laid-off workers so that they can meet their daily needs, improve their competencies, and have the opportunity to find new jobs.
"This additional program will not increase the burden on workers because the contributions are borne by the government," explained Coordinating Minister Airlangga.
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The JKP program provides three benefits in the form of cash of 45 percent of wages for the first 3 months and 25 percent of wages for the next 3 months, job training, and access to labor market information. Through these three benefits, it is hoped that workers who have been laid off can re-enter the labor market.
The chairman of the Committee for the Handling of COVID-19 and the National Economic Recovery (KPCPEN) said the government also held the Pension Security (JHT) program.
The cash benefits received, for workers who retire with a salary of IDR 5 million per month and 10 years of service will reach IDR 133,587,781. With these benefits, workers will still receive protection when they enter a non-productive age and prevent poverty.
The government is also trying to improve the quality of workers, through the Pre-Employment Card program. This program is targeted at job seekers, laid off and furloughed workers, informal workers, and Indonesian migrant workers who need to increase their competence at work.
From 2020 to 2021, there were 11,440,629 people who received Pre-Employment Cards with the amount of incentives distributed by the government reaching IDR 27.48 trillion.
All of these efforts will be the driving force for improving the welfare of workers in Indonesia. The success of these efforts also cannot be separated from the role of Trade Unions/Labourers.
"The presence of the Trade/Labour Union will provide protection, defense of rights and interests, and improve proper welfare for workers/laborers and their family members," said Airlangga Hartarto.
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