Airlangga: In The Job Creation Law, Victims Of Layoffs Due To COVID-19 Will Get Cash

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Twitter @airlangga_hrt)

JAKARTA - The People's Representative Council (DPR) and the government have just passed the Job Creation Bill (RUU) into Law. Even though it received rejection from the people, this broomstick law was still passed and the government believed it would bring many benefits to the Indonesian economy.

Coordinating Minister for the Economy Airlangga Hartarto said the COVID-19 pandemic not only had a major impact on the economy, but also required the government to create a new protection scheme for Indonesian workers.

"This protection scheme is a job loss guarantee program (JKP) that provides benefits (for workers or laborers)," he said, in a plenary session, at the DPR Building, Parliament Complex, Senayan, Monday, October 5.

Airlangga explained that the scheme was contained in the Job Creation Law which was recently passed. This scheme, he said, could protect workers or laborers who lost their jobs due to the COVID-19 pandemic.

"JKP provides benefits, namely cash and training for upgrading and reskilling , access to information for the labor market. Thus, those who experience layoffs are protected for a certain period while looking for new, more suitable jobs," he said.

As is known, due to the pressure of the COVID-19 pandemic, many employers have gone out of business and are forced to terminate their employees.

"The state is present to provide severance pay through JPK by involving BPJS Ketenagakerjaan. The government contributes to strengthening funds managed by BPJS Ketenagakerjaan," he said.

Airlangga also emphasized that the Job Loss Security (JKP) program does not reduce the benefits of Work Accident Security (JKK), Death Security (JKm), Old Age Security (JHT), and Pension Security (JP).

"That does not increase the burden of contributions from workers or employers," he said.