Coordinating Minister for Economic Affairs Airlangga Hartarto said the central and regional government budget would be encouraged to absorb domestic products in order to prevent risks from potential layoffs (PHK) in the short term.
"To prevent risks rather than potential short-term layoffs, the government will push for a central and regional budget for the use of domestic products," Airlangga said in a press conference quoted by Antara, Monday, January 16.
In order to prevent potential layoffs in the medium term, the government will encourage structural changes in upstream and downstream industries, through improving supply chains, Human Resources (HR), conducting research and development, and facilitating market access.
"This includes accelerating the completion of a comprehensive economic cooperation agreement (CEPA), including CEPA with Europe and several other non-traditional export markets," he added.
The government will also optimize central and local government spending for labor-intensive programs both in cities and villages.
"Government to government cooperation will also be expanded to migrant worker programs," he said.
The financial inclusion will also be increased through the Madani National Capital (PNM) and People's Business Credit (KUR).
"Worker expertise will also continue to be improved with upskilling and reskilling programs such as pre-work card programs," he said.
He added that in the future the government will revise Government Regulation (PP) Number 1 of 2019 concerning Export Result Foreign Exchange from Business Activities, Management, and/or Natural Resources Processing.
"Especially with the Law on the Development and Strengthening of the Financial Sector (UU P2SK) which has authorized Bank Indonesia (BI) to regulate foreign exchange traffic," he said.
In the revision that is being finalized by Bank Indonesia and the Ministry of Finance, domestic foreign exchange reserves can come from exports of manufactured products or downstreaming of Natural Resources (SDA).
"The investment credit and working capital credit, especially to encourage downstreaming can be carried out, also continue to ensure its availability. This is to ensure that the manufacturing sector can be encouraged by domestic banks," he said.
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