KSPI President Said Iqbal Calls Wage Subsidy Implementation Not Right On Target: Workers In Jabodetabek Will Not Get Allotments

KSPI President Said Iqbal. (Photo: Doc. Antara)

JAKARTA - The President of the Labor Party who is also the President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal views that the wage subsidy program policy is not on target. In fact, according to him, tends to be discriminatory.

As is known, the government plans to provide wage subsidies to workers whose salaries are below Rp. 3.5 million in the amount of Rp. 1 million. Where this wage subsidy will be given to 8.8 million workers.

"If the wage subsidy is only given to workers who receive wages of IDR 3.5 million and below, it means that this policy will only be enjoyed by workers outside big cities or industrial cities," he said in an official statement, Thursday, April 7.

In fact, said Iqbal, those who are most affected by the COVID-19 pandemic and the increase in the price of goods are workers who work in industrial cities. However, because they already received wages above IDR 3.5 million, they did not receive the wage subsidy.

"So who is this program really for? We see that the recipients of this wage subsidy program are not on target," he explained.

Basically, Iqbal explained, his party agreed with the wage subsidy program. Because, indeed, the KSPI has proposed this program since April 2021. However, what workers are currently arguing about is related to the recipients of the program.

"If the recipients of the wage subsidy are workers whose wages are below IDR 3.5 million, it is only obtained for workers in areas with less industry," he said.

For example, Pacitan and Boyolali where there are not many industries. Meanwhile, workers who work in Greater Jakarta, Surabaya, Gresik, Pasuruan, Mojokerto, and Pasuruan will not receive a wage subsidy.

In this regard, Said Iqbal requested that the wage subsidy be implemented for all workers, both those who are BPJS Employment participants and those who are not BPJS Employment participants. Do not only be limited to workers who are registered in the Social Security Agency (BPJS) Employment membership.

"Indonesian people are the same. Don't make discriminatory policies. If there are workers who don't participate in BPJS, it's the entrepreneur who doesn't register the workers as BPJS participants. So it's unfair if they aren't given a wage subsidy for something that is not their fault," he said.

Second, the recipients of the wage subsidy are workers who are paid the minimum wage in their area.

"In Bekasi Regency, the minimum wage is IDR 4.79 million. So, with the wage subsidy scheme, workers who get the minimum wage, workers in Bekasi and other industrial cities will also get wage subsidies," he said.

Then, continued Iqbal, with this scheme, of course there will be a spike in the recipients of the wage subsidy. Therefore, the government must adjust the necessary budget so that it is sufficient.

"The point is, don't let this good program lead to policies that are discriminatory and unfair to the workers," he said.