Government Must Anticipate Unemployment Surge If Emergency PPKM Is Extended

DPD RI Chairman LaNyalla M Mattaliti (Photo: DPD RI Public Relations)

JAKARTA - Coordinating Minister for Human Development and Culture, Muhadjir Effendy, said the government would extend the Emergency Restrictions on Community Activities (PPKM). However, the government will still carry out various evaluations before deciding on the extension period.

Emergency PPKM was initially implemented in Java-Bali on 3-20 July 2021. Then, the Government also implemented the same policy in 15 other regions, outside Java and Bali.

Regarding this, the Chairman of the Regional Representative Council of the Republic of Indonesia, I La Nyalla Mahmud Mattalitti, asked the government to anticipate a spike in the unemployment rate if the Emergency PPKM was extended.

"Emergency PPKM has made several jobs and businesses worse off. This should be a concern for the government because the potential for an increase in unemployment is very possible. This potential must be anticipated properly so that there are no follow-up impacts that will harm the country", said La Nyalla in a statement, Tuesday, July 20.

This senator from East Java explained, based on data from the Central Statistics Agency (BPS) for the period August 2020, the number of unemployed people increased by 2.67 million people. Thus, the number of unemployed workers in Indonesia since the beginning of the pandemic has reached 9.77 million people. La Nyalla estimates that this number has increased.

"The BPS data is data before the massive surge in Corona cases that made the government decide to implement Emergency PPKM. One of the problems that will be faced due to Emergency PPKM, I estimate, is the problem of increasing unemployment", he explained.

La Nyalla understands the government's decision to implement Emergency PPKM following the daily number of COVID-19 cases reaching 50 thousand per day. However, he said, the policy had an impact on the community's economy.

For example, the closure of malls puts many workers in the sector out of work. There have been layoffs of employees in North Sumatra, as many as 7,000 mall employees have been laid off. Meanwhile, in East Java, the Indonesian Shopping Center Management Association (APPBI) said that hundreds of thousands of mall employees had to be laid off.

In addition, the impact is also felt by cinema employees and workers in the creative economy tourism economy. The Indonesian Cinema Management Association (GPBSI) revealed that around 10,175 employees were affected by the cinema closure policy.

Then, entrepreneurs who are members of the Indonesian Hotel and Restaurant Association (PHRI) have also asked for attention from the government because hotel and restaurant employees are greatly affected by Emergency PPKM.

"There are also many friends from among the workers who have been forced to stay home as a result of the Emergency PPKM. Moreover, if the period of implementation is extended, more workers will lose their jobs, especially workers in non-essential and critical sectors", said La Nyalla.

Therefore, the former General Chairperson of PSSI advised the government to immediately conduct an evaluation related to the implementation of Emergency PPKM. Regional Representative Council of the Republic of Indonesia, he said, will support whatever the decision is, whether the Emergency PPKM is extended or not.

"Because we believe the government's decision has gone through careful consideration and study. But I advise that the decisions taken later must be well communicated so as not to cause controversy", said La Nyalla.