TEMPO.CO, Jakarta - From January to November last year, 919,071 people lost their jobs due to layoffs, the Indonesian Employers' Association (APINDO) said. The data is based on the number of unemployment claims filed to the workers' social security agency, BPJS Ketenagakerjaan.

"The mass layoffs were an impact of the Covid-19 pandemic, which some companies are still reeling from," APINDO chairman Hariyadi B Sukamdani said in an online press conference on the Job Creation Perpu, Tuesday, January 3.

Another factor, he said, was the decline in export performances. "The mass layoffs were also an indirect result of the provincial minimum wage hike, which forced companies to downsize," he added.

To prevent layoffs from spreading further, Finance Minister Sri Mulyani said her department will utilize this year's remaining fiscal space. She said that there is still an ample amount of the state's spending budget that can be allocated for November and December 2022.

"The allocation of state expenditure is expected to rise considerably during the last two months of 2022. This will surely boost the economy's ability to withstand turbulence," Sri said.

The minister said there was still around Rp1,200 trillion left of state spending as of November 2022, which will be used to provide social assistance whether in the form of wage subsidies or other social aid programs, to act as a social buffer for the public.

"We will see how much space we have left to accelerate [spending] for social assistance programs," Sri said.

In addition, the State Budget will also be directed toward stimulating the business climate for various industrial sectors. The stimulus policies, she said, will still refer to plans included in the national economic recovery program (PEN), such as reviving the tourism and manufacturing sectors.

Maria Arimbi Haryas Prabawanti | Antara | SWA.co.id | Translator: Imaji Lasahido | RR

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