Manpower Minister: Unemployment Number Rises to 6.9 Million

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah revealed that the COVID-19 pandemic increases the country’s unemployment number to 6.9 million people. Of the total figure, 3.5 million were laid-off workers.

“In fact, there is a hike of 2.9 million new working-age population every year. So the total unemployment number in 2020 alone hits nearly 10 million,” said Ida in a written statement via the ministry’s official site kemnaker.go.id on Tuesday, October 13, 2020.

The rising number of unemployment, Ida added, was one of the reasons for the government to issue the Omnibus Law on Job Creation. The new policy provides ease of doing business.

“For example, in establishing MSMEs (micro, small, medium enterprises) only requires registration, no need for a business permit so it will not take a long time and cost much. Also, establishing a cooperative only needs five people. Requirements to open up a company are also simplified, it just needs one person. Thus, MSMEs can be a legal entity and bankable so they can obtain credit,” Ida explained.

She went on to say that the business capabilities in Indonesia were not the same as there are big, medium, and small enterprises. So if the severance pay is set too high, the wages are high, and the working hours are rigid, those enterprises will be difficult to grow.

“That is why we develop a regulation that reflects solidarity for small industries, namely Job Creation Law,” the Manpower Minister remarked.

Ida Fauziyah said the ministry has never stopped to disseminate the Omnibus Law. Today, she held a virtual meeting with 70 representatives of labor unions and entrepreneurs, who are participants in a training event on negotiation skills for industrial relations in Yogyakarta.

Read: Indonesian Chamber of Commerce Projects 40% Income Decline due to Covid-19

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