Apindo Slams Govt Pandemic Subsidies, Argues It 'Weakens' Productivity



Laila Afifa

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  • Hariyadi Sukamdani. TEMPO/Candrika Radita Putri

    Hariyadi Sukamdani. TEMPO/Candrika Radita Putri

    TEMPO.CO, JakartaThe Indonesian Employers Association (Apindo) chairperson, Hariyadi Sukamdani, on Thursday questioned the government subsidies robustly distributed during the COVID-19 pandemic which he argues may weaken the country’s productivity. Sukamdani maintained that the government should actually encourage its people to be independent.

    “Granting subsidies means it is a form of weakening from the state in the attempt to awaken the country’s productivity,” said Hariyadi at the Menara Kadin Indonesia on Thursday, October 15. 

    He noted that 40 percent of Indonesia’s 98.6 million population had received subsidies and that it would pose a threat to future economic power.

    “If this continues to happen we will not be able to enjoy the demographic bonus but rather will have to face demographic burden,” he asserted.

    The Apindo chair also defended that the job creation law aims to broaden job opportunities in a massive way through the ease of investments. According to Hariyadi, the omnibus law is essential for Indonesia to be able to face the 2030 demographic bonus. 

    He then urged the government, businesses, and economists to better disseminate the generally-controversial law to the public.