VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

President Joko Widodo (Jokowi) launched monthly wage subsidy assistance of Rp600 thousand to be disbursed for a four-month period to 15.7 million workers drawing a salary of below Rp5 million a month.

During the launch of the cash assistance-based incentive at the State Palace, Jakarta, Thursday, President Jokowi revealed that the salary subsidy will initially be distributed to 2.5 million workers and thereafter gradually dispensed to the other 15.7 million formal workers. The stage-wise distribution of aid will be conducted until the end of September 2020.

Salary subsidies are distributed via bank transfer every two months, under the first stage, for a period of four months. Thus, in the first stage, salary subsidy assistance of Rp1.2 million was distributed, while the rest will be disbursed over the next two months.

"Today, I think workers, who receive wage subsidy assistance, include honorary teachers, honorary firefighters, honorary hotel employees, and nurse medical personnel, what else? There are cleaners, hotel employees, and others. Those actively paying the Workers Social Security Agency (BPJS Ketenagakerjaan) fees will be offered wage subsidy assistance," President Jokowi remarked.

Attendees at the launch also comprised Coordinating Minister for Economy Affairs Airlangga Hartarto, State-Owned Enterprises Minister Erick Thohir, and Minister of Manpower Ida Fauziyah.

One of the criteria for receiving subsidized wages are workers, who are active participants in BPJS Ketenagakerjaan and are diligent about paying contributions.

President Jokowi is optimistic that this salary subsidy assistance would be able to encourage public consumption.

"We are upbeat that, once again, household consumption will not be disturbed, and the people's purchasing power will increase. We are optimistic that our country's economic growth would return to normal," President Jokowi stated.

The head of state remarked that this salary subsidy assistance is a series of aid that the government provides to the community to placate the social and economic burden of the COVID-19 pandemic.

Prior to the distribution of this salary subsidy assistance, the government has distributed productive assistance of Rp2.4 million for micro and small businesses, social cash assistance of Rp600 thousand per month, direct cash assistance (BLT) for village funds of Rp600 thousand per month, free electricity tariffs for 450-VA household consumers, and assistance through the provision of basic food cards and pre-employment cards for employees affected by the termination of employment (PHK).

"Today, we will complete the additional assistance in the form of wage subsidy assistance of Rp600 thousand per month that will be given for four months to 15.7 million workers," he added. (ANTARA)