Jakarta – The government continues to strengthen the stability of the labor-intensive industrial sector through deregulation and protection of workers in order to prevent potential layoffs and maintain economic growth.
In the Economic Discussion, President Prabowo Subianto emphasized the need to simplify regulations to support labor-intensive industries such as textiles, footwear, food and beverages, and tobacco products which have been the mainstays of national job creation.
“Eliminate all unreasonable regulations, simplify all processes for entrepreneurs,” President Prabowo emphasized in his direction.
The labor-intensive industry is known to absorb around 14 percent of the total national workforce. However, this sector is facing global pressure that could impact around 50 thousand workers in the next three months.
As a concrete step, President Prabowo stated the government’s readiness to strengthen the employment social safety net by extending the duration of BPJS Ketenagakerjaan benefits.
“We have BPJS Ketenagakerjaan (BPJS TK) which can provide assistance that was previously three months, now it is six months. If there are workers who are abandoned, we will protect and help,” he said.
President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal revealed that there has been approval from President Prabowo to form a PHK Task Force (Satgas) as a form of government preparedness in facing the employment crisis situation.
“This step is a strong signal that the government together with labor unions will prevent policies that could have an impact on the workforce,” he continued.
The deregulation steps taken by the government have also received support from economic observers. Head of the Center for Macroeconomics and Finance INDEF Izal Taufikurahman assessed that the initiative was very strategic and encouraged its implementation to be carried out in a structured and directed manner.
“The government needs to conduct a comprehensive cross-sectoral regulatory audit, especially in labor-intensive sectors that absorb millions of workers such as the tobacco and food and beverage industries,” said Rizal.
He emphasized the importance of a proportional and data-based policy approach, especially in sensitive sectors such as tobacco, in order to maintain a balance between health aspects and national economic growth.
“The government can consider a more proportional and data-based policy approach for the tobacco sector,” he added.
Similar support was also conveyed by the Speaker of the Indonesian House of Representatives, Puan Maharani, who asked the government to immediately strengthen labor-intensive programs and retraining schemes for affected workers.
“There must be a labor-intensive program that is promoted, relocation or retraining for affected workers, and intensification of dialogue involving all stakeholders,” she concluded.
[ed
