Indonesian government officially launched the pre-employment card for young unemployments, said the senior minister on Friday (03/19) - Photo by CMEA Office

JAKARTA (TheInsiderStories) – Indonesian government officially launched the pre employment card for young job seekers, said the senior minister on Friday (03/19). In 2020 State Budget, President Joko Widodo administrations has prepared Rp10 trillion (US$645.16 million) for the new stimulus package.

The pre employment card are part of the President Joko Widodo promised during the election to reduce the idle citizens. Coordinating minister for the economy, Airlangga Hartarto stated, the government targeting the incentives delivers to job seekers with aged between 18 to 24 years. At present there are around seven million jobless and 3.7 million is young generations , he adds.

“This pre employment card is synonymous with guaranteed job loss after the application of a omnibus law for job creation in the form of unemployment benefit,” he told reporters in a video conference today.

The government partnering with digital company and payment platforms such as Bukalapak, Tokopedia, OVO, Haruka EDU, Sekolah.mu, Sisnaker, P Telkom Indonesia Tbk (IDX: TLKM), Link Aja, and PT Bank Negara Indonesia Tbk (IDX: BBNI) to run the program. Executive director of management of the work card, Denni Puspa Purbasari explained, the government provides training costs of up to Rp7 million per person through the card. 

Earlier, minister of finance, Sri Mulyani Indrawati, added, the target of pre-work card recipients as many as two million participants in a limited period.

In today’ limited meeting, President Widodo also urged the ministers and regional leaders to refocusing and reallocates the government expenditure for health especially controlling the COVID-19 outbreak, enlarge the social safety net to boost the purchasing power through various programs, including work card also economic incentives for small medium and micro enterprises and the informal sectors.

Now, the government is finalizing more stimulus policy to reduce the impact of the coronavirus outbreak on the domestic economy. So far, the government has announced fiscal stimulus worth of Rp147.90 trillion. In detail, the nation prepared fiscal incentives Rp22.90 trillion and widening 2020 State Budget deficit Rp125 trillion.

“In total, we spent around Rp158.1 trillion from the relaxation Rp22.9 trillion, widening deficit of Rp125 trillion and first package Rp10.2 trillion,” said Hartarto on March 13.

The government also prepared non-fiscal stimulus is related to the simplification of the ban on export certificates, legal fees and procedural for exporters and importers.

While, Indrawati stated, in response to the development of COVID-19 on Indonesia’ economy will continue to responds to the effects. She stated, “We cannot eliminate the impact but can minimize it. The second focus is on the production sector affected by the pandemic, especially manufacturing which is prevented from getting capital goods and exporters.”

The big picture, from the state budget side, the deficit will increase 2.5 percent of gross domestic products (GDP) or provide a stimulus of 0.8 percent of GDP or worth of Rp120 trillion in values. He adds, “If yesterday it increased purchasing power this time to support the industry’ cash flow.”

US$1: Rp15,500

Written by Staff Editor, Email: theinsiderstories@gmail.com