Jakarta, CNBC Indonesia – The government responded to the wave of layoffs (PHK) that occurred mainly in industrial sectors with a lot of work such as textiles, clothing, and shoes by implementing a limited ban (lartas) and planning for bank credit restructuring.
nonetheless, according to economists it is not enough. The government should focus more on providing facilities for labor intensive investment and impose tax breaks.
“The government needs to continue to promote economic growth, it’s as simple as that, with positive economic growth, investment increases, then job creation will definitely happen, there is nothing else that can be done. Indeed, the government should focus more . on providing convenience for solid investment. jobs,” said Core Indonesia Research Director Piter Abdullah to CNBC Indonesia, Monday (7/11/22).
The same was conveyed by the Executive Director of the Institute for Economic Development and Finance (Indef) Tauhid Ahmad. According to him, another step that needs to be taken is tax relief.
“The government has reduced its corporate income tax or it has been reduced for the industrial sectors that have been affected or that have been put in general, so they also have relaxation for their taxation to increase their financial capacity to develop their business. others,” he told CNBC Indonesia.
Tauhid also added that related to the recent wave of layoffs, the government must be ready with Job Loss Insurance (JKP) to ensure workers can still meet their daily needs.
“Inevitably, if the layoffs happen, the government must prepare with JKP at least to support the workers so that they do not lose their economic resources,” he explained.
Previously, the Coordinating Minister for Economy Airlangga Hartarto said his party would coordinate with the Financial Services Authority (OJK) to pay attention to certain sectors to implement bank credit restructuring.
“KSKSK and OJK discuss credit restructuring. The extension does not apply to all sectors, the characteristics of each sector are different. We will pay attention to certain sectors that we can always pay attention to,” he said.
Industry Minister Agus Gumiwang said that in order to protect the textile industry, tariffs for imported products will be applied in this sector so that there is a balance between the upstream and downstream sectors.
“Lartas can be our weapons, our instruments, we see that in this textile sector there must be harmonization between upstream and downstream, we must take the right policies, do not let the lartas in upstream affect downstream and intermediate performance. slowing down and negative sectors can be maintained,” he said in his presentation to the media.
Signs of mass layoffs are detected, workers are starting to take precautions!