Mitigating Pandemic-induced Employment Crisis

In order to avoid a prolonged labor crisis, the government, employers and workers must collaborate to solve the problem.

AP PHOTO/FAUZY CHANIAGO

A health worker in a hazmat suit disinfects Indonesian migrant workers who have recently returned from Malaysia on 9 April 2020 before they are admitted to quarantine at Soewondo Air Base in Medan, North Sumatra.

JAKARTA, KOMPAS – The Covid-19 pandemic continues to disrupt business activities and employment. As part of its crisis mitigation, the government has reminded employers and employees to build more conducive industrial relations. On the other hand, the government is also planning to expand its assistance for the majority of employers and workers in the informal sector as well as micro, small and medium enterprises (MSMEs).

According to data published by the Statistics Indonesia (BPS), 29.12 million workers, or 14.28 percent of the country’s working age population, have been affected by the pandemic as of August 2020. The majority of workers have experienced reduced working hours and wage cuts, and some have even lost their jobs.