REPUBLIKA.CO.ID, JAKARTA -- An economic observer has expressed hope that the new government will encourage labor-intensive programs to increase people's purchasing power.

"The programs could become part of the government's efforts to increase the purchasing power of the people. The government is expected to increase labor-intensive projects to assure income for informal workers," Aviliani, economic observer from the Institute for Development of Economics and Finance (Indef), said here on Monday.

Jakarta Governor Joko "Jokowi" Widodo and Jusuf Kalla will replace incumbent President Susilo Bambang Yudhoyono and Vice President Budiono in October this year following their victory in the election on July 9.

Aviliani noted that labor-intensive projects could also provide economic resilience to people in the middle- and low-income brackets and bridge social gap in the community.

"The important factor is continuation of employment. The labor-intensive programs must be implemented," she stressed while citing Bandung Mayor Ridwan Kamil's program as an example.

Aviliani stated that in connection with the planned increase of fuel price, the government must focus on boosting labor-intensive projects instead of capital-intensive.

She said labor-intensive projects will help Indonesian people, especially those with mere elementary school background and possessing not many skills.

She claimed that least 60 million people worked as laborers and had no skills. Their capacity must be increased so that they could still work, she pointed out.

She noted that the major goal of the programs was to help the poor, and the programs were considered suitable to reduce unemployment in the country.

"The programs were very popular during the era of former president Soeharto. Its good value needs to be taken up by the present and next governments," she added.

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