12 Million Workers Should Receive Incentives for 6 Months If They Get Laid

REPUBLIKA.CO.ID, JAKARTA -- Chief Expert of the Presidential Staff Office, Fajar Dwi Wisnuwardhani said that the state is committed to continuing to safeguard the welfare of workers, including those affected by termination of employment (layoffs) through the Job Loss Guarantee (JKP) program.

Since it officially took effect on February 1, 2022, more than 12 million workers have registered and are eligible to become JKP participants.

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JKP is a mandate of Law No. 11 of 2020 on Job Creation, which has now been amended to Law No. 6 of 2023. To regulate the implementation, the government issued Government Regulation (PP) Number 37 of 2021 on the Implementation of the JKP Program.

Before the program, he said, workers affected by layoffs still did not get a social security scheme, potentially greatly affecting their welfare levels and even their employment levels.

“This is what prompted the government to create the new social security program, namely JKP,” Fajar said, quoted from KSP's press release on Thursday (2/5/2024).

Fajar also explained the benefits of JKP for workers affected by layoffs. First, workers will receive cash, with details of 45 per cent of wages for the first three months and 25 per cent of wages for the following three months.

Secondly, workers will have access to job market information and job training, both re-skilling and up-skilling.

“The goal is to maintain the life degrees of workers or laborers affected by layoffs and help workers re-access the job market,” Fajar said.

Although the government has set up social security schemes for workers or workers affected by layoffs, Fajar encourages companies to avoid layoffs and promote healthy industrial relations and mutual understanding.

According to data from the Ministry of Employment (Ministry of Employment), in the period January-February 2024, there were 7,694 domestic workers or workers who experienced termination of employment (layoffs). The most layoffs occurred in Jakarta with 3,652 people or 47.45 percent of the total workers affected by layoffs nationwide.

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