Ari Kuncoro, Hot Economy One TV News: Beware of Unemployment Explosion
Nino Eka Putra ~ PR of FEB UI
DEPOK – (6/11/2020) The Minister of Finance of the Republic of Indonesia, Sri Mulyani, said that the government will use various instruments to reduce unemployment, especially in August 2020 where the number of unemployed increased compared to August 2019. Then, how can the government be aware of the increase in unemployment due to the Covid-19 pandemic? Is it caused by the pandemic, or digitalization?
The Rector of Universitas of Indonesia, Professor Ari Kuncoro explained, “What is happening right now, the middle class is worried about being exposed to Covid-19. As a result, they hold back purchases of household products, durable goods, and stop traveling long distances. In order for the economy to revive, it is necessary to guarantee a sense of security for the middle class to carry out transactions as before the pandemic.” Ari conveyed in the Hot Economy News One TV program “Beware of Unemployment Explosion,” on Friday (6/11/2020).
To reduce the number of people exposed to Covid-19, the government must issue fiscal instruments that provide incentives. The government’s pandemic prevention efforts through the deployment of apparatus, such as patrols or outreach to the streets or the community, are to monitor their behavior as social beings.
If vaccines already exist, the price must be controlled, because the externalities are very extensive and can have positive effects, both on society and industry. In essence, we are instilling that the Covid-19 vaccine is something that must be taken for your own safety at an affordable price, or assisted by subsidies.
According to Ari, the workforce in Indonesia, especially vocational schools (SMK) graduates, should have the expertise to develop the industry. But what has happened so far is that they are at a crossroads or are working in other fields that are not their expertise, such as working in a shop or supermarket. Most new industries employ very few SMK graduates.
SMK has a linkage or supply chain that can work with MSMEs to produce non-precision nuts, bolts, and spare parts. However, the problem is that MSMEs must obtain intricate and complicated licenses. As a result, nothing has been formed. This is a phenomenon in Indonesia, that industry is more expensive than trading. This has led to imports from other countries even though we have vocational schools. This must be addressed. The demand (for SMK graduates) must be created in the linkage or supply chain. Therefore, we can minimize imports by maximizing domestic human resources.
“The existence of the Job Creation Law gives a kind of expectation that in 2021, there will be many investments that open up new jobs and absorb the workforce, thus reducing unemployment rate. Moreover, upon the production and distribution of Covid-19 vaccine, licensing for foreign investors will run smoothly. This enables us to balance between being capital intensive and labor intensive.” Ari said in closing the session. (hjtp)
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