Can Additional Salary Ramp Up Consumption?

Summary

The government will provide additional salaries as aids to workers with wages below Rp 5 million per month. Minister of State-Owned Enterprises (SOE) Erick Thohir said additional salary assistance was part of the National Economic Recovery (PEN) program from the impact of COVID-19.

 This assistance is targeting 13.8 million employees other than state civil apparatus (ASN) and SOEs employees. The records were based on workers registered with the Social Security Administration for Employment (BP Jamsostek), "[The aid is given to workers] who pay dues under Rp 150,000 per month," he said on Thursday (8/6).

Through the program, eligible employees will be given Rp 600,000 per month for four months through their respective bank accounts to prevent fraud in its distribution. "The Ministry of Manpower will start distributing in September 2020," said Erick, who also chairs the Committee for COVID-19 Handling and National Economic Recovery.

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