Indonesia’s wage subsidy support to reach 16 million workers

The Ministry of Manpower is making efforts to ensure that the wage subsidy assistance (BSU) can start to be distributed this month.
By: | September 5, 2022

This was according to Manpower Minister Ida Fauziyah, who said steps have been taken to prepare for the distribution of the wage subsidy, such as completing the financial and budget administration for the allocation of the BSU fund and finalising the Regulation of Manpower Minister concerning BSU distribution. 

The ministry is also coordinating with ministries and institutions on data matching, including with the National Civil Service Agency (BKN), the Indonesian Military (TNI), and the National Police (Polri), so that the assistance is not distributed to state civil apparatus (ASN), TNI members, or Polri members.

In addition, the ministry is also working with state-owned healthcare and social security agency BPJS Kesehatan regarding the data of prospective BSU beneficiaries. Following that, the ministry is coordinating the distribution through the postal company Pos Indonesia and the state-owned Banks Association (Himbara) 

“In essence, the Ministry of Manpower will accelerate this process to ensure the accuracy and accountability of the BSU distribution,” the minister said. 

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The BSU is a form of social assistance provided by the government. President Joko Widodo has directed that assistance be provided to 16 million workers who have a maximum salary of Rp3.5 million (US$235) per month. 

A total budget of Rp9.6 trillion (US$644,397) has been allocated for the BSU, and prospective assistance recipients will receive Rp600,000 (US$40) each.  The assistance is expected to help maintain people’s purchasing power, which has been affected by a surge in prices that has been witnessed globally, Fauziyah said, according to Antara.