UB Professor: Unemployment Needs to be Safed While Pandemic

UB Professor and Secretary of the Advisory Council of the Republic of Indonesia, Prof. Devanto Shasta Pratomo, said that the efforts that can be made by the government during a pandemic is saving unemployment.
As a result of the COVID-19, he said, 1.5 million workers were fired and laid off.
According to the prediction of Prof. Devanto, the COVID-19 pandemic which is increasingly widespread coupled with the physical distancing policy has made the resilience of an industry able to survive until June.
“And in this case the textile industry is most vulnerable to layoffs,” said Devanto in the 2nd IKA UB Online Discussion forum.
He added that the government’s efforts to save unemployment through various policy programs were in the right position.
“The government is in the right position to save unemployment by issuing pre-employment cards. And these policies have not been widely applied in developing countries like Indonesia, “said the Professor of FEB UB.
This Pre-Employment Card actually aims to improve skills and is not a bonus for the unemployed.
“So, the pre-work card target must be right,” he said. Another effort that can be done with wage subsidies.
“If the pre-employment card is given to individuals, the wage subsidy is given to the company,” he said.
Meanwhile, Professor of FEB and Staff of the Minister of Finance, Prof. Candra Fajri Ananda said the main thing that must be considered at this time is how to deal with health problems amid the limitations of the COVID-19 pandemic.
He said that no matter how good the economic policy is, if the human capital is lost, the result will be zero.
“The point is that health management is currently the main thing that must be carried out by the government. This is what distinguishes the current crisis from previous years, ”he said.
Responding to the problems occurred, Prof. Candra offers several policy options that the government can implement in the short term and after the pandemic.
In the short term, the policy focuses on health, social safety nets (JPS) and BLT. Meanwhile, the post-pandemic period focuses on how to strengthen aggregate demand or purchasing power by creating jobs.
The second is sector-wide reform.
“The COVID-19 pandemic has taught many things that all policies can be carried out efficiently, even, PERPU can be produced at home,” he said.
The Head of IKA UB, Prof. Ahmad Erani Yustika, responded that all government program designs must be carried out quickly.
“How programs must be synergized with the government’s stimulus package. If this can be done, the manifestation of being present in the field can be done, “he said.
He said the government’s stimulus package consisted of Rp75 trillion in health, Rp. 110 trillion in social protection, Rp. 70 trillion for industry, and 150 trillion in economic recovery.
Responding to the health sector, Prof. Erani also shared the same opinion that for the health sector at this time it should be the main focus of attention. He added that Indonesia must be able to have sovereignty in the pharmaceutical sector so that it can meet the need of domestic medicines.
“Even if necessary, Indonesia can create its own vaccine for COVID-19,” he said. [Oky dian / Humas UB/ Trans. Iir]