Digital Resources

Indonesian Gouvernement introducing pre-employment card program

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The Indonesian government have officially launched the pre-employment card for young job seekers, said the senior minister on Friday (03/19). In 2020 State Budget, President Joko Widodo administrations has prepared Rp10 trillion (US$645.16 million) for the new stimulus package.

The pre-employment card is part of the President Joko Widodo promised during the election to reduce the idle citizens and targeting the incentives delivers to job seekers with aged between 18 to 24 years. At present there are around seven million unemployed people in Indonesia, representing a 5.28 percent unemployment rate.

The government will disburse the assistance, totaling IDR 3.5 million (US$226.04) in stages, starting with IDR 1 million to take online courses, IDR 2.4 million in post-training benefits and IDR 150,000 as an incentive to take an employment survey.

“This pre-employment card is synonymous with guaranteed job loss after the application of a omnibus law for job creation in the form of unemployment benefit,” he told reporters in a video conference today.

The government partnering with digital company and payment platforms such as Bukalapak, Tokopedia, OVO, Haruka EDU, Sekolah.mu, Sisnaker, P Telkom Indonesia Tbk (IDX: TLKM), Link Aja, and PT Bank Negara Indonesia Tbk (IDX: BBNI) to run the program. Executive director of management of the work card, Denni Puspa Purbasari explained, the government provides training costs of up to Rp7 million per person through the card.

Earlier, minister of finance, Sri Mulyani Indrawati, added, the target of pre-work card recipients as many as two million participants in a limited period.

The government also prepared non-fiscal stimulus is related to the simplification of the ban on export certificates, legal fees and procedural for exporters and importers.

The Indonesian economy growth for 2020 is estimated to 5,5%, with an inflation around 2%, with a national debt around 30%.