Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

Labor Market Brief – September 2020 Edition

September 5, 2020

The consequences of the COVID-19 pandemic for the business world and workers are things that influence each other. A decline in company performance can reduce purchasing power which will then also affect the demand side. As part of broader policy measures to counter the impact of the economic and labor market crisis, many countries adopted the strategy of implementing temporary wage subsidies. The Indonesian government has also taken similar steps by providing wage/salary subsidies as regulated in the Regulation of the Minister of Manpower of the Republic of Indonesia Number 14 of 2020. This policy is part of the economic stimulus program to reduce the impact of COVID-19.

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