According to Minister of Manpower Ida Fauziyah, this subsidy aims to prevent entrepreneurs from laying off their workers and to give financial support to furloughed workers.
"This subsidy is also expected to increase people’s purchasing power, maintain workers/laborers’ well-being, and ease the burden of entrepreneurs to do business during COVID-19 pandemic," she said on Wednesday, as quoted by the Cabinet Secretariat's website.
She expressed hope that the subsidy could ease the burden of companies so the employers and workers can have a bipartite dialogue to seek solutions that benefit all.
That way, she added, a harmonious and favorable industrial relationship will be maintained and layoffs will be avoided.
The Minister went on to say that the wage subsidy will be disbursed to 8 million people with a total budget of Rp8 trillion.
Each beneficiary will receive Rp1 million which will be disbursed through bank transfer.