LIPI: Millions of People Lose Salaries and Jobs due to Covid-19

Based on a survey conducted by the Indonesian Institute of Sciences (LIPI) in 2020, millions of workers lost their jobs due to the Covid-19 pandemic. Meanwhile, those who still have jobs have to lose part of their salaries.

Illustration. Workers lay off due to the Covid-19 Pandemic (ACTNews / Muhamad Ubaidillah)
Illustration. Workers laid off due to the Covid-19 Pandemic (ACTNews / Muhamad Ubaidillah)

ACTNews, JAKARTA – The Covid-19 cases in Indonesia continue to increase. Based on data from the Ministry of Health, the number of active cases as of May 2021 has reached 1,697,305 cases with 46,496 deaths.

The Covid-19 pandemic also affects the economy and employment. Many workers have been laid off because many businesses are forced to reduce their production or stop operating.

Based on data from the Indonesian Institute of Sciences (LIPI), around 2,084,593 workers from 116,370 companies were laid off. This number is expected to grow as the pandemic continues.

In addition, LIPI was also surveyed to see further the impact of Covid-19 on workers. There was an increase in layoffs of workers and decreased income as a result of the disruption of business activities in various sectors. As many as 15.6 percent of workers experienced layoffs while 40 percent of workers experienced a decrease in income.

The survey, which involved 2,160 respondents in 34 provinces in Indonesia, also stated that Covid-19 had stopped 40 percent of independent entrepreneurs' businesses in Indonesia. Meanwhile, the other 52 percent are having their production decreased.

Furthermore, The survey stated that the Covid-19 pandemic also had an impact on casual workers in the agricultural and non-agricultural sectors who work based on work calls. 55% of agricultural and non-agricultural casual workers no longer have work calls, meanwhile calls for the other 38% have decreased. Then, based on the income, 58% of the casual workers no longer have income while the 28% of them have their income decreased up to 30%.

From the survey result, LIPI predicts that 10 million independent entrepreneurs will stop working, and the other 10 million will have a decrease in income by more than 40 percent. Meanwhile, as many as 15 million workers will be unemployed.

The poverty rate is estimated to reach 17.5 million households due to the decline in wages and without income, assuming the poverty line is IDR 440,000 of GDP per month.


Illustration. One of the beneficiaries of Waqf Rice. (ACTNews)

Helping Food Needs

The reality inspired Aksi Cepat Tanggap to initiate Ramadan Food Alms Movement. In this Ramadan, the efforts continue to be strengthened by launching Ramadan Care Line. in the last ten days of Ramadan, the Ramadan Care Line service is open for 24 hours

The coordinator of Ramadan Care Line, Pungki Martha Kusuma explained in the first three days of Ramadan Care Line with 24-hour service, the incoming calls had significantly increased compared to the previous days. Usually, the maximum numbers of incoming calls were only a thousand calls per day. However, in the last three days, 8,766 calls have been received.

Apart from the potential beneficiaries, the call also came from relatives, neighbors of potential beneficiaries, to Heads of RT who want to help residents who need food assistance. []