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"We will provide Rp 8.8 trillion worth: of wage subsidies, for 8.8 million workers [in nonessential
industries)," Sri Mulyani told reporters in an online press conference on Wednesday evening.
With the support, the government aims to minimize the impact on businesses caused by the
activity restrictions. The government recently extended the restrictions by five days to July 25
but promised to loosen.them should there be asignificant drop in cases.

However, at almost 50,000 new cases on Thursday, the daily tally of confirmed COVID-19
infections' remains far above the: government's 'short-term target of below 10,000.

Sri Mulyani reminded companies that workers eligible for the program had to remain employed.
She said the support was proposed to help. those working reduced hours'or put on unpaid leave
by employers 'struggling during the economic crisis. Meanwhile, the preemployment card
program would focus on people recently laid off.

To fund both programs, the government has allocated Rp 10 trillion from the state budget. More
than Rp 8.8 trillion of that sum will be disbursed 'for the wage subsidy, and the rest will go
toward the preemployment card program.

However, the government's plan is a far cry from what business associations had demanded in
a joint statement earlier in the day, namely that the employers would reduce wage payments to
their workers while the government would cover the difference.

One association demanded that the government pay half of the wages, which would amount toa
much bigger subsidy than the Rp 500,000 per month decided by the government.

The: planned subsidy is also lower than payments made in a 2020 program, when workers on
payrolls of under Rp 5 million could get up to Rp 2.4 million for two months, Malaysia, in a'similar
but more extensive program, gives workers at least $142 per month for a period of three to six
months in the tourist and retail sectors and one month in other sectors.

The government did not meet the other demand. made by the business groups, namely to loosen
workplace restrictions, Coordinating Economic Minister Airlangga Hartarto said the government
would stick to its current policy, He said that, to have: employees: work on premises rather than
from home during the pandemic, firms had to get an Industry Ministry permit (OMKD.

"Industries are regulated un-der the IOMKI from the Industry Ministry. The health protocol
(under the permit] is clear," Aitlangga: told reporters, speaking at the same: press conference
as Sri Mulyani.

Currently, a 100 percent workfrom-home regime applies to companies in business sectors
categorized as. nonessential, effectively forcing those who cannot implement remote work to
suspend operations. In the essential sectors, the government has capped workplace occupancy
at 50 percent of the usual capacity:

Meanwhile, industry associations had urged the government to loosen those restrictions by
allowing firms in nonessential sectors to work with 50 percent of their staff on premises and 25
Percent for auxiliary roles.

They also demanded that businesses in the essential sectors be allowed to workat full capacity,
which would amount to the same treatmentas afforded to firms in sectors classified as critical.

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