DRI lauds govt decision to provide wage subsidy assistance

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Head of the Danareksa Research Institute (DRI), Rima Prama Artha, has lauded the government’s decision to provide wage subsidy assistance (BSU) of Rp1 million to workers earning less than Rp3.5 million.

“We welcome well the assistance that is focused on supporting the lower middle class because they are the most affected by COVID-19 and have not recovered yet,” Artha said during a virtual talk show entitled ‘Economic, Financial and Fiscal Overview,’ which was accessed from here on Thursday.

Based on DRI’s research in March 2022, people with incomes below Rp1.5 million have experienced a decline in income compared to six months ago due to a fall in activity at the beginning of the year due to the spread of the Omicron variant of COVID-19.

Meanwhile, the incomes of people earning from Rp1.5 million to Rp3 million and those earning more than Rp3 million have remained constant.

In a survey, most of the community, or 76.10 percent of the respondents, expressed the concern that the increase in the prices of basic commodities could hinder economic recovery in their regions.

“If we look at the trend from year to year, the highest inflation occurs during Eid al-Fitr. Thus, with the energy crisis that has also increased commodity prices, people feel that price increases are the most influencing factor in the decline in economic recovery in their regions,” Artha said.

The difficulty in finding jobs and disease outbreaks are other factors that people fear would slow down the pace of economic recovery in their regions.

In addition, people have also estimated that the increase in food prices would continue for the next six months due to an increasing trend in global inflation and geopolitical conflicts.

“In the midst of rising prices and limited job opportunities, some people with salaries below Rp1.5 million to Rp3 million do not have savings for their daily needs. For that reason, we really welcome the government assistance for them,” the DRI head remarked.

Source: Antara News