Said Iqbal Visits Danantara to Seek Solutions for Preventing Private Sector Layoffs

Jakarta (ANTARA) - Presidential Special Adviser for Employment and Labour Welfare Said Iqbal visited Danantara Indonesia on Wednesday to seek solutions for preventing layoffs in the private sector. He stated that a meeting was held with Danantara Indonesia’s Chief Operating Officer, Dony Oskaria, during which he requested the sovereign wealth fund take a role in injecting capital into troubled private companies to avert job cuts. “From this meeting, we asked Danantara to take a role, in accordance with its main duties and functions, namely to inject capital into troubled private companies,” Iqbal said after meeting Oskaria at Wisma Danantara Indonesia in Jakarta. He clarified that the troubled companies in question are fundamentally healthy but face difficulties because their working capital has been eroded or is insufficient due to factors such as increased product demand. “In this context, ‘troubled’ means the company is actually healthy and can operate again. However, due to factors like eroded working capital, a lack of working capital because of financial issues, or a surge in demand for goods that the company cannot meet, Danantara could potentially take it over,” he explained. Iqbal said the request was made in the hope that Danantara would support President Prabowo Subianto’s directive to prevent layoffs by companies facing bankruptcy. “So, we hope Danantara will support President Prabowo Subianto’s policy to avoid layoffs. If layoffs do occur, workers’ rights must be paid at least in accordance with the law, and at most above the legal minimum,” he stated. During the meeting, an agreement was reached whereby Danantara committed to encouraging the State-Owned Banks Association (Himbara) to provide working capital loans to PT Pabrik Kertas Indonesia (Pakerin) in Mojokerto Regency, East Java. “Danantara will later examine the health of PT Pakerin and will push Himbara to provide loan funds. This will be guaranteed by the remaining good assets at the Indonesia Deposit Insurance Corporation (LPS), which amount to around Rp600 billion. Meanwhile, the working capital needed is Rp400 billion,” Iqbal said. He projected that this capital assistance could enable PT Pakerin to recruit employees, both those previously laid off and new workers. “Around 2,700 employees could be rehired by PT Pakerin,” he estimated.