"We do not want subsidy cut affect productivity"

JAKARTA. Manpower Minister Hanif Dhakiri urged businesspeople to establish bipartite committees to help find solutions after the central government's decision to slash fuel subsidies to finance the country’s development programs.

A bipartite committee is a communication forum between company employers and labor unions.

“We believe that both employees and employers feel the pinch of the fuel-price hike. We want both parties to enhance their communication to find win-win solutions to help cope with the impacts of the fuel-price hike,” Hanif said in Jakarta on Tuesday.

He also urged employers to provide their employees with food and transportation incentives to cushion the impacts of the fuel-subsidy cuts.

“We do not want this subsidy cut to affect the productivity of every company,” he added.

He said that employers now needed to think about steps they should take to create efficiencies without laying off their employees.

“We are hoping the companies don't dismiss some of their workers because of the fuel-price hike,” he said. (Nurfika Osman)