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Some business circles have given signals about the threat of the second wave of layoffs that occurred in the explosion of Covid-19 cases in mid-2021. Even the phenomenon of salary cuts is unavoidable experienced by workers.

"For entrepreneurs, this is already in the emergency category, because cashflow is dying while the opportunity to get turnover and profit is uncertain. Entrepreneur psychology must be very restless, anxious to think about what will happen to their business in the future if the pandemic is prolonged," said the Chairperson of the DPD HIPPI Prov.DKI Jakarta Sarman Simanjorang.

If the Emergency PPKM is really extended, it will be a dilemma for entrepreneurs, especially MSMEs. Some are able to survive with very thin cash flow, but there is a possibility of rationalizing by laying off employees and laying off employees, even at the most extreme closing their businesses. However, all will return to the resilience of each business sector.

"If this Covid is still prolonged and there is no certainty, of course, slowly and surely it is just a matter of time, more entrepreneurs will fall, especially MSME actors who are very vulnerable to this condition," said Sarman.

The President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal said that salary cuts had occurred a few months ago, the condition worsened after the implementation of the emergency PPKM, there were several categories of workers affected.

The first are workers in capital-intensive industries such as mining, automotive, electronics, to steel factories who receive their basic salary in full, but their non-permanent benefits are cut such as allowances, transportation, attendance and others.

Second, labor-intensive labor incentives vary in wages by 25%, some 50%, for example in textiles, garments, shoes, food and beverages, electronic components, printing ceramics. Then the last ones that were not paid at all were retail companies, logistics, transportation, hotels. Like a Melati hotel, if there is occupancy, it will be paid, so it's daily," said Iqbal.

Third, the category for which there is no payment at all generally comes from sectors that are heavily affected and exhausted due to limited mobility. In addition to not being paid, workers are not affected by layoffs. This is because the company is unable to pay severance pay.

Based on the Indonesia Business Coalition for Women Empowerment (IBCWE) survey, workers, especially those with low incomes, experienced a lot of salary cuts.

IBCM Research Manager Nizma Fadila said as many as 57% of employees with low income, which is under Rp 5 million per month, experience this.

This figure is greater when compared to employees earning above Rp 10 million per month. Where those who experience a pay cut of 47%.
This data was obtained through a survey on the impact of Covid-19 on private employees in Indonesia. This survey was conducted in two waves, namely May and December 2020.