Covid-19 Affects 1,2 Million Workers in Bali

The outbreak of Covid-19 followed by the enactment of physical distancing and territorial restriction affects the main sectors such as hotels & restaurants, trading, and transportation. As many as 1.283.000 workers affected by Covid-19 in Bali. The pandemic makes income and welfare of workers decrease. It affects 300.000 workers at hotels & restaurants, 550.000 trading workers, and 75.000 transportation workers.

In line with the decline in tourism activity, the production process and distribution with 360.000 workers also surcease. It predicts that industrial activity will be slowing down 50% in 2020 so it will decrease employee bonuses. From the data above, I predict tourism worker’s welfare will decrease, says Setyawan Santoso, Director Deputy of the representative office of Bank Indonesia in Bali, yesterday (3/4/20) as quoted by Bali Post. If this sluggish condition occurs for 3 months, income will decrease as much as 25%. If this condition continues some hotels/companies will close, so they (workers) will work in informal sectors or not works at all, he added.

According to the data from BPS (Central Bureau of Statistic) Bali, on August 2019 unemployment rate in Bali is very low. It’s 1,5% where the informal worker is about 50% of the total so that in the future it is estimated the unemployment rate will reach 2%. Meantime the most affected welfare is those who work in informal sectors. Their lives depend on the formal sector and depend on consumer income. Both factors decreasing. Those who work in the informal sector very vulnerable to the welfare rate so they can fall into a poor family says Setyawan Santoso.

Besides, the number of poverty will increase from 3,6% to 3,8% – 4% especially for the family who the head of household work in informal sectors (50%), hotel, restaurant, trading, and transportation (30%). For that Setyawan Santoso says the government anticipates by release social security program.

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