Jakarta – E-wallet platform DANA has officially become the government's latest partner to disburse cash assistance to participants of the pre-employment card program, following a memorandum of understanding (MoU) signing on Wednesday.
The pre-employment card program's executive director Denni Puspa Purbasari said the partnership with DANA was part of the government's effort to boost the effectiveness of the program through a digital approach.
"The involvement of the private sector is needed to accelerate the implementation of the training that is relevant to the present day demand, as well as to support the registration process and ensure a seamless and safe distribution of funds," he said in a statement on Wednesday.
The government resumed this month the pre-employment card program, which combines social assistance with upskilling for people affected by the COVID-19 pandemic, after a brief halt following irregularities.
With an economy contracting 5.32 percent year-on-year (yoy) in the second quarter, the government is confronted with massive job losses.
Around 3.7 million individuals have lost their jobs so far this year due to the pandemic, according to data from the National Development Planning Agency (Bappenas), a number that is expected to hit around 10 million by the end of the year.
With a budget of Rp 20 trillion (US$1.35 billion), the pre-employment card program aims to help pandemic-hit workers and small business owners by offering monthly assistance of Rp 3.5 million for four months to cover training costs and cash benefits.
DANA CEO Vincent Iswara said the company would distribute incentive funds to pre-employment card program recipients who had completed the training program.
"We are enthusiastic that the government trusts us with this partnership. We believe this program is very important and should be supported as it can help people gain new capabilities during this pandemic," he said.
DANA is the government's latest e-wallet partner for the program, aside from Gopay, LinkAja and OVO.
Other private sector companies partnering with the program include e-commerce firms Bukalapak and Tokopedia, as well as edtech companies Mau Belajar Apa, Pintaria, Pijar Mahir and Sekolahmu. (eyc)