An innovative approach is needed to encourage the government in implementing critical reforms, but the approach needs to be culturally sensitive. The program shows that a reform associated with a wage bill is difficult to implement. Layoffs or significant cuts in overtime payment have social ramifications and need to be dealt with sensitively, especially when there are limited alternative employment opportunities. However, ADB technical assistance (TA) support to the government, and subsequently from other JPRM partners, highlighted ways to improve controls by setting a limit on overtime per worker each fortnight, and operationalizing the unified employment register, while building the political will to limit the number of overtime hours.
Economic Recovery Support Program