The Law on Job Creation is a Solution to Accelerate Economic Recovery Due to the Covid-19 Pandemic
By: Agung Wicaksono )*
The Job Creation Act is a bold step for the Government to simplify regulations that have been stifling investment. This policy is also expected to accelerate the National Economic Recovery which was previously affected by the Covid-19 pandemic.
The law that was formulated in the Jokowi-Ma’ruf Amin era is believed to be able to encourage the improvement of investment climate conditions through investment in Indonesia in a better direction.
One of the discussions contained in the job creation law is related to the ease of investment in Indonesia in order to support business and business growth. The Ciptaker Law is expected to make it easier to open a business and invest, the implication of which is to absorb more workers.
The Ciptaker Law also regulates employment, such as rules for working hours, severance pay, wages, and the mechanism for contract workers aimed at increasing the certainty and quality of workers in Indonesia. Therefore, it is hoped that the law can be a solution to the problem of unemployment and the new workforce who have not had the opportunity to work.
In addition to making it easier to absorb workers and making it easier to set up a business or company, the Job Creation Law also has other positive goals to facilitate increased investment in Indonesia. In this case, the investment target is not only foreign investment (PMA), but also domestic investment (PMDN).
Arsjad Rasjid as Deputy General Chair of the Indonesian Chamber of Commerce and Industry (Kadin) for the Development of National Entrepreneurs revealed that the implementation of the Employment Act (UU) is one solution to various regulatory problems that have been shackled to the government, both at the central and regional levels.
Arsjad stated that the Job Creation Law is a tangible manifestation of the massive structural reforms carried out by President Jokowi in order to create a conducive investment climate, create job opportunities and reduce poverty in Indonesia.
He said that without structural reforms, economic growth in Indonesia would be difficult to increase because of the very strong structural ego, both in Ministries/Agencies (K/L) and local governments.
Uki Dhaniswara K Harjono as an expert on Economic Development Law, expressed his appreciation for the government that has presented a new legal product, where the regulation is considered to provide hope for Indonesia to restore the economy, the regulation is the Job Creation Law.
The Job Creation Act (Ciptaker), which consists of 116 articles, is able to revise 77 laws which previously contained overlapping laws and there was no certainty. The Ciptaker Law itself touches on licensing and investment issues where the implementation of this Law is an effort to increase investment which will open up wider job opportunities.
He said that one of the positive sides of the Job Creation Act is the ease of building a company, if in the past to build a company a minimum of Rp 50 million was required, then with the existence of the Job Creation Act, the regulation was abolished. Uki assessed that the Job Creation Law was also very necessary to overcome various existing problems and challenges in the future.
Such as taking advantage of the demographic bonus that Indonesia will experience in the next 10-20 years, then simplifying, synchronizing and cutting regulations due to too many regulations issued at the center and regions that hinder business activities and job creation.
Uki said that in 2030 Indonesia will experience a demographic bonus where the peak will be in 2040. This means that the composition of the productive age is much larger. So that a concrete solution is needed to anticipate this demographic bonus by increasing employment opportunities.
The Employment Creation Act also regulates the ease of developing MSMEs, among others, MSME business activities can be used as guarantees for accessing business financing loans. Not only that, the registration process for Intellectual Property Rights (IPR) is also said to be simplified and simplified.
The Job Creation Act also aims to increase the role and welfare of workers or laborers in supporting the investment ecosystem. The Job Creation Law also continues to regulate the rights and protection of workers’ or laborers’ wages in accordance with the existing laws and regulations.
The Job Creation Law is a breath of fresh air for economic growth in Indonesia, various studies have been carried out and of course this law is expected to be useful for employers and workers.
)* The author is a contributor to the Press Circle and Cikini Students
