By : Putri Dewi Nathania )*
The number of the workforce always increases in line with the increase in the number of young people graduating from high school/vocational school and tertiary institutions, so it is only fitting that this increase be balanced with job openings. Therefore, a formula is needed that can make it easier for young people to get a job, that formula is the Job Creation Law (UU Ciptaker).
The labor force in Indonesia annually grows by approximately 2.4 million people. So that normatively there should be additional decent jobs for the workforce. If you don’t lose, it means that there will be people who are unemployed or forced to work but with inadequate income.
The Chairperson of the Monitoring and Evaluation Working Group (Monev) of the Job Creation Law Task Force who is also Deputy III to the Presidential Chief of Staff, Edi Priyono emphasized that one of the objectives of the issuance of the Job Creation Law is to expand employment opportunities. Especially for the younger generation.
Investment is needed to create jobs, both foreign and domestic investment. Including the emergence of young entrepreneurs or entrepreneurs who are able to create jobs.
So how can investment come to create jobs, of course the rules and permits for starting a business must be simplified and clarified. So that if there are investors who want to build a business, they are not hampered here and there.
Edi also emphasized that through the Job Creation Law, the government actually provides facilities for young people to be able to get decent jobs. If some of the young people are interested in becoming entrepreneurs, of course the rules are simplified.
With One Single Submission (OSS) there is MSME certification and NIB licensing (Business Permit Number). Now if you want to start a business and enter a small or micro business, OSS is low risk. Within minutes (NIB) was out. Then if the business is low risk, NIB can be directly used for operations.
In fact, the scope of the Job Creation Law is actually quite broad. Not only regulate someone who is already working, but who has not worked and who is no longer working.
Those who are not yet employed will be encouraged so that businesses can emerge that can grow well so that they can absorb new workers. Because it is important for the government to be able to maintain a balance of welfare, on the one hand those who are already working have the potential to be prosperous and on the other hand those who have not worked also get a chance. Those who are no longer working due to layoffs or entering retirement, this is also guaranteed.
The main goal of the Job Creation Law is, of course, to harmonize existing policies at the central and regional levels, as well as overcome overlapping problems, moreover this law will cut articles that are considered ineffective.
It is hoped that the ratification of the Job Creation Law will have an impact on good economic development and be able to encourage investment with a simple licensing system/process. Which has now been changed from permit-based to risk-based and can be obtained online through the Online Single Submission Risk Based Approach (OSS-RBA).
With the ease of obtaining business licenses, it is of course expected that the investment climate in Indonesia will improve. As well as attracting local and foreign investors to invest in Indonesia. If the investment rate increases, of course employment will be more open in various sectors, so that the number of unemployed will decrease.
Of course, when investment increases, of course employment will also increase. This is the true purpose of the Job Creation Law, which is to make it easier for the workforce to get decent jobs.
Referring to BKPM’s records, Indonesia has a vision to become the top five countries with the strongest economies in the world, and to have a GDP of IDR 27 million per capita per month by 2045. It is only natural that Indonesia hopes for the Ciptaker Law which makes the business climate conducive, can absorb more workforce thereby reducing unemployment, as well as increasing economic growth, as well as increasing worker productivity.
A survey conducted by Standard Chartered in March 2021 shows that US and European companies have ranked Indonesia 4th in ASEAN as the most preferred country in terms of opportunities to build or expand company resources, sales or operations for six to twelve next month.
With the existence of the Job Creation Law, it will be easy for many entrepreneurs to expand, so that jobs will be created which can later accommodate the unemployed and new workers.
Young people are a potential that must be facilitated to be able to get a decent job, so that the unemployment rate can be reduced which will also have an impact on increasing welfare. Therefore, the ratification of the Job Creation Law needs to be supported so that it can spread the benefits more broadly, especially to job seekers.
)* The author is a contributor to the Perkasa Media Institute
