By: Edi Jatmiko) *
Not only as a legal umbrella for existing rules, the application of this omnibus law will absorb more labor. So that it will reduce unemployment significantly.
The broom law which has been widely discussed by the public seems to have been awaited for immediate realization. Not only will it become a legal umbrella for a number of laws, but this scheme is claimed to absorb large numbers of workers through an improvement in the investment climate. The investment climate which previously slowed due to the conservative variety of rules, will now be able to break through all the intricacies through this omnibus law.
Previously, the Government was finalizing a groundbreaking legal breakthrough in the Draft Law (RUU) called the omnibus law created by employment. According to the plan, next week it will be submitted to the DPR and it is targeted that it will be finished in approximately three months.
This effort to give birth to the omnibus law is suspected to solve the deadlock over various problems that have been seen as hindering, on the other hand the need for job creation has become a necessity amid soaring unemployment.
According to the Coordinating Ministry for Economic Affairs, there are various problems that cause up to 7 million people are still unemployed in the archipelago.
Yet every year the number of new workforces actually continues to grow to touch the number 2 million people. While the number of Informal Workers is considered to dominate. The dominance of Informal Workers is caused by the development of the digital economy that makes entrepreneurs online and independent, as well as the characteristics of millennials who are inclined to choose working hours flexibly.
Therefore the government then spurred economic growth of 6% or more per year. This is nothing but to open new jobs to accommodate 2 million new workers along with 7 million existing unemployment.
While growth in the economic sector requires new investment in the range of IDR 4,800 Trillion (every 1% of economic growth, requires up to IDR 800 Trillion).
For that, the government needs to maintain a balance between needs. Employment Expansion that requires Investment, including efforts to protect Workers (existing). So that later the creation of new jobs, as well as increased protection for workers, will require comprehensive regulatory reform, including in the labor sector.
In addition, the government has made various efforts to improve the welfare of the workforce, among others with a variety of Pre-Employment Card programs, Increasing the benefits of work accident insurance and life insurance, not forgetting, including Provision of worker housing.
This Omnibus law created employment opportunities were digadang as Java tires for the expansion of employment and provide protection for workers. This omnibus law is reported to cover up to 1,244 articles of 79 laws which have been tried to be reduced so that they become a flexible legal umbrella to respond to changes in the labor and investment sector.
As the forerunner of this omnibus law, it is suspected that it started with the President’s Speech at the Plenary Session of the Indonesian MPR In the Framework of Inauguration of the President and Vice President for the 2019-2024 Period, on 20 October 2019 in the MPR, which contained among others:
Building human resources as a hard worker mentality, and dynamic, Investment for job creation must be prioritized and complicated procedures must be simplified, the Government will also invite the House of Representatives to immediately issue the Employment Copyright Law which becomes the Omnibus Law to revise dozens of laws that are considered to hinder the creation employment along with the development of UMKM.
Unemployment in Indonesia does indeed look so prominent. Increasing urbanization but not accompanied by vacancies is suspected to be the reason they are unemployed. Worse, this unemployment raises a number of problems. Starting from the economy to social inequality.
Do not dismiss the government’s efforts to reduce the problem. However, the main problem does exist in a number of regulatory and bureaucratic rules that hinder government efforts. Therefore the application of the omnibus law must be realized immediately. Not only being able to suppress or even be able to eliminate unemployment through improving the investment climate. But also as a concrete step to realize the national economy and equalize the welfare of the population. Finally, welcome to a new Indonesia that is more robust and capable of being able to be empowered in its own country.
) * The author is a social political observer