By: Dina Kahyang Putri )*
The dynamics of the global economy cannot be denied, these dynamics must of course be anticipated by Indonesia, so regulations are needed which are expected to be able to mitigate the possibility of a recession where in 2023 almost a third of the world’s countries are threatened to enter a recession. For this reason, the Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation was issued to become a strategic step for the government in anticipating this.
It is hoped that the Job Creation Perppu can continue to navigate the dynamics that are currently happening. Thus, the government’s efforts to increase employment and social welfare as well as provide convenience in doing business can continue to be carried out.
Secretary of the Task Force (Satgas) Arif Budimanta said, the parties that would feel the most impact from the presence of the Job Creation Law were actually Micro, Small and Medium Enterprises (MSMEs) and low-risk businesses. They are facilitated in obtaining permits through the Online Single Submission (OSS) system.
The stipulation of the Perppu on Job Creation is a strategic step for the government in anticipating global economic uncertainty. This is done through creating and increasing employment, ensuring that every citizen gets a job, empowering cooperatives and MSMEs, as well as adjusting various regulatory aspects related to ease of doing business.
Assumptions and views stating that the Job Creation Law is very pro towards foreign investors, of course, need to be straightened out, because what investors mean is not only investment from abroad or foreign investment (PMA), but also domestic investment (PMDN).
Of course, it is hoped that the relevant ministries/institutions will be able to socialize the Job Creation Perppu to the public. Thus, the public mindset can better understand the existence of these regulations.
In addition, a joint agreement from all public relations ministries/agencies is also needed regarding the issuance of the Perppu Cipta Kerja. Because this will make it easier for officials to socialize these regulations to the public.
The existence of the Job Creation Perppu is something that Indonesia really needs, because this policy is a real solution for the Indonesian government so that it can continue to implement the Constitutional Court’s decision in the midst of an urgent situation.
The Director General for the Development of Industrial Relations and Social Security (PHI and Social Security) at the Ministry of Manpower, Indah Anggori Putri explained that there had been a change in substance in the Job Creation Perppu when compared to the regulations derived from the copyright law.
In the Job Creation Perppu issued at the end of 2022, there has been a change in the calculation formula taking into account three variables, namely economic growth, inflation and certain indices. This change is intended to provide a more adaptive formula for calculating the minimum wage.
Putri said that changes also occurred with the confirmation of the requirements for setting the district/city minimum wage (UMK). The UMK can be determined if the calculation result is higher than the provincial minimum wage (UMP).
Changes also occurred in relation to the government’s authority in determining the formula for calculating a different minimum wage in the event of certain circumstances. The new provisions have the intention of providing a legal basis for the government in an effort to overcome certain conditions that have an impact on the continuity of work and business.
The existence of Perppu Number 2 of 2022 is urgently needed by Indonesia, because this policy is a real solution for the Government of the Republic of Indonesia to continue to be able to implement the decisions of the Constitutional Court in the midst of an urgent situation.
On a different occasion, the Minister of Manpower Ida Fauziyah explained the fundamental reasons for issuing two legal products to accelerate job creation, through instruments to facilitate investment and protect workers.
This legal product will of course have implications for employers as employers and workers as job recipients. The Ministry of Manpower noted that the issuance of the Job Creation Perppu will make provisions regarding the minimum wage, including the calculation formula.
Coordinating Minister for the Economy Airlangga Hartarto said that one of the government’s strategies to survive the threat of a 2023 global recession is to have legal certainty regarding investments that will enter Indonesia.
The issuance of the Job Creation Perppu is important to provide guarantees to all elements, not only to employers, but also to workers. Airlangga also believes that the Job Creation Perppu also aims to guarantee the welfare of the employees
Moreover, workers affected by layoffs will be given a Job Loss Guarantee of 45% of salary and receive training in the form of retraining and reskilling. Both of these are given for 6 months to workers affected by layoffs.
Airlangga also explained that the issuance of the Job Creation Perppu was urgent, because the government needed to anticipate various risks of global uncertainty, including those related to the potential for a global recession.
So it can be said that the Job Creation Perppu is a strategic step from the government to deal with all possibilities that can occur with the dynamics of the world economy.
)* The author is a contributor to Persada Institute