By: Andika Pratama
The Job Creation Law (UU) has become the center of public attention, especially in the employment cluster. The Job Creation Law is designed to provide legal certainty and increase Indonesia’s competitiveness. The Job Creation Law provides certainty to workers and employers, builds a new culture in the bureaucracy, and improves Indonesia’s competitiveness ranking at the international level.
One of the main objectives of the Job Creation Law is to create more jobs for the Indonesian people. In the midst of ongoing global economic challenges and demographic changes, Indonesia needs policies that can create sustainable jobs. The Job Creation Law introduces various reforms that can increase labor market flexibility, making it easier for companies to recruit new workers.
The employment cluster in the Job Creation Law aims to provide legal certainty for both workers and employers. Secretary of the Task Force for the Acceleration of Socialization of the Job Creation Law, Arif Budimanta, explained that the Job Creation Law seeks to create a fair meeting point between the two parties. Arif Budimanta said that aspects such as wages and employment guarantees are regulated to provide protection and certainty. Arif Budimanta also emphasized that although it is not easy to satisfy all parties, the Job Creation Law seeks to create a fairer and more transparent work environment.
The Job Creation Law Task Force is active in bridging dialogue between workers and employers, especially in discussions regarding wage formulas. This shows the government’s commitment to ensuring that this policy is implemented in an inclusive and participatory manner. Providing certainty, convenience, empowerment and protection are the principles implemented in this Job Creation Law.
One of the main objectives of the Job Creation Law is to build a new culture, especially in the bureaucracy. With a focus on simplifying the licensing process, the Job Creation Law introduces a risk-based system that categorizes licensing into low, medium and high risk. This allows business actors, especially MSMEs, to more easily obtain business permits, reducing the burden of bureaucracy which previously was a major obstacle.
This approach also reflects a change in the government’s perspective on regulations and licensing, namely with a greater focus on compliance and self-declaration. This not only speeds up the licensing process but also reduces the potential for corruption and inefficiency in the bureaucracy. This is an important step in building a new, more proactive and efficient culture.
The Job Creation Law also contributes significantly to increasing Indonesia’s competitiveness on the international stage. Based on the World Competitiveness Ranking (WCR) report by the Institute for Management Development (IMD), Indonesia’s competitiveness ranking increased from 44th to 27th position in 2024. President Joko Widodo said that this increase was largely due to the implementation of the Job Creation Law, which improved the field of government, the business world, and economic stability.
The main factors that increase competitiveness include increased labor productivity and stable economic conditions. Apart from that, community support through behavior and culture also plays an important role in increasing competitiveness. However, there are still several areas that need improvement, such as health, education, science and technology.
Even though the Job Creation Law has shown a positive impact, there are several challenges that must be faced. One of them is ensuring that all aspects of this law are applied consistently and fairly. Apart from that, there needs to be improvements in health, education, science and technology infrastructure, which are still considered weak in Indonesia’s competitiveness index. President Jokowi emphasized the importance of improving the quality of these sectors to strengthen national competitiveness.
Although the Job Creation Law brings many potential benefits, its implementation is certainly not without challenges. Some criticisms that often arise are concerns that this law could weaken protection for workers and the environment. Therefore, it is important for the government and society to continue to monitor and ensure that the implementation of this law goes according to its initial aim, namely creating a balance between economic growth and social welfare.
The government is engaging various stakeholders, including trade unions, employers and civil society organizations, in an open dialogue regarding the implementation of this law. Apart from that, there needs to be a strong commitment to strengthening supervisory and law enforcement institutions so that the policies that have been established can be implemented effectively.
The Job Creation Law is a strategic step taken by the Indonesian government to overcome various economic and employment challenges. By supporting the implementation of this law, we can open up great opportunities for economic growth, job creation and increased national competitiveness. However, the success of this law is highly dependent on the commitment of all parties to work together and ensure that this policy is implemented in a fair and sustainable manner. In this way, Indonesia can move forward towards a brighter and more prosperous future.
*The author is a JabarTrigger.com Contributor