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Appreciate the Implementing Regulations of the Job Creation Law

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By: Rahmat Siregar ) *

A total of 49 implementing regulations for the Job Creation Law have been officially promulgated in the State Gazette of the Republic of Indonesia. The public also appreciates the fast movement of legislation implementing the Job Creation Law in order to accelerate national economic recovery during the Covid-19 pandemic.

Minister of Law and Human Rights Yasonna Laoly, in a written statement in Jakarta, hopes that the enactment of the derivative regulations of the Job Creation Law can immediately restore the national economy.

              Yasonna said, with the promulgation of the implementing regulations for the Job Creation Law, it is hoped that it can immediately have an impact on efforts to restore the national economy as well as become a momentum to confirm the year of Indonesia’s awakening.             

              He said that the Job Creation Law was made from the beginning to be a positive stimulus for the improvement and growth of the national economy which would open up many jobs for the community.

              The Job Creation Law, is also a breakthrough and a way for the government to seize investment opportunities from abroad through simplifying permits and cutting bureaucracy.             

              It is known that the government continues to push forward the completion of the derivative regulations of the Job Creation Law. Derivative regulations that were promulgated in the Republic of Indonesia earlier this week consist of 45 government regulations and four presidential regulations.             

              The total of 49 implementing regulations adds to the list of derivative regulations that have been promulgated. Previously, there were already 2 PPs that were stipulated as regulations, namely PP Number 73 of 2020 concerning Investment Management Institutions and PP Number 74 of 2020 concerning Initial Capital of Investment Management Institutions.

              As a whole, the derivative regulations that are implemented in the Job Creation Law are planned to be stipulated as many as 49 PP and 5 Perpres.

              According to him, this implementing regulation is expected to be a “vaccine” for the sluggish Indonesian economy.

The Job Creation Law is indeed designed by the government to ease the burden on small entrepreneurs, because there are several articles in the Omnibus Law on the Job Creation Law that can change their fate for the better in the future.

              Article 91 of the Job Creation Law states that licensing MSMEs will be easier. If previously the entrepreneur had to come directly to the Licensing Office and go through the tortuous bureaucracy, now it can be registered online . With the condition that you must attach a business license from the Head of the RT and a valid KTP.

Regarding the PP and Perpres which are enacted by considering the wide scope and dynamics of the changes that have occurred, the government will continue to carry out evaluations according to national developments and needs.

              In Government Regulation Number 7 of 2021, there is a regulation on Convenience , Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises.

              In addition, there is also Presidential Regulation Number 11 of 2021 concerning the Investment Business Sector.

Small entrepreneurs such as MSME businesses must be part of a large supply chain . Siding with industrial estate, for example, taking sides where facilities and facilities must be available for cooperatives and MSMEs.

The Job Creation Law is needed 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 (2020-2040), then simplifying, synchronizing and trimming regulations because there are too many regulations issued at the central and regional levels that hinder business activities and create jobs.

The Job Creation Law stipulates that every contract worker in the event of termination of employment will be given full compensation. Meanwhile, permanent employees will be given severance pay and that too must be given in full.

The Job Creation Law is arguably the umbrella law. In its application, it still requires derivative regulations ranging from Government Regulations to Ministerial Regulations. Of course it is very unfortunate if there are parties who do not understand the substance of the Work Creation Law as a whole. Moreover, the explanation that has been circulating in the community is tinged with hoaxes and disinformation which can ignite people’s emotions.

              On a different occasion, the Minister of Manpower (Menaker) Ida Fauziyah explained that in the Omnibus Law, the Job Creation Law, there are rules that explicitly explain that the government will provide social security in the form of cash and job opportunities.

              It apparently contained in Pemeraturan Government Number 37 Ta hun 2021 on the Implementation of Losing a Job Guarantee Program.

              The Implementing Regulations of the Job Creation Law must certainly be appreciated, because this is one of the “vaccines” that can generate strengthening Indonesia in the economic sector.

) * The author is a contributor to the Cikini Press Circle and Students

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