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Job Creation Law Anticipating Permanent Unemployment

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By: Putu Prawira) *
The inauguration of the Job Creation Law last October caused the number of unemployed to shrink. The reason is, this Law will regulate the creation of a new company based on labor-intensive basis, so that many workers are needed. This law is also friendly to foreign investment so that the business world becomes more dynamic and eventually companies open new vacancies.
The impact of the Corona storm since March 2020 is that many people have lost their jobs. They had to be sent home because the company went bankrupt and went out of business. The family economy is messy because the father does not have a permanent job, he wants to open a business and he also does not have capital. If this continues, the people’s purchasing power will continue to decline.
The government is trying to overcome the impact of the Corona crisis by enacting the Job Creation Act. This law not only benefits entrepreneurs but also employees, even those who have lost their jobs. Rudi Kurniawan, an economic observer at Unpad, stated that the Human Settlements Law is a solution for 29 million affected workers (aka new unemployed).
The number of 29 million new unemployed is the result of a survey by the Bureau of Statistics. Unfortunately, after a period of adapting to new habits, not all companies were able to bounce back. Research from Barrero, Bloom, and Davis has resulted in the fact that a third of the number of unemployed people is threatened with permanent unemployment, due to the threat of the financial crisis in Indonesia.
Millions of unemployed become permanently unemployed because they have been unemployed for too long, and their work ethic changes (in the sense of being negative). Besides, they don’t have the skills either. Even though currently many companies require prospective employees to have skills, not only being able to type and drive a car, but also master graphic design.
Rudi added, to overcome this problem, the government provided training so that the unemployed would upgrade their skills. So when applying for jobs, they not only rely on diplomas and GPA, but also have soft skills and skills such as mastering Photoshop, Coreldraw, Canva, and other applications.
The government is indeed trying hard to reduce the number of unemployed and create a Job Creation Law that is friendly to foreign investors. Logically, if they want to enter Indonesia and start a new company, they will need a lot of employees. The unemployed will register and eventually get another job, so the kitchen can keep steaming.
It is planned that foreign investors entering Indonesia will create labor-intensive companies, thus requiring a lot of employees. Among the foreign entrepreneurs who will invest, some are engaged in the business of gadgets, cars, and others. Indonesia is their target because the market share is very high and the people are familiar with the product.
That way, foreign entrepreneurs will save on shipping costs, because the factories are in Indonesia and marketed in Indonesia, even though the brands are overseas. Don’t bother exporting from their own country. They will benefit from reducing shipping costs and workers will also benefit from being free from the sad status of unemployment.
In addition, in the Job Creation Law there is a cluster of business conveniences that can provide business legality quickly and easily. So that the unemployed eventually turned into entrepreneurs because the management of the bureaucracy was very easy. They don’t have to deposit 50 million rupiah like before. In addition, processing permits can also be done online, so it is very practical.
The convenience cluster tries to make the unemployed feel stuffy because they can’t get a new job, and finally choose to do business on their own. When the legality is in hand, they can freely express themselves and produce goods to be marketed in Indonesia. Legality is also very important when it comes to exporting manufactured products.
The Job Creation Law makes it easier for unemployed people to get new jobs, because the government will provide provisions in the form of training to improve skills. In addition, the unemployed will be able to work again, because there will be new labor-intensive companies to be built in Indonesia.
) * The author is a contributor to the Cikini Press Circle and Students

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