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Job Creation Law for the sake of Economic Recovery and People’s Welfare

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By: Aldia Putra )*

The Covid-19 pandemic has not only weakened the public health sector, but also triggered a crisis in the economic sector. The public also hopes that the ratification of the Job Creation Law can trigger economic recovery and the welfare of the people affected by Covid-19.

During the Covid-19 Pandemic, of course we hope that the foundations of the Indonesian economy will increase in terms of productivity and competitiveness.

The President of the Republic of Indonesia, Joko Widodo, signed the omnibus law on the Job Creation Act on Monday, November 2, 2020.

The Draft Job Creation Law has also been uploaded on the official website of the Ministry of State Secretariat (Kemensetneg) and can be accessed by the public.

Thus all provisions in the Job Creation Law came into effect since November 2, 2020. This is certainly a point of hope for the Indonesian nation so that the economic sector and people’s welfare will increase.

Finance Minister Sri Mulyani stated that the Omnibus Law or the Job Creation Law also complements the reform steps that have been taken by the government in the fields of education, health, and state spending.

The people’s welfare targets include inflation targets, economic growth, job creation, poverty reduction, digging the human quality index and inequality.

Sri Mulyani also ensured that she would continue to maintain fiscal policy in order to achieve social welfare targets.

He also emphasized that the Ministry of Finance will continue to coordinate with other ministries and agencies to maintain the condition of society and the economy in difficult times due to this pandemic crisis.

As a new breakthrough in the field of law, the Job Creation Law can be a legal instrument to boost Indonesia’s economy amidst the global economic downturn. These strategic opportunities and development opportunities can be taken by Indonesia and must be maximally utilized.

It is hoped that the ratification of the Job Creation Law can unravel the complexity of manpower issues in the country. The Covid-19 pandemic can be a momentum to make improvements and rearrangement of various problems in the economic sector so that Indonesia does not lose momentum to continue to rise after the Covid-19 pandemic.

The work copyright law is also expected to bring an increase in investment of 6.6% to 7.0% in order to build new businesses and develop exixting businesses.

President of the Confederation of National Workers Unions, Ristadi, said that in principle the Trade Unions agreed to the government’s efforts to debureaucratize, facilitate investment permits to increase economic growth and create jobs, but should not ignore the protection and welfare of workers in Indonesia.

The Job Creation Law has also received support from the World Bank / World Bank. The World Bank states that the Job Creation law is a major reform effort to make Indonesia more competitive and support Indonesia’s long-term aspirations to be a prosperous society.

By removing major restrictions on investment and providing a signal that Indonesia is open to business, this law can help attract investors, create jobs and help Indonesia fight poverty.

The World Bank is also committed to working with the Government of Indonesia on these reforms, towards economic recovery and a better future for the Indonesian people.

Apart from the World Bank, the British Investor Association which is part of the British Chamber of Commerce in Indonesia (BritCham) also positively welcomed the Job Creation Law or the Omnibus Law.

Executive Director of Brit-Cham, Chris Wren, assessed that the pros and cons of the law were the initial implications of a change. This will make Indonesia more competitive than other Asean countries such as Vietnam.

Wren also stated that so far investment from the UK has created more than 1.5 million jobs in Indonesia.

Agus Gumiwang as Minister of Industry (Menperin) said that the Job Creation Law could simplify the process of accelerating the rebooting of the Indonesian economy due to the impact of the Covid-19 pandemic.

According to him, the Job Creation Law is also designed to provide a lot of facilities for business actors including facilities for MSMEs. Where he sees that the situation of the startup industry in Indonesia has been dominated by those who are still beginners or at the level of Micro and Small Enterprises (MSEs).

He said, with the work copyright law, MSMEs in it would be greatly helped by the law.

It is hoped that the ratification of the Job Creation Law will be a breath of fresh air for entrepreneurs, investors and workers. Where the trimming of regulations summarized in the Omnibus Law, is considered able to accelerate licensing regulations in starting a business so that it will have an impact on labor absorption and increase people’s purchasing power.

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

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