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Job Creation Perppu is Urgently Needed by Indonesia


By: Lukman Keenan Adar )*

Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 or Perppu on Job Creation has just been signed by President Jokowi at the end of 2022. This Perppu is really needed by Indonesia because thanks to its presence, economic stability will improve, especially after being affected by Covid-19.

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The pandemic has changed everything and unfortunately there has been a slight shake-up in the economic sector, as well as the threat of a recession. Moreover, this condition also occurs globally. However, the government did not just give up because it had to keep working hard to overcome it, so as not to get mired in severe inflation or the second volume of the monetary crisis. One of the government’s steps is to formalize the Job Creation Perppu.

Trisakti University public policy observer, Trubus Rahadiansyah, stated that the Perppu on Job Creation is urgently needed by Indonesia. Not without reason, because the Job Creation Perppu is able to be a solution to the current economic recession and global challenges. As well as very capable of filling the legal vacuum needed by investors.

Trubus continued, Indonesia needed a large investment to build various needs according to the state budget. The existence of Perppu Ciptaker is strategic to face global challenges and economic recession. This rule is urgently needed to fill the legal vacuum, because investors really need legal certainty.

The 2023 recession prediction is a threat. Coupled with the geopolitical conflict that occurred between Russia and Ukraine, which has further exacerbated the post-pandemic situation and the threat of recession, so it is indeed important to take swift action to ratify the Job Creation Perppu.

The Perppu on Job Creation is urgently needed by Indonesia because there is a guarantee for investors so that they can invest in Indonesia safely. The economy can be stable when there are many investors coming in. Moreover, one indicator of a country’s progress is the amount of investment there. Therefore, the government issued a Perppu that can protect foreign investors, so that they will no longer hesitate to do business in Indonesia.

The Job Creation Perppu cuts complicated permits. So that foreign investors will easily get permission when they want to start a company in Indonesia. With this Perppu, permits can be taken care of online through an integrated system. The system will set up so that licensing is done quickly, in just a few working days.

Investors will not be afraid of being stymied by long and tedious bureaucracy. The reason is because they understand that regulations have changed and the Jokowi government has broken down by cutting bureaucracy, so it doesn’t beat around the bush.

Why is there a Perppu that is pro-investor? When there are investors, there will be a positive domino effect. Where did they come and build various factories with various fields in Indonesia. The economy grew because the business world became more dynamic and new factories appeared. Investors are sure to invest their capital because there is a guarantee from President Jokowi and the Perppu Cipta Kerja as a strong legal umbrella.

With so many investors, Indonesia will survive the threat of recession and rise from the effects of the co-19 pandemic. The reason is because this regulation attracts many investors and new factories and businesses emerge. The business world is becoming more dynamic and automatically adding jobs. People can work again and get a monthly salary. With this salary, it can be spent and the wheels of the country’s economy run fast.

Indonesia is emerging from the negative effects of the pandemic that has affected the country’s economy. Therefore the government is trying hard to stabilize the economy again. Therefore the Job Creation Perppu was passed and investors are welcome to come to this country. The Job Creation Perppu is really needed by Indonesia, which is struggling to improve its economy.

Meanwhile, the Job Creation Perppu is needed for Indonesian people, especially those with labor status. The Coordinating Minister for the Economy Airlangga Hartanto stated that the Job Creation Law benefits workers, because there is JKP (Job Loss Guarantee). JKP will be under BPJS Employment and the government will provide financial support to the institution. JKP shows that the government is not letting go and is still concerned about unemployment.

JKP allows workers who are forced to be laid off to receive guarantees in the form of money, recommendations for new jobs, and job training. JKP is listed in article 46A of the Job Creation Law. Employees are no longer afraid when they are forced to lose their jobs because they were saved by JKP.

JKP is something new, because usually people who are sent home only get severance pay, but now they are being provided with training to improve their skills. With job training, the skills of workers will increase. They no longer regret losing their jobs. But diligent practice and finally proficient.

Employees who were laid off then attended training and acquired new skills. They can then open their own business, armed with these skills. You can even recruit employees and become a boss. In this way, the number of unemployed will be reduced.

The Job Creation Perppu is urgently needed to support economic stability in Indonesia. When there is this Perppu, there is a security guarantee for foreign investors. In addition, the ratification of this Perppu is also to boost the country’s economy from the effects of the Covid-19 pandemic.

)* The author is a contributor to Persada Institute

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