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Law Creates Work to Drive Indonesian Economic Growth During Pandemic


By: Ricky Subagja (Head of the Tangerang Regency Regional Literacy Movement)

The Job Creation Law is a law that not only protects employers, but also workers. Even the derivative regulations also contain articles of protection for Indonesian employees, so there is no need to worry about foreign workers, because the government prioritizes local workers.

When it was first inaugurated, the Job Creation Law was horrendous because the government was accused of being pro-foreign. The reason is that the law contains investment clusters that facilitate the entry of foreign investors, including foreigners who become employees. Foreign workers seem to haunt them because local workers are afraid of being evicted.

However, local workers need not be afraid, because so far there has been a misunderstanding in interpreting the Job Creation Law. It’s not that the government wants to attract as many foreign workers as possible. This misunderstanding needs to be straightened out, so that no one else labels the government too siding with foreigners. The Job Creation Law and its derivative regulations (government regulations) are very pro-local for local workers and will not necessarily be replaced by foreign workers.

Now the government continues to formulate regulations derived from Law Number 11 of 2020 concerning Job Creation. At least, there are 40 Draft Government Regulations (RPP) and 4 Draft Presidential Regulations (Rperpres) as implementing regulations for the Job Creation Law which are of concern to a number of ministries / agencies. Of course, 44 derivative regulations were formed so that the Job Creation Law could be applied effectively.

In addition, the Job Creation Law also encourages job creation, facilitates the opening of new businesses while at the same time restoring the national economy after being hit by the Covid-19 pandemic. The Job Creation Law is Indonesia’s most positive reform in the last 40 years in the areas of investment and trade. In addition, the Job Creation Law is an effective vaccine for national economic recovery and a breath of fresh air for economic recovery during the pandemic period.

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