By: Dian Ahadi )*
Omnibus work copyright or Work Draft Bill has been drafted, it aims to provide ease of business licensing and a conducive business climate, so it is expected that the ratification of the Work Draft Bill will later open up employment opportunities. Therefore, Omnibus Law is believed to be able to benefit employers and workers.
The Jokowi-Ma’ruf government has submitted a draft of the Ciptaker Bill to the DPR. The bill brings together 82 laws made by the government to boost investment growth and job creation.
Ida Fauziyah as the Minister of Manpower (Menaker) said, many articles of the Employment Creation Bill require more understanding from the community, one of which is about employment.
Ida emphasized that both the new rules on severance pay, hours of work, minimum wages, the mechanism of contract workers in the Employment Copyright Bill were made purely to improve the quality of Indonesian workers to support investment growth.
Chairperson of the Indonesian Chamber of Commerce (Kadin), Rosan Roeslani explained, the Cipta Karya bill was proposed as a step to overcome various economic and business problems, mainly related to the many overlapping regulations, and the low investment effectiveness.
The Employment Creation Bill is also expected to be a way out to overcome the unemployment rate, new workforce and the number of unemployed residents. At present, the number of MSMEs is quite large, but their productivity is still low.
Rosan said, the Employment Creation Bill was needed for the simplification and harmonization of regulations and permits, creating quality investments, creating quality jobs and sustaining workers’ welfare and empowering MSMEs.
He hopes, so that Indonesia can become a developed country with a sustainable economy and enter into the top 5 world economies, so that its instinct is able to get out of the middle income trap (Middle Income Trap) with a poverty rate close to 0%, into the 4th rank of World GDP with achievements 7 trillion US Dollars, and has a quality workforce.
Omnibus law is considered as a strategy of regulatory reform so that the arrangement is carried out at the same time against many laws and regulations. This is so that there will be no overlap between the testing of laws (PUU), the efficiency of the change process and also eliminating sectoral egos.
Although the title was changed from employment creation to work copyright, the substance of the draft has not changed, the Employment Creation Bill has been designed in such a way that there is a change in economic structure that is able to move all sectors to encourage economic growth from 5.7 percent to 6, 0 percent. Through job creation, increased investment and productivity followed by wage increases for workers or laborers.
On different occasions, Fakhrul Fulvian as an economic observer admitted that he welcomed the presence of the concept positively.
He considered, Omnibus law Ciptaker will affect the conditions of Indonesia’s investment climate in a better direction. However, he also said that the government must not forget the global economic conditions.
Fakhrul also said that investment in Indonesia has always been hampered by complicated regulations and bureaucracy. Not to mention, the unsynchronization between the central and regional governments that caused authority overlapping.
No wonder the World Bank released a report titled Ease of Doing Business in 2019 in 2019. In it, Indonesia’s ranking in ease of doing business is very saggy. Only ranked 73 out of 140 countries.
In fact, with only a few Asean countries, Indonesia is still far behind, where Singapore is ranked second, Malaysia (12), Thailand (21), Brunei Darussalam (66) and Vietnam (70).
Therefore, investment needs to be increased in line with the increase in Indonesia’s competitiveness in the eyes of the International. You do this by simplifying the licensing process which is complicated and must be made based on risk. Then, there must be certainty / standard in the process and licensing fees.
To realize the expansion of employment, the government certainly needs to spur economic growth, because one percent of economic growth will absorb around 300 to 350 thousand workers. Meanwhile, Indonesia’s average economic growth of 5 percent in the last 5 years.
Therefore the Employment Creation Bill is a strategy of the government to solve several problems that exist in Indonesia, ranging from business licensing, labor welfare, to employment.
)* The author is a student of the Muhammadiyah University of Tasikmalaya