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Perppu on Job Creation Does Not Detriment to Society


By : David Falih Hansa )*

The Government Regulation in Lieu of a Job Creation Law (Perppu) which was just issued at the end of 2022 is guaranteed not to harm the community. The reason is because workers’ rights are still given, from holidays to salaries. This Perppu is very important to protect investors so that investment goes smoothly, then the community benefits because employment opportunities increase.

After the Perppu on Job Creation was issued, pros and cons arose because it was considered sudden. Even though in fact the government has planned it carefully and this Perppu has been installed as a substitute for the Job Creation Law. The Job Creation Perppu is guaranteed not to harm the community because workers’ rights still exist and there are no changes for the worse.

Coordinating Minister for Political, Legal and Security Affairs Mahfud MD stated that the criticism occurred because the public had not studied the Job Creation Perppu in its entirety. There are also those who read the headlines without reading the contents. However, he invited the public to discuss and socialize the Job Creation Perppu.

This means that if someone accuses the Perppu on Job Creation of harming the community, then they are gravely mistaken. The reason is because this Perppu is designed to benefit Indonesian citizens, both workers and employers.

The public is asked not to just read news about the Job Creation Perppu from incompetent media or even just read the title and then draw their own conclusions. This is very dangerous because currently many online media use click-bait tricks, where the news headlines are sensational but the content is different from the title. If people make their own conclusions, it will cause confusion.

The public should study and read the original manuscript of the Job Creation Perppu on the government’s official website, and it can be accessed for free. By studying paragraph by paragraph of this Perppu, they will understand that regulations are enforced to benefit the community.

If the public studies the Job Creation Perppu from the original text on the government’s official website, they will understand this regulation. The Perppu is designed for Indonesia’s future because it is profitable for investors. If the investment world benefits, then the community will also benefit because the industry in Indonesia is getting more advanced and automatically opens up many new job vacancies.

Perppu Cipta Kerja must be read on the official website because if not there are many versions circulating in cyberspace and it could be a hoax or just a draft that is not final and has not been approved by the Indonesian Parliament. Don’t let people be fooled by fake versions. Therefore they are obliged to increase their internet literacy in order to look for genuine Perppu sources, not fake ones.

In the Job Creation Perppu it is very beneficial for the community because they still get the right to rest, namely 1 or 2 days off. Depends on each company’s policy. 2 days off a week can be given, provided that a minimum of 40 hours of work in 5 days has been met.

Then, the Job Creation Perppu is also beneficial because workers are still entitled to a monthly salary. The amount of salary depends on the UMP (provincial minimum wage) in the area. The UMP is the minimum salary so employees who have worked for more than a year must be paid more than the nominal UMP.

When workers are forced to be laid off, they are also still entitled to severance pay, based on the regulations in the Job Creation Perppu. Severance pay must be given because if not, the employer will receive a stern reprimand from the Ministry of Manpower.

Meanwhile, economic observer Esther Sri Astuti stated that the Job Creation Perppu provides legal certainty for investors. Especially when they want to invest in Indonesia. Legal certainty is very important especially next year is a political year.

In a sense, the government ratifies the Job Creation Perppu at the end of 2022 because there are benefits. In 2024 there will be elections and before this political year there must be legal certainty for investors, especially foreign investors. Before the president changes, there must be a clear legal umbrella to protect investors in Indonesia.

If investors benefit, the community will also benefit. The reason is because the world of investment will make the economy grow rapidly. Investment from foreign entrepreneurs will make the business world more dynamic without having to owe the bank.

The country’s economy is being revived after almost 3 years of being hit by the negative effects of the Covid-19 pandemic. Therefore the government is trying hard to advance Indonesia. One of them is by passing the Job Creation Perppu.

The Job Creation Perppu is a new regulation that replaces the position of the Job Creation Law. The public need not worry because this Perppu will make the future of Indonesian citizens better. The reason is that the Job Creation Perppu provides legal certainty to foreign investors so that they are more confident about investing in Indonesia, and making economic growth even better.

)* The author is a contributor to Persada Institute

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