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Perppu on Job Creation Guarantees Workers’ Welfare and Strengthens Industrial Competitiveness


By: Naufal Putra Bratajaya )*

The existence of the Job Creation Perppu is able to further guarantee the level of welfare of workers in Indonesia, including also being able to further strengthen their competitiveness in today’s industry which is becoming increasingly stringent due to globalization.

The President of the Republic of Indonesia (RI), Joko Widodo has officially issued Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation (Ciptaker) on Friday 30 December 2022. According to him, the current situation in the world is not good.
Not only because of the situations and circumstances that occur in the world, but the existence of completely uncertain conditions in the world can also be a threat to Indonesia. On that basis, the Government of the Republic of Indonesia then issued a Job Creation Perppu to immediately replace the position of the Job Creation Law which had previously been declared conditionally unconstitutional by the Constitutional Court (MK).
With many risks and threats due to global conditions full of uncertainties, according to President Jokowi the issuance of this Perppu for Job Creation is able to provide legal certainty and be able to fill a legal vacuum, which is then able to influence the perceptions of investors both from within and from abroad. For him, the trust of investors to continue investing in Indonesia is very important because the country’s economy in 2023 will be very dependent on export and investment activities.
Apart from that, there are also several considerations from President Jokowi in issuing the Job Creation Perppu, one of which is to be able to realize the goal of forming the Indonesian State Government and create a more prosperous, just and prosperous Indonesian society based on Pancasila and the Constitution ( UUD) of the Republic of Indonesia of 1945. So indeed the state really needs to take various steps and efforts to fulfill the rights of its citizens to work and a decent living for humanity through the Job Creation Perppu.
Another urgency for the issuance of the Job Creation Perppu is also related to the hope to continue to ensure the widest possible absorption of Indonesian workers in the midst of increasingly competitive competition and demands for economic globalization as well as the challenges of the global economic crisis which can disrupt the national economy.
Furthermore, the existence of Perppu Number 2 of 2022 concerning Job Creation is also able to continue to support adjustments to various regulatory aspects related to convenience, protection and empowerment of cooperatives and micro, small and medium enterprises, as well as being able to improve the investment ecosystem and accelerate national strategic projects. including an increase in the protection and welfare of workers.
Meanwhile, Member of Commission XI of the House of Representatives of the Republic of Indonesia (DPR RI), Princess Komarudin also said that the essence of the Job Creation Perppu is being able to guarantee the welfare of workers. This is because the rules issued by President Jokowi show partiality towards workers.
One of the examples he gave was related to the formula for calculating the minimum wage, which is not only based on inflation and economic growth conditions, but also considers people’s purchasing power.
So with these many considerations, according to Puteri Komarudin, there is flexibility for the regions to adjust the minimum wage according to the economic conditions of each region and to be able to maintain fairness and partiality for the community.
Then there are other policies that have undergone adjustments, namely related to the outsourcing policy which has also been adjusted so that it only applies to certain sectors at the request of the trade unions, this is not as wide open as in the previous Job Creation Law. Also included, these sectors will be regulated in government regulations.
The member of Commission XI DPR RI also explained that when there are workers who experience termination of employment (PHK), then in the Job Creation Perppu they will be given protection through a job loss guarantee provision of 45 percent of salary for six months and provided training for ‘reskilling’ .
There are many things that benefit these workers, including the existence of the Job Creation Perppu which is able to become legal certainty according to Puteri Komarudin can immediately have many positive impacts on the investment climate and be able to continue to maintain Indonesia’s economic performance in 2023 which is full of challenges.
It is undeniable that in today’s era, competitiveness in industry is becoming increasingly stringent, therefore it is urgently necessary to have a set of rules that are able to continue to guarantee the welfare of the workers. So that the efforts of the Government of Indonesia in issuing the Job Creation Perppu are able to answer all these challenges and are indeed very pro-Workers.[]

)* The author is the Inti Media Institute

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