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The Job Creation Law Opens Opportunities for Labor Absorption

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By: Dena Aulia) *
Unemployment is a big problem in Indonesia. The government is trying to overcome this with the Job Creation Law, because there is an investment cluster and ease of doing business. So that many factories will be built, both by local entrepreneurs and foreign investors. People will work there and the number of unemployed will decrease.
The covid-19 pandemic has increased the number of unemployed people. Many have lost their jobs because the companies they work for are losing money, as a result of the decreasing purchasing power of the people. Even before the pandemic, many unemployed people had difficulty finding work.
To reduce the number of unemployed, the solution is the Job Creation Law. This law is not just words on paper, but it will be implemented (along with derivative regulations), so that people’s lives will improve. Because in this law there is an MSME cluster, ease of doing business, and an investment cluster, which creates a positive domino effect on prospective employees.
Rahmat Soekarno, Chair of the Protection of Legal Aid and Human Rights in Indonesia, explained that the Job Copyright Law is a legal product that opens job opportunities for the community, so it must be supported by all groups. Including legal practitioners.
The Job Creation Law will reduce unemployment in this way: the existence of an investment cluster will attract foreign investors. They are guaranteed the convenience of doing business in Indonesia, then invest by building labor-intensive industries. When this factory was inaugurated, it would absorb labor, because they needed new employees.
The positive domino effect of the Job Creation Law continues, because the communities around industrial estates will also benefit. They can open a shop because employees need lunch, some are in the business of storing motorbikes, laundry businesses, and so on. So that the people there are no longer unemployed, but do business, because they already have the right target market.
The entry of foreign investors does not mean that 100% use foreign workers. This is an issue raised by the unscrupulous. In fact, foreign workers who enter, under the Job Creation Law, only serve as supervisors or professional workers. Meanwhile, for ordinary employees, it is filled by Indonesian citizens.
Rahmat continued, the Job Creation Law would improve Indonesia’s economic conditions. This is because the government will focus on improving the national economy, in the first half of 2021. In that sense, when the country’s financial condition improves, even growing more than 5% per quarter, it will keep Indonesia away from recession status.
Recession and economic crisis are a scourge that haunts almost every country affected by the covid-19 pandemic. We certainly do not want to feel bitter nostalgia like in 1998, when the price of basic necessities rose dramatically, goods were hard to find on the market, and unemployment rose sharply. Therefore, everyone is obliged to support the implementation of the Job Creation Law.
After avoiding recession, the government’s focus is to reduce unemployment, because people need jobs to survive. When they have a monthly salary, their purchasing power will increase. In effect, the wheels of the economy will turn again, and we will be free from the status of the financial crisis.
Therefore, the implementation of the Job Creation Law must be fully supported by the community. Don’t anyone believe in hoaxes about this law, which is said to be the capitalist government, does not listen to the people’s voice, etc. Due to the fact, the Job Creation Law was made for the welfare of the community.
The Job Creation Law will create many new jobs and reduce the number of unemployed, because investors who enter will build new factories. They need employees, and the slots will be filled by Indonesian citizens, not foreign workers. We must support the implementation of the Job Creation Law, so that people’s lives can improve.
) * The author is a contributor to Pertiwi Media

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