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The Job Creation Law Protects Workers and Prospective Workers


By: Made Raditya

The inauguration of the Job Creation Law brought a stir, because there were demonstrations that rejected it. Even though they do not yet understand that this law not only benefits business people, but also workers, even prospective workers. Because there are new facilities that can be enjoyed by them.

The situation in the world of work was not very conducive during the Covid-19 pandemic, because there are companies that have applied salary cuts, ranging from 25% to 50%. These cuts had to be made so that they could survive in an unstable economic condition. Employees inevitably have to accept it, rather than the company shaking and laying off all its employees.

On the other hand, there are also employees who have to be laid off because the factory’s financial condition is already bankrupt. They are busy looking for a new job so that the kitchen smoke will come back. All roads are traversed, from reading job advertisements in newspapers, to sites such as Jobstreet.

The government is trying to prevent this situation from happening again, because workers and prospective workers are Indonesian citizens whose financial stability must be maintained. Therefore, in last October the Job Creation Law was promulgated. This law has various articles which are beneficial to both workers and job seekers.

Peter Abdullah Redjalam, director of a research institute, stated that the Job Creation Law has a perspective, aimed at both workers and prospective job seekers. The reason is because in this law there is a guarantee for severance pay. In this sense, workers, even though they are sent home, will still receive their rights and are not fooled by elements in the company.

In addition, the Job Creation Law also states that workers who are sent home will receive JKP (job loss guarantee). Apart from the right to receive severance pay, they also receive new skills. So that you can open a new business with this skill capital.

In the Job Creation Law there is an investment cluster that can help prospective workers, because it has a positive domino effect. When the investment climate in Indonesia improves, it will attract foreign investors. So that they are excited to invest in this country, and build new factories.

The factory to be built is a labor-intensive industry. So it takes a lot of new employees. Prospective workers will be enthusiastic about applying there and can have status as employees again. They are relieved to finally get a monthly salary, so they are not confused when their child’s milk runs out.

The Job Creation Law is also useful for workers, as they will get an annual bonus from the company. The amount of course depends on the period of service. If he has worked for decades, of course the bonus will be even greater. Bonuses make workers relieved, because they can be additional money for shopping or put into savings.

The nominal UMK in the Job Creation Law was a polemic, because the term was changed to UMP (provincial minimum wage). But they don’t have to worry, because the governor who determines the UMP will of course act wisely and determine the salary according to their needs. So they are not afraid that the amount of salary will decrease drastically.

UMP is also enjoyed by new employees. So when an employee has worked for more than 2 years, according to the rules, then he gets a salary above the UMP. If the salary is not suitable, then he can report to the Manpower and Transmigration Office, so that it is thoroughly investigated and gets his rights.

The Job Creation Law is very useful, both for workers and prospective workers. This law stipulates that workers get all their rights, starting from a salary according to the UMP, an annual bonus, to severance pay and guarantees of losing their job if they are sent home. In addition, the Job Creation Law also encourages investors to enter Indonesia, thus opening many new vacancies.

(The author is a contributor to the Cikini Press Circle and Students)

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