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The “Omnibus Law Ciptaker” Will Increases Labor Vacancies

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By: Alfisyah Kumalasari) *

The slowing down of the global economy on the one hand and the increase in the number of the workforce on the other are serious issues that must be resolved immediately. The government under the direction of President Jokowi also took the initiative to break the deadlock by simplifying regulation through the Omnibus Law Cipta Karya (Ciptaker) scheme. The presence of the Ciptaker Omnibus Law Bill is believed to be able to facilitate investment, drive the economy, and absorb productive labor in Indonesia.

The Omnibus Law embryo began with President Joko Widodo’s speech at the MPR Plenary Session in the context of the Inauguration of the President and Vice President for the 2019-2024 Period, on October 20, 2019 at the MPR. On that occasion, President Jokowi discussed efforts to build hardworking, dynamic human resources. The Government will invite the House of Representatives to issue the Employment Copyright Law which became the Omnibus Law to revise dozens of laws that hamper job creation and which hamper the development of MSMEs. In addition, investment in job creation must be prioritized and long procedures must be cut to accelerate economic growth.

                Investment to grow the national economy is an important point to absorb labor. As is known, the Central Statistics Agency (BPS) recorded the number of open unemployment in August 2019 of 5.28% or reaching 7.05 million people. The unemployment rate increased in number compared to August 2018 of 7 million people. In addition, each year the new workforce increases by 2 million people, so the Omnibus Law Ciptaker Bill urges it to be implemented

This Work Copyright Bill is the government’s good intentions to open as many jobs as possible for the people of Indonesia by creating a more comfortable and easier investment ecosystem. The government has an interest in maintaining a balance between the need for Job Expansion that requires Investment, and efforts to protect Workers (existing). So that in the context of creating new jobs, and increasing protection for workers, comprehensive regulatory reform is needed, including the employment sector. Therefore, the Work Cipta Bill cannot be seen only in terms of the interests of workers or employees who have found work now. But also what has to be seen is that there are 7 million unemployed people who now really need jobs.

The Government, through the Employment Bill, sees the need to simplify and provide legal certainty so that a good and comfortable investment ecosystem will be created, which in turn creates new jobs, not least in the property sector. Head of Reliance Sekuritas Research Lanjar Nafi said, the demand for the property sector is believed to continue to grow, especially with Omnibus Law, developers are given facilities so that consumers will also benefit.

Related to the existence of a handful of criticisms of the Omnibus Law Ciptaker, this has become commonplace. The criticism must also be conveyed in official channels so that it can be properly accommodated. But far more important, business actors, laborers and the government must have the same paradigm in responding to various challenges going forward. If not, then we will face the potential of investors turning to other countries that are all more competitive, and we are failing to create new jobs for people who have not found work now.

Reflecting on current conditions, the Omnibus Law Ciptaker urges immediate implementation. Even though the Omnibus Law on Ciptakerja still raises a few issues, especially related to the labor article, it does not become an obstacle to hinder the birth of the regulation.

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) * The author is a social political observer

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