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The Omnibus Law on Job Creation Needs to Be Ratified Immediately

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By: Zakaria)

The government has made a breakthrough to cut hyper- regulation, which currently hinders investment. The draft regulation needs to be passed immediately in order to accelerate the recovery of the national economy which was affected by the crisis due to the Covid-19 pandemic.

Coordinating Minister for the maritime and Investment, Luhut Binsar Pandjaitan in a speech at the UI Faculty virtually saying that the Draft Law (Draft) Copyright Labor Law Omnibus be ratified in September.

He explained that this policy could be a weapon for Indonesia to become a very competitive country in the future .

              His party also finalized the omnibus law , because the omnibus law is one of the weapons to make Indonesia more competitive in Asia.             

              On a previous occasion, Coordinating Minister for the Economy Airlangga Hartarto had said that the discussion of the Omnibus Law on the Job Creation Bill had reached 90% progress.

              With this discussion that reached 90%, Airlangga said that various strategic issues had received approval from the political parties that participated in the discussion.

              On different occasions, the Legislation Body ( Baleg ) of the House of Representatives (DPR) of the Republic of Indonesia emphasized that the Job Creation Bill (RUU) is aimed at creating as many jobs as possible.

              The job opportunities that are expected to be created are planned to prioritize local workers according to the skills needed.

              Member of the DPR RI Baleg Ali Taher said, the Omnibus Law on the Job Creation Bill was aimed at the interests of society and the nation. The streamlined licensing regulation through this regulation is expected to attract foreign investors and MSMEs as well as other new businesses in Indonesia.

              He believes that the ease of investing can create new jobs and move the wheels of the national economy.

              He hopes that with this Job Creation Bill, the wheels of the economy can continue to move, and the national economy can grow and be well planned.

              He also said that the DPR RI Baleg also encouraged the government to make specific rules that would make it easier for local job seekers to get access to jobs.

              He also felt confident that local workers could compete with foreign workers to fill jobs that required expertise. Therefore, Ali called for the people who masu childbearing age in order to prepare themselves to improve their skills as field work occupied.

              Meanwhile, the Demographic Institute of the University of Indonesia considers that the Job Creation Bill can anticipate Indonesia’s demographic bonus in 2020-2030 so that it does not become a threat to the national economy.

              Head of the Demographic Institute of the University of Indonesia (UI) Turro S. Wongkaren said we would have a large productive population. This must be absorbed in the field of work. If not then this will be a demographic disaster and threaten the economy. So we hope that the omnibus law can anticipate all of this.

              According to him, if labor regulations are not improved, then Indonesia will not be able to provide sufficient employment opportunities for a productive population.

              We need to know that the workforce in February 2020 was 138 million workers, around 132 million workers were workers and 6 million were unemployed. Each year, around 2.7 million people enter the workforce.

              So you can imagine how many Indonesians need jobs. Moreover, this figure was obtained before the Covid-19 pandemic, now this number could be increasing because of the many factories or industries that are efficient (laying off) their employees.

              He said, currently the Manpower Law in Indonesia. Referring to Law Number 13 of 2003. However, the law is considered irrelevant at this time.

              Turro said the demographic bonus is basically a supply of more labor than the previous period.

              Therefore, it is necessary to have regulations that can protect and regulate manpower in Indonesia so as not to harm various parties, namely workers and the company concerned.

              If the demographic bonus is not used properly and is not balanced with the demand side then something that might happen is an economic disaster .

              Apart from workers, the micro, small and medium enterprises (UMKM) sector also needs to be part of the Job Creation Law to expand job opportunities if Indonesia wants to take advantage of the demographic bonus.

              This month, of course, it is hoped that it will be able to become a milestone in the revival of the national economy, with the passage of the Work Creation Omnibus Law Bill, of course we hope that the national economy will increase even though the status of the Covid-19 pandemic has not been revoked.

) * The author is a netizen living in Bogor

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