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The Presence of the Job Creation Perppu Provides Many Benefits

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By :  Mika Putri Larasati )*

The Job Creation Perppu will provide many benefits to the people of Indonesia. This Perppu is important for the people of Indonesia, in the midst of a world economic situation that has just recovered from the effects of a pandemic for almost 3 years. With MSME, employment and investment clusters, it will be very profitable for all Indonesian people.

The Job Creation Perppu was ratified at the end of 2022. It is hoped that the implementation of this Perppu will become a stronghold for the national economy. Where there is a threat of a recession in 2023 and Indonesia is also still struggling to overcome the impact of the co-19 pandemic for almost 3 years.

The presence of the Job Creation Perppu will provide many benefits and overcome the impact of the global recession in Indonesia. President Jokowi stated that it was the threats of uncertainty that caused us to issue the Perppu, because it was to provide legal certainty, a legal vacuum, which is in the perception of investors both inside and outside. That is the most important, because in 2023 our economy will depend heavily on investment and exports.

A copy of the complete contents of the Job Creation Perppu has now been published. The Perppu contains 1,117 pages and 186 articles. Following are some of President Jokowi’s considerations for issuing the Job Creation Perppu: first, to create a prosperous, just and prosperous Indonesian society based on Pancasila and the 1945 Constitution, the State needs to make various efforts to fulfill citizens’ rights to work and a decent living for humanity through job creation.

Second, job creation is expected to be able to absorb the widest possible Indonesian workforce in the midst of increasingly competitive competition and the demands of economic globalization as well as challenges and global economic crises that can disrupt the national economy. 

Third, it is necessary to adjust various regulatory aspects related to facilitating, protecting and empowering cooperatives and micro, small and medium enterprises, improving the investment ecosystem, and accelerating national strategic projects, including increasing the protection and welfare of workers, to support the Job Creation Perppu.

Next, arrangements relating to facilitation, protection and empowerment of cooperatives and micro, small and medium enterprises, enhancing the investment ecosystem, and accelerating national strategic projects, including increasing the protection and welfare of workers spread across various sectoral laws are currently unable to meet the needs. the law for the acceleration of work copyright so it needs to be changed.

The fifth is increasing the protection and welfare of workers and efforts to change regulations related to facilitating, protecting and empowering cooperatives and micro, small and medium enterprises, enhancing the investment ecosystem, and accelerating national strategic projects. Sixth, that in order to implement the Constitutional Court Decision Number 91/PUU-XVIII/2020, it is necessary to make improvements through replacing the Law on Job Creation

In a sense, there are many benefits from the Job Creation Law because it is not only useful for the government. But also all Indonesian people, both those with status as entrepreneurs and workers. There is protection for workers because they get a minimum salary of UMP (provincial minimum wage) and the value will always increase every year.

If workers have received a minimum salary of the UMP, there is no need to be afraid because the duration of working in a company is more than a year and their income will continue to increase. He will be more prosperous and not afraid that his salary will even decrease after the Job Creation Perppu is passed and enforced in Indonesia.

The Job Creation Perppu can create a conducive investment climate while at the same time encouraging additional jobs. When this Perppu is issued, it becomes a guarantee for investors so that they will invest in Indonesia.

Meanwhile, the Coordinating Minister for the Economy Airlangga Hartarto stated that the Job Creation Perppu was a continuation of the Job Creation Law which the MK had mandated to revise until November 2023. However, we know that right now the world is facing uncertainty, be it in terms of war. which have not been completed, then the influence of climate change and disasters.

Airlangga continued, as an effect there was a crisis both in the food sector, in the energy sector, and in the financial sector. Therefore the Work Creation Perppu was passed to address these problems, especially related to investment which is targeted to reach IDR 1,400 trillion in 2023. 

The Job Creation Perppu will become a stronghold for the national economy and overcome economic conditions in 2023 which will be filled with high uncertainty. in an abnormal economic situation, ease of doing business and a better climate are needed. 

Thus, through the Job Creation Perpu it is hoped that domestic investors will be able to expand their business and that MSMEs will continue to do business. In addition, the Government together with the Financial Services Authority have also extended credit restructuring for MSMEs until March 2024.

The presence of the Job Creation Perppu provides a lot of benefits for the Indonesian people, both those with worker and entrepreneur status. Both benefit because there are various clusters that simplify business regulations in Indonesia and the payroll of employees. 

)* The author is a contributor to Nusantara Reading Room

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