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The Work Creation Law on the Negative Impact Solution of the Covid-19 Pandemic

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By: Putu Prawira ) *

Since Covid-19 became a pandemic, the employment sector has been one of the most affected so that many workers and employees have been sent home, the unemployment rate has also increased in line with the PSBB policy. Therefore, policies are needed that can absorb labor, especially when the pandemic has not ended, such as the Job Creation Law.

Coordinating Minister (Menko) for the Economy Airlangga Hartarto, who stated that the Job Creation Law could help reduce the negative impact of Covid-19, especially in the employment sector. Airlangga explained that the Job Creation Law would be a bridge between the short-term Covid-19 handling program and long-term structural breakforms .

              As a central player in the Indonesian economy, he said, the government provides protection facilities, empowerment of incentives, and financing for MSME players.

              He also explained about the benefits of the Job Creation Law for MSMEs, including the ease of doing business licensing with only the registration process, obtaining a free halal certificate and the establishment of a company or PT that could be established with one person with self-determined capital.

              In addition, the Online Single Submission (OSS) which is targeted to be implemented in July 2021 will simplify and simplify the business licensing process.

              Another government effort is to boost economic growth, added Coordinating Minister Airlangga Hartarto, by passing various derivative regulations on labor and establishing the Indonesia Investement Authority (INA).

              The government has established INA as a long-term financing alternative. To encourage infrastructure development, the government has also consulted with 50 companies and potential strategic partners.

              Coordinating Minister Airlangga said the government had prepared an additional budget of Rp. 60 trillion as INA capital to realize its activities.

              He revealed that in early 2020, an initial capital of Rp 15 trillion had been allocated and in 2021 an additional Rp 60 trillion was prepared and it is hoped that in the first quarter, the Indonesia Investment Authority can realize this activity.

              Through these various efforts, the Coordinating Minister for Airlangga is optimistic that 2021 will be a turning point for the problems caused by the pandemic and hopes for the participation of stakeholders to ensure that the various policies that have been prepared can be optimally operationalized.

              Previously, Minister of Finance (Menkeu) Sri Mulyani said that the government had worked hard in drafting the Job Creation Law to expand employment opportunities.

              This is in line with the passing of the Job Creation Law which will bring a lot of investment in Indonesia.

              Before the Job Creation Law was formulated, the government had also identified regulations relating to authority and ease of licensing.

              This is because in terms of authority, there are always obstacles in the licensing process. Overlapping powers from the level of the president, ministries and institutions, the industrial sector, to local governments are factors that inhibit investment and must be broken down.

              If these regulations are summarized and investment in Indonesia develops, it is certain that jobs will be opened.

Meanwhile, the Chairman of the Indonesian Legal Aid and Human Rights Association (PBHI) Rahmat Soekarno said that the Job Creation Law which was passed by President Joko Widodo is a very good legal product, especially in an effort to open business opportunities for the community.

              Therefore, this should be supported by all circles. Because of all products, the Job Creation Law is very good for opening job opportunities for the community.

              According to Rahmat, during the Covid-19 pandemic, Indonesia was making efforts to improve the economy due to the health crisis which had an impact on national economic conditions. In the first semester of 2021, there are growth targets that the government wants to achieve.

              He said, in the first semester of 2021 Indonesia will make economic improvements, in the second semester it is predicted that the Indonesian economy will return to normal with an average growth rate of 5% as usual. Therefore, the government’s efforts to improve economic conditions through the implementation of the Job Creation Law must be supported together.

              The Negative Impact of the Covid-19 Pandemic requires a strategy to deal with it, one of which is by establishing strategic regulations to create jobs, so that employees or workers who lose their jobs can still earn income.

) * The author is a contributor to the Cikini Press and Student Circle

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