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Job Creation Law as a Definition of Creating Comfort for the Community


By : Kyara Savitri )*

With the presence of the Job Creation Law (UU), all provisions in it officially become legal force. The Constitutional Court (MK) also assessed that the formation of these regulations had fulfilled the formal principles of law formation. The big mission contained in the Job Creation Law, if analogous, has the direction of eradicating poverty in Indonesia with the main goal in life, namely achieving happiness.

According to Gadjah Mada University economics expert, Prof. DR. Gunawan, humans can achieve happiness if their lives are comfortable. The foundation of comfort is not being hungry. In order not to be hungry, people have to work. To work, you need employment opportunities that can accommodate the workforce. “The philosophy of life’s goal is simple, to be happy,” he said.

The presence of the Job Creation Law also aims to simplify bureaucracy, making business licensing easier. Then the business license will produce many entrepreneurs who will create employment opportunities. As one of the academics involved in drafting the Job Creation Law, he admits that up to now a number of parties have opposed the existence of this regulation because they do not understand its main aim, namely alleviating poverty.

Therefore, the mindset must be changed first. That, if humans want to be happy, they must be able to support themselves, they must work so they can eat, they can achieve prosperity. A business that generates employment cannot operate alone. It requires cooperation with many parties, which is why partnerships are the main key to achieving the targets of the Job Creation Law.

Gunawan explained that it is very important to meet food needs together, as well as make the village prosperous. “Village-Owned Enterprises (BUMDes) emerged as an embodiment of partnership between village residents, as well as partnering with many other parties so that village production could be marketed more widely, thus leading to an improvement in the village economy.

In the Job Creation Law, there are a number of articles that specifically regulate partnerships between large and medium businesses with MSMEs. Meanwhile, the aim is to strengthen the MSME sector and encourage inclusive economic growth.

First, facilitate access to financing. Two, developing the capacity of MSMEs. Three, access to a wider market. Four, provision of resources and technology. Five, increasing the economic welfare of the community.

Likewise, the President of the Indonesian Automotive Institute (IOI), Made Dana Tangkas, stated the importance of building partnerships to raise the class of MSMEs. For example, the Toyota automotive company from Japan, before going global, came from the MSME business. From a weaving company it turned into an automotive company.

Apart from that, in the Job Creation Law there are provisions for severance pay for employees who are victims of mass layoffs (PHK) which have occurred a lot recently. It is stated that in the Job Creation Law, companies are obliged to provide severance pay, long service awards and compensation for employees who are laid off either because of the company’s financial condition or entering retirement. However, the value is lower than the previous regulations when measured in terms of cash value. This change in cash value is in line with the new formulation for calculating the amount of severance pay for employees who are laid off. Either due to retirement or the company reducing human resources.

Until now, the Job Creation Law has always been a hot and controversial topic since the beginning of its discussion because many parties are worried that the Law will not work properly, even though you can see that there are many articles in it that prioritize the welfare and happiness of the community, especially workers, retirees and victims of layoffs.

So, the existence of the Job Creation Law is very necessary for national interests, starting from facilitating business permits so that it creates jobs which have an impact on reducing unemployment and poverty levels in the country, then various companies are also asked to collaborate with many parties so that the targets of the Job Creation Law are achieved .

Let’s get rid of all worries about the ratification of the Job Creation Law because in fact this law is an anticipatory step for the government in facing various kinds of global uncertainty and legal certainty for the community is more guaranteed.

)* The author is an observer of the People’s Economy

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