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Revision of the Job Creation Law to Guarantee Investment and Protect the Workforce

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By : Princess Asikin )*

The government has accelerated the revision of the Job Creation Law after the Constitutional Court (MK) decision. The public is waiting for the improvement of the Job Creation Law which is able to guarantee investment while protecting the workforce.

The Job Creation Law is predicted to be able to overcome many problems by cutting regulations so that investors or potential entrepreneurs have no difficulty in building a business or investing their capital. However, the Law on Job Creation is still getting a note from the Constitutional Court so that the Law is revised with a two-year deadline.

Of course, the Job Creation Law is still in the stage of being perfected. Completion of the Copyright Act will further ensure investment certainty. This is because the investment cluster in this Act will not be abolished, because it is very important for Indonesia’s future. With this cluster, of course, there is a guarantee of security for foreign investors to start their business in Indonesia.

The President of the Republic of Indonesia, Joko Widodo, said that he would guarantee investment security for foreign investors. They can prove it for themselves, by looking at the achievement of investment in Indonesia, which is 9% per year in 2021. Thus, investors will believe that investment in this country is very profitable.

In addition, the improvement of the Job Creation Law also supports the provision of full salaries and bonuses and allowances for local workers. If workers are forced to be laid off, according to the Job Creation Act, workers will receive severance pay of 25 times their salary.

Moreover, issues related to severance pay are often discussed, because more than 70% of companies are absent from their obligations. Even though they should have paid the rights of former employees.

The Minister of Manpower, Ida Fauziyah, emphasized that the Job Creation Law was intended to strengthen protection for workers. The Job Creation Act also aims to increase the role and welfare of workers or laborers in supporting the investment ecosystem.

He considered, in addition to increasing the role and welfare of workers in supporting the investment ecosystem. The Employment Creation Law also continues to regulate the rights and protection of workers’ wages in accordance with the existing laws and regulations.

Professor of IPB Prof. Dr. Ir. Yanto Santosa, DEA said, when investment increases, employment opportunities will also increase, this is the purpose of the Job Creation Act, for the welfare of the community. However, in order to implement the Job Creation Law in accordance with the government’s expectations, including simplifying licensing regulations, encouraging investment ease and increasing employment opportunities, of course there are a number of conditions that must be met.

According to Yanto, the first prerequisite is that business actors must be used as equal partners, not as parties who are suspected or wary of. With this status, the form of interaction or relationship between the government and entrepreneurs will be mutually helpful and needy. The next prerequisite is that the type of business must be divided into two, namely businesses that are government initiatives or initiatives and businesses that are initiatives or initiatives of business actors.

For types of businesses that are government initiatives or initiatives, all permits should be managed by the government, so that business actors only need to carry out their business operations. Meanwhile, for types of businesses that are initiatives or initiatives of business actors, the licensing process is carried out by business actors with constant assistance from the government.

Then, he continued, there is a guarantee of legal certainty and consistency of policies or regulations between the central, provincial and district or city governments. The Law on Sweeping the Universe should be a formula to simplify synchronizing and trimming regulations because there are too many regulations issued at the central and regional levels that hinder business activities and job creation.

The current Job Creation Law does require revision, because it is conditionally unconstitutional. The maximum time limit of 2 years given by the Constitutional Court should be utilized as well as possible by the government and the DPR to re-complete the sweeping laws of the universe.

Certainty in investment is one of the capitals for Indonesia to revitalize the economic sector, because the more investment, the more industries will grow, so that local workers will be absorbed and eventually the wheels of the economy will turn again.

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

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