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The Job Creation Law Expands Job Opportunities for the Young Generation


By : Kyara Savitri )*

In the midst of the demands of economic globalization and strong competition between developing countries, the government continues to try to find ways to face these challenges. The Job Creation Law could be the most effective answer to dispel all the uncertainty that is currently happening.

Law (UU) Number 11 of 2020 concerning Job Creation which is currently in effect aims to increase competitiveness and national economic growth. The regulations also push Indonesia towards becoming a high income country  .

Economic observer, Dendi Ramdani, said that the Job Creation Law is also considered an important step in avoiding the  middle income trap  which can hinder the development of developing countries. According to him, the issuance of the Job Creation Law is part of the structural reform of the Indonesian economy to avoid the trap of middle -income countries in the future.

“This step is the key to increasing the ability to master technology, encouraging innovation, strengthening business certainty, and creating a more conducive investment climate through improving the quality of the rules and regulations under it,” he said.

Reflecting on several countries around the world shows that if a country fails to carry out structural transformation well, then the country will not achieve high-income status. On the other hand, the country will fall into  the middle income trap , which means that economic growth will slow down, productivity will decrease, and per capita income will decrease.

The Indonesian government is carefully formulating the Job Creation Law so that it can become a structural reform in the economic sector. Dendi said, Indonesia is currently in a race against time to achieve its goal of becoming a high-income country and has around 17 years to make it happen.

In its implementation, the Job Creation Law also makes it easier for the younger generation to become entrepreneurs, which can later improve the regional and national economy. There is a reason the younger generation needs to become an entrepreneur because there are only 500 thousand job opportunities every year, then current technological developments which make it easier for the younger generation to become entrepreneurs, and the last is to take advantage of advances in information technology which creates various new business advancement fields while eliminating many business fields others because they are replaced by technology. Apart from that, the knowledge that the younger generation has is very broad, so there will be many entrepreneurial innovations emerging and of course this can help other people who don’t have jobs. 

Chair of the Socialization Strategy Working Group for the Job Creation Law (UU Ciptaker), Dimas Oky Nugroho, said that entrepreneurship can be started on a small scale through Small, Micro and Medium Enterprises (MSMEs) or running contemporary businesses such as cafes, culinary businesses and other products that can produce added value. economy. 

He said the younger generation has a community of networks that can expand the existence of the business they are involved in. Moreover, with the Job Creation Law, institutional aspects are easily fulfilled, making it easier for entrepreneurs  to  get access to capital, partnerships and other forms of assistance from the government and private sector in business development.

The Job Creation Law makes it easier for the younger generation to establish and run MSMEs. The ease of doing business in the Job Creation Law needs to be accelerated to meet the needs of young people because MSMEs absorb 96.9 percent of jobs in Indonesia, he said.

In this way, the current period is the most valuable moment for Indonesia to accelerate development and economic growth. With a detailed understanding of the Job Creation Law, it is hoped that the younger generation can achieve better job opportunities, develop relevant skills, and play an active role in advancing the country’s economy.

)* The author is a student at the Faculty of Economics 

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