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The Job Creation Law Increases Protection of Workers

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By : Samuel Christian Galal )*

It was once considered that the Job Creation Law/Law did not provide protection for workers, so an assumption emerged that the law was not fully in favor of workers. However, it should be noted that the Job Creation Law itself was issued to increase protection for workers.

Indah Anggoro Putri as the Director General of PHI & Social Security at the Ministry of Manpower said that the Job Creation Law was issued to increase protection for workers or the workforce as a whole.

         For those who are not yet working, the Job Creation Law regulates several matters related to ease of doing business and healthy investment so that it is hoped that this will be able to expand employment opportunities. Certain time).

         Meanwhile, for workers who have been laid off, the Job Creation Law has regulations that guarantee job loss. Where those who have been laid off can get benefits such as cash, then training benefits (reskilling) to get a new profession and benefits to be able to access the job market or job vacancies.

         Indah said that in a comprehensive manner the Job Creation Law actually provides protection to workers who have not worked, are currently working or have been laid off.

         Responding to the demonstrations against the Job Creation Law which had previously been carried out by the trade unions, Indah said that this was indeed a consequence of every issuance of regulation which could cause action and reactions from the community.

         Indah said that this action would actually become input for the Ministry of Manpower to socialize the Job Creation Law more thoroughly.

         Meanwhile, regarding the opinion of some parties that the Job Creation Law is considered to have a negative effect on the protection of Indonesian Migrant Workers, Head of the Indonesian Migrant Worker Protection Agency (BP2MI) Benny Rhamdani stated that this was not true or a hoax. Precisely the spirit to open jobs from the government must get joint support.

         Benny said that the Job Creation Law did not reduce the protection of PMI in the slightest. PMI protection remains a concern and is clear. Moreover, the law has also included PMI protection in the labor chapter in the law. The Job Creation Law also mandates licensing for PMI placement companies to comply with provisions regarding business licensing.

         Meanwhile, the Secretary of the Directorate General of Development of Industrial Relations and Social Security (Ditjen PHI and Social Security) of the Ministry of Manpower, Surya Lukita, said that there had been changes compared to the 2020 Job Creation Law.

         One of them is related to employment where there are changes in regulations related to labor regulations, especially related to labor protection. Surya explained, firstly the government wants to protect workers who are already working and also those who are not yet working, considering that currently unemployment is still high, especially in 2020 when the Covid-19 pandemic caused the unemployment rate to rise from 4 percent to 7 percent.

         The 7% figure may seem small, but if you look at the number of unemployed people, it turns out that there are 9.7 million people who have lost their jobs. This is  the government’s concern  regarding how the unemployed in Indonesia can quickly get a job, and is one of the goals of the Job Creation Law, namely how regulations create jobs for those who are unemployed, one of the ways is by facilitating investment licensing. 

         Investment itself is believed to be a way out to reduce unemployment, both investment from within the country and from abroad or foreigners.

         Then, for workers who are already working, protection will be improved in the Job Creation Law, one example is the protection of contract workers or outsourced workers whose protection will be increased both in terms of working time and rest so that it is better in line with wages.

         The Ministry of Manpower has also stated that the Job Creation Law is not only to create job opportunities, but also to accommodate continuity of work, increase protection and welfare of workers/laborers, as well as sustainable business continuity.

         Ida Fauziah as the minister of manpower (Menaker) said, VUU Job Creation also aims to solve employment challenges such as the demographic bonus, where most of the population is of productive or working age.

         Ida also hopes that the Job Creation Law will be able to improve the employment climate which can support increased national productivity. On the other hand, the Job Creation Law also aims to simplify, synchronize and cut down regulations that impede job creation, as well as an instrument for simplifying and increasing the effectiveness of the bureaucracy.

         Of course it would be very unfortunate if the Job Creation Law was rejected by groups who did not fully understand the Job Creation Law.

         It is hoped that the issuance of the Job Creation Law will be able to provide comprehensive protection for workers or workers, both those who have not worked and those affected by layoffs, so that the Law does not only protect but also provide solutions to the problems faced by workers.

)* The author is a contributor to the Indomedia Gala Institute

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