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Government Fully Supports Improving the Quality of Workforce and MSMEs Through the Job Creation Law

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By:  Ratih Safira Utami )*

The government continues to fully support the realization of quality improvements for workers and also Micro, Small and Medium Enterprises (MSMEs) through the Job Creation Law (UU Ciptaker).

The government’s strong commitment to continuously improve the quality of workers and MSMEs has been realized through the implementation of the Job Creation Law, which is also widely known as the Omnibus Law.

Not without reason, because after the ratification of the Law, it is able to create a more conducive business climate. In addition, investment also continues to increase in Indonesia, and can open more jobs for the community.

In this context, the role of the government is very vital to ensure that workers and also Micro, Small and Medium Enterprises can also feel the real benefits of the ratification and implementation of this policy.

The Job Creation Law includes various policies aimed at improving the quality of the Indonesian workforce. One important aspect is improving skills through vocational training and education.

The government, in collaboration with the private sector and educational institutions, continues to promote training programs that are relevant to current industry needs. With the right training, it is hoped that the Indonesian workforce will have better skills and be ready to compete in the global market.

In addition, the Job Creation Law also introduces more flexible policies in terms of employment relationships. For example, regulations regarding Fixed-Term Employment Agreements (PKWT) and casual workers have been adjusted to provide legal certainty for both workers and employers. This is expected to create a fairer and more just work environment, as well as increase workforce productivity.

Director General of Industrial Relations Development and Social Security for Workers at the Ministry of Manpower (Kemnaker), Indah Anggoro Putri, explained that the Job Creation Law is indeed aimed at improving the quality of the workforce in the country.

Not half-heartedly, the government has even made the substance of employment included in the Job Creation Law. Not only quality, but also increased protection for workers, as well as providing expanded job opportunities through investment and ensuring business continuity.

This is because the Omnibus Law policy set also does not degrade the rights of workers at all. Because the collective labor agreement continues to be the highest positive law in the company.

Meanwhile, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the presence of the Job Creation Law is very beneficial, especially in the midst of the current global economic situation which is indeed uncertain.

Various derivatives of the Job Creation Law have become clear programs and policies that are able to further accelerate efforts to restore the economy in Indonesia and bring many major benefits to mitigate the impact of economic dynamics.

If we discuss the role of the Omnibus Law in fully supporting MSMEs, it turns out that it is not impossible for their partnership with large businesses to be realized.

The existence of this partnership is clearly stated in the Job Creation Law to eliminate extreme poverty in Indonesia. The President’s Special Staff (Stafsus) for Economic Affairs, Arif Budimanta explained that President Joko Widodo (Jokowi) has a target of being able to eliminate extreme poverty in the country to zero percent.

This set of policies allows for a very even situation, so that no one is left behind. Therefore, efforts to eradicate extreme poverty are very important, especially in relation to the Sustainable Development Goals (SDGs).

The Head of State really hopes that partnerships can be built more solidly in Indonesia, which also involve large entrepreneurs with Micro, Small and Medium Enterprises.

MSMEs are the backbone of the Indonesian economy, and support for this sector is a priority in the Job Creation Law. The government is implementing various strategic steps to strengthen MSMEs, including ease of business licensing, access to financing, and protection of intellectual property rights.

By simplifying licensing procedures, MSMEs can now easily apply for business permits without having to go through complicated and time-consuming bureaucracy. In addition, with the ease of doing business policy, the government provides tax incentives for MSMEs, so that they can allocate greater resources for business development.

The implementation of the Job Creation Law (Ciptaker Law) is a step forward in the government’s efforts to continue to improve the quality of the workforce and fully support Micro, Small and Medium Enterprises (MSMEs) in Indonesia.

Through various inclusive policies and programs, the government has a very strong commitment to creating a much better business climate, including increasing investment and opening up many more job opportunities.

Thus, it is not impossible that the welfare of workers and MSME actors can continue to increase, which in turn will also be able to encourage the realization of national economic growth.

)* The author is a contributor to Persada Institute

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