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Government Strengthens Business Partnerships to Protect Workers

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By: Aulia Citra )*

The government continues to demonstrate its commitment to building an inclusive and adaptive national employment system, with a primary focus on comprehensive protection for workers. Through a collaborative approach involving the business world, employment policies are directed to become a catalyst for equitable economic growth. This policy focus reflects the government’s serious efforts to create a formal, safe, and highly competitive work environment, while preparing the Indonesian people to welcome the long-term development vision.

Within the framework of the National Long-Term Development Plan (RPJPN) 2025–2045 and the National Medium-Term Development Plan (RPJMN) 2025–2029, the government is targeting the creation of increasingly dominant formal employment opportunities. This is a priority to reduce the number of informal workers who have not had social security protection or legal certainty. The government believes that the creation of formal jobs will increase household economic stability, while strengthening national productive capacity.

Deputy for Community Empowerment, Population, and Manpower of Bappenas, Maliki, said that the government is preparing a revision of the Manpower Law to become a regulation that benefits all parties. This step was taken while upholding the constitution, and ensuring that investment continues to flow without sacrificing workers’ rights. This reform is positioned as a foundation for creating a conducive business climate, an ideal place to invest, and a modern employment protection system.

This paradigm shift not only targets workers who are already in the formal sector, but also provides a way out for those in the informal sector to migrate to safer and more structured jobs. Government programs such as the Pre-Employment Card are aimed at equipping workers with new skills and increasing their competitiveness. This effort is also part of a long-term strategy towards self-sufficiency in strategic sectors such as food, energy, and water.

Furthermore, strengthening labor regulations also includes an evaluation of outsourcing practices. The government is aware that although the outsourcing system is included in the formal employment category, there are still gaps in income protection and job security. Therefore, improving the governance and supervision of this system is a priority to ensure the economic stability of affected workers.

On the other hand, the business world has shown its willingness to be actively involved in this reform process. The Indonesian Chamber of Commerce and Industry (Kadin) views positively the government’s efforts in forming a joint task force to discuss the substance of the new Manpower Law. Kadin understands that the challenges in the process of forming these regulations are not easy, but appreciates the dialogical approach taken by the government. Great hopes are pinned on this partnership to produce policies that are fair and responsive to economic dynamics.

Chairman of the Indonesian Chamber of Commerce and Industry, Anindya Bakrie, assessed that the business world has a moral responsibility to support the creation of worker welfare. He emphasized the importance of ensuring that the industrial climate remains conducive following the adjustment of the Provincial Minimum Wage (UMP). The Chamber of Commerce and Industry also voiced the importance of increasing productivity as a prerequisite for sustainable wage increases. This view shows a shared understanding between the government and business actors about the importance of harmony between economic growth and worker protection.

Kadin also encourages that there be no massive layoffs as a result of policy adjustments. According to this organization, employment stability must be a shared goal. Therefore, all stakeholders are urged to prioritize dialogue and a rational approach in dealing with the transition of employment regulations.

Kadin Deputy Chairperson Shinta Kamdani said that the adjustment to the Constitutional Court’s ruling that separates employment regulations from the Job Creation Law must be carried out with full responsibility. Kadin considers this to be part of the legal process that must be respected. In this context, collaboration between Kadin and the Ministry of Manpower will focus on discussions based on actual data and research, especially from labor-intensive industries that have so far been the largest absorbers of labor.

The government has given a strong signal that the worker protection agenda will not run alone. Partnership with the business world is not only a form of burden sharing, but also a strategic collaboration in shaping the future of national employment. With this approach, Indonesia is expected to be able to create an employment system that is adaptive to global changes, but still based on social justice and legal certainty for all workers.

These steps affirm that worker protection is not a barrier to investment, but rather the foundation for sustainable and inclusive economic development. The government, supported by the business world, is working together to create dignified employment as an important element in achieving the vision of Golden Indonesia 2045.

This step is reinforced by the government’s efforts to encourage the digitalization of the employment ecosystem, including in the online employment reporting and monitoring system. Through digital transformation, the government wants to ensure that workers’ rights can be monitored in real time and accountably, while increasing bureaucratic efficiency in the field.

In addition, the involvement of trade unions and employer associations in the policy formulation process is used as a mechanism to strengthen public legitimacy. This is expected to create a space for constructive dialogue and encourage the birth of more inclusive policies. The synergy between technology, regulation, and stakeholder participation is a key element in creating a healthy and dynamic labor market.

)* The author is a contributor to Pertiwi Institute

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