Job Creation Law as a Shield for Future Global Economic Challenges
In the midst of the global and national economic recovery trend after the Covid-19 pandemic, the Indonesian economy in 2024 is allegedly facing a number of uncertainties. This is partly influenced by external factors, such as the Israel-Palestine and Russia-Ukraine wars, as well as the threat of climate change which could disrupt the food supply chain.
Apart from that, inflation and rising interest rates, the economic slowdown in China, Europe and America are also suspected to have an impact on global economic growth. Apart from these global conditions, at the domestic level, slowing exports, rising domestic interest rates, weakening of the rupiah exchange rate, and elections are also predicted to be macro challenges for the Indonesian economy in 2024.
Assistant Deputy for Monetary and External Sectors, Deputy for Macroeconomic and Financial Coordination, Coordinating Ministry for Economic Affairs, Andriansyah, explained the policy strategy of the Coordinating Ministry for the Economy in supporting the strengthening of the national economy. One of them is continuing to encourage ease of doing business and increasing investment through the implementation of the Job Creation Law and reform of risk-based business licensing (OSS).
The next strategy, said Andriansyah, is strengthening people’s purchasing power and controlling inflation through stabilizing food prices and providing social assistance. Apart from that, strengthening the competitiveness and added value of industry will also continue to be carried out through revitalizing the manufacturing sector “Making Indonesia 4.0”, downstreaming natural resource commodities, and structuring the National Logistics Ecosystem (NLE).
The party wants to encourage exports and maintain the resilience of the external sector through diversification of export markets, strengthening the competitiveness of export commodities, Local Currency Transactions (LCT), and implementation of Government Regulation Number 36 of 2023 concerning Foreign Exchange Proceeds from Exports from Business, Management and/or Processing Activities. Natural Power.
Apart from that, continued Andriansyah, efforts to empower MSMEs will also continue to be carried out by providing easy licensing, access to financing through KUR, UMi, Mekaar, and LPDB, as well as digitalizing MSMEs. Including increasing human resource productivity which is emphasized through the Pre-Employment Card Program, vocational education and training programs, and accelerating digital literacy.
In line with this, one of the lecturers from the university also stated that the current global economic situation continues to be hit by challenges that could trigger a recession and could have an impact on the national economy.
Abdul Karimuddin SH, MH, Lecturer in Law (Civil) at Tadulako University, said that to anticipate a recession due to the global crisis, appropriate policies are needed, one of which is the issuance of the Job Creation Law by the government.
Through the Job Creation Law, the government is trying to overcome economic problems in order to stimulate national economic growth, such as expanding employment opportunities and optimizing resources for the welfare of all Indonesian people.
According to him, apart from that, the Job Creation Law can also create legal certainty, encourage investment, mobilize the community MSME sector, facilitate business licensing, protection for workers and many other benefits that will be obtained in society.
For this reason, the government continues to strive to provide education by conducting outreach to the entire community about the benefits of the Job Creation Law to stimulate the national economy.
According to him, the government cannot work alone, there needs to be synergy from all parties to be able to convey how important the benefits of the Job Creation Law are in encouraging national economic growth. Let us together support the Job Creation Law as a stimulus to support national economic growth to improve community welfare.
In this way, the regional government has also started planning after the ratification of the Job Creation Law, such as the synergy carried out by the regional governments of Central Java and East Java.
Bapemperda DPRD East Java visited DPRD DIY to discuss strategies for empowering cooperatives and MSMEs after the enactment of the Job Creation Law. At this visiting meeting, parties from the DIY DPRD and the DIY Industry and Trade Service (Disperindag) presented draft regional regulations related to cooperatives and MSMEs to be studied and implemented by the East Java Regional Regulation.
Head of the Legal Product Formation and Assessment section, Rio Kamal Syiefa, S.H., M.AP., M.Sc. said that currently the DIY DPRD is drafting two regional regulations which emerged on our own initiative. The first is regarding DIY’s anniversary, because it seems that other provinces already have an anniversary while DIY doesn’t yet. Then, the second is to discuss the draft regional regulation on the promotion of development and empowerment of sub-district and sub-district communities.
Getting to the heart of the discussion, Bapemperda DPRD East Java, H. M. Hasan Irsyad, S.H., M.Si responded that East Java is also currently carrying out regional regulation drafting activities. Not only that, the focus of the discussion on this visit was related to the Draft Regional Regulation which regulates MSMEs and Cooperatives. This is important because the East Java DPRD wants to see and examine the form and implementation of the DIY Raperda which regulates the MSME and Cooperative sector. This study aims to be applied to the province of East Java.
Law Number 11 of 2020 concerning Job Creation is an omnibus law which amends various provisions in sectoral laws, including employment laws. The Job Creation Law aims to increase investment, expand employment opportunities and accelerate economic development in Indonesia.