By: Shenna Aprilya Zahra )*
Plans for a labor demonstration on August 10 2023 to reject the Job Creation Law (UU) need to be cancelled. This is because the Job Creation Law is considered capable of bringing in investment and reducing the number of unemployed by expanding employment opportunities.
A handful of labor elements attempted to demonstrate against the Job Creation Law on 10 August 2023 in order to demonstrate against the Ciptaker Law at the State Palace. This is a futile action because there are actually several important aspects of the Ciptaker Law.
The three important aspects in drafting the Job Creation Law are protecting the workforce, protecting those who are not yet working and facilitating investment. It is these three aspects that are predicted to be able to save the Indonesian economy from the threat of recession.
The first aspect is protection for contract workers and outsourced workers, such as setting work and rest times, as well as setting wages for them. This aims to improve the welfare of workers and provide certainty for those who work on a contract or outsourced status.
The second aspect is currently also very important to protect people who are not yet working, where the Covid-19 pandemic has had an impact on increasing unemployment in Indonesia. The Job Creation Law has included opening up new jobs and providing training or courses to improve the skills of those who have not worked.
The third aspect is certainly no less important for Indonesia’s economic growth. The Job Creation Law has regulations in which investors will receive incentives and legal protection for those who wish to invest in Indonesia, so that with growing investment, it is hoped that it can open new jobs that can drive Indonesia’s economic growth.
Secretary to the Directorate General for Development of Industrial Relations and Social Security (PHI and Social Security) of the Indonesian Ministry of Manpower, Surya Lukita said, structural reforms to the Job Creation Law are believed to have a positive impact on increasing investment and reducing barriers to trade and investment in Indonesia. In fact, this regulation is considered to be able to reduce trade and investment barriers by up to 10%.
Previously, the DPR had officially approved Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation to become law. Approval was taken at the 2022-2023 Plenary Session at the parliament complex. The regulation was approved less than two months after the President’s letter (Surpres) was sent to the DPR on February 7. A week later, the DPR’s Legislative Body (Baleg) held a marathon meeting to discuss the Perppu.
The Coordinating Minister for the Economy Airlangga Hartarto said that the implementation of the Job Creation Law during the Covid-19 Pandemic had succeeded in encouraging an increase in the flow of foreign direct investment (FDI) into the country. The rate of foreign investment (PMA) in Indonesia increased by an average of 29.4 percent in the 5 quarters after the publication of the Job Creation Law compared to the FDI rate 5 quarters before the issuance of the Job Creation Law.
This increase seems to be in line with the World Bank report in December 2022 which stated that Indonesia was the second largest country receiving FDI in Southeast Asia, after the issuance of the Job Creation Law. This is a sign that investors are responding positively to the presence of the Job Creation Law.
Various derivative regulations of the Job Creation Law as the basis for running programs and policies have also accelerated the recovery of the Indonesian economy from the impact of the co-19 pandemic. Moreover, the current licensing process has been integrated through Online Single Submission (OSS) where the system is useful for unraveling the bureaucratic process in licensing which was previously complicated and full of uncertainty.
Chairman of KADIN Andik Dwi Putranto said that the Omnibus Law can give hope to entrepreneurs who experience difficulties in obtaining investment permits. It is hoped that the passage of the Job Creation Law will encourage national economic recovery and lead Indonesia to a just, prosperous and prosperous country. The Job Creation Law is also considered to be able to help Indonesia escape from the brink of an economic recession. This is because the Job Creation Law will attract a lot of investment into the country.
The Ciptaker Law is believed to be able to answer various fundamental economic problems, especially after the Covid-19 pandemic. With collaboration between the government, the business world and trade or labor unions, it is hoped that the problem of lack of employment opportunities can be resolved in stages. Through the Ciptaker Law, issues related to employment are no longer a polemic, a quality workforce certainly has qualified welfare standards.
Previously, Sari Pramono as Chair of the Labor, Vocational and Health Division of the Central Governing Body (BPP) of the Indonesian Young Entrepreneurs Association (HIPMI), said the Job Creation Law would create more jobs. Indonesia’s workforce will also have a decent income.
As an entrepreneur, he hopes that the Job Creation Law can always encourage the economy and investment through creating and expanding employment opportunities. The dynamics of global economic changes require a fast and appropriate response. Without structural reforms, economic growth will continue to slow down.
Of course, the plan for a labor demonstration on August 10 2023 needs to be canceled because it will only hamper investment and disrupt public order. Workers are also encouraged to be able to channel their aspirations regarding the Ciptaker Law through existing legal channels and maintain a safe situation in society so that economic rotation can continue to grow and be maintained.
)* The author is a contributor to Nusantara Reading Room
