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Job Creation Law Expands Job Opportunities, Labor Demonstrations Hamper Economic Growth

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The demonstration that will be held on October 2 2023 will actually only hamper economic growth, because the new era Job Creation Law expands job opportunities and provides justice and protection for laborers or workers.

As is known, in accordance with the provisions of Article 185 of the Job Creation Law regarding the establishment of implementing regulations no later than 3 months after the Job Creation Law came into force in November 2020, the Indonesian government has completed 51 implementing regulations for Law Number 11 of 2020 concerning Job Creation.

The Constitutional Court (MK) decision hearing will be held on Monday, October 2 2023 regarding the judicial review of Law (UU) no. 6 of 2023 concerning Job Creation apparently caused the Confederation of Indonesian Trade Unions (KSPI) and the Labor Party to carry out massive mass action.

The action which will take place in front of the Constitutional Court (MK) building, Labor Party President Said Iqbal said that the large-scale action brought masses from various regions starting from Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek). Said Iqbal also claims that those who join will risk the fate of workers in the future.

The Job Creation Omnibus Law, which is claimed to be a common enemy, is actually clear that workers receive the protection and welfare contained in the latest era of the Job Creation Law. So, what is the demonstration for? The things that are required as discussed have actually been answered in the points of the Job Creation Law which show that they are pro-labor.

Some say that the Job Creation Law is not in favor of the community, even though the Job Creation Law can expand job opportunities, so that people who are not yet working can get jobs that suit their abilities.

Coordinating Minister Airlangga Hartarto believes that changes in the licensing process and expansion of business fields for investment will be a game changer in accelerating investment and opening new jobs. So, by implementing the Job Creation Law and its implementing regulations, everything will enter a new era and provide convenience.

Not only that, guarantees for the welfare of workers are also included in the Job Creation Law which regulates the protection and improvement of the welfare of workers or laborers. Based on the Job Creation Law, there are 4 important regulations that need to be known regarding the welfare of workers or laborers, namely, the Job Loss Guarantee Program (JKP), improving working hours, employment relations, termination of employment (PHK) and regarding wages, all of which are pro-labor. or workers.

The demand for a minimum wage was mentioned, in the Job Creation Law it is explained that there is strict action against employers who provide wages below the minimum. This can refer to Article 88E Paragraph (1) of the Job Creation Law which states ‘The minimum wage as referred to in Article 88C paragraph (I) and paragraph (2) applies to Workers/Labourers with less than 1 year of service at the company concerned’. ‘Employers are prohibited from paying wages lower than the minimum wage’.

If an entrepreneur pays wages below the minimum, then according to Article 185 of the Job Creation Law, the entrepreneur will be subject to imprisonment for a minimum of 1 year and a maximum of 4 years or a fine of at least Rp. 100,000,000 and a maximum of Rp. 400,000,000. The calculation of the minimum wage is of course also adjusted to the situation and conditions.

Meanwhile, regarding the provision of minimum wages adjusted to the region which refers to economic and employment conditions. In Article 88C paragraph (1) of the Job Creation Perppu, it is stated that the governor is obliged to determine the provincial minimum wage. Continuing with Article 88C paragraph (4), it is stated that the minimum wage as referred to in the market (1) and (2) is determined based on economic and employment conditions. This does not mean that this is not pro-workers, but with this determination it could be fair for workers and companies.

Having these irrelevant demands will actually threaten their own welfare, even worse, it could hamper Indonesia’s economic growth. How could it not be, even though the Government of the Republic of Indonesia currently needs stability and strengthened economic growth. If the situation and conditions are not supportive, how will stability be maintained properly?

We should be aware and increase our literacy to truly understand the meaning and meaning of the new era Job Creation Law, as a basis for ourselves so that we don’t take part carelessly in carrying out demonstrations that can harm ourselves and expose the community to its negative impacts. . We should sort and select information well, especially to convey aspirations. These aspirations should be conveyed creatively and wisely.

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