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Job Creation Perppu is Needed to Open Jobs


Jakarta – The issuance of Perppu Cipta Kerja carried out by the Government is really needed to be able to open up the widest possible job opportunities for improving people’s welfare in the country. Moreover, as an effort to anticipate the turmoil of global economic uncertainty.

The President of the Republic of Indonesia (RI), Joko Widodo (Jokowi) has officially issued Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation which was signed on December 30, 2022. The decision taken by the President was indeed an anticipatory step for this nation in facing all the global uncertainties that are happening in 2023.

In this regard, the Economist of the Center of Reform on Economics (Core) Indonesia, Yusuf Rendy stated that in fact the vision contained in the Job Creation Law (UU) itself was intended to further encourage more investment in Indonesia. , both from investors who come from within the country itself or those who come from abroad.

So of course, with the hope that more and more investors will come to Indonesia to invest their capital and carry out investment activities, it will automatically be able to open up opportunities for job creation and absorption of the current workforce.

Even though in fact the previous existence of the Job Creation Law was very good, there was a Constitutional Court (MK) Decision which considered that there were still a number of things that really needed to be corrected and immediately corrected by the government from the existence of the Job Creation Law so that the MK declared the Law conditional unconstitutional status.

Of course, with the instructions given through the Constitutional Court Decision, the Government of the Republic of Indonesia immediately tried to quickly and responsively make improvements to the previous Ciptaker Law. However, if repairs are carried out through normal mechanisms, then of course it will be very long and never finished.

Whereas, on the other hand, global conditions are still full of uncertainties with various kinds of potential threats ranging from an economic recession, rising inflation rates, to the threat of stagflation. Moreover, due to the prolonged geopolitical conflict between Russia and Ukraine, which still has not found a bright spot, it has caused some of the world’s energy and food supplies to be severely disrupted and prices have increased greatly.

By looking at how many potential threats are also possible that will also affect Indonesia, the Government of Indonesia is trying to improve the Job Creation Law as soon as possible by issuing Perppu Number 2 of 2022 concerning Job Creation which is able to fill the void and guarantee legal certainty left by The previous Ciptaker Law.

Furthermore, Yusuf Rendy alluded to how the government’s efforts to improve the welfare of workers and labourers. According to him, in simple terms, the workers actually want the adequacy of their basic material needs and also their welfare to increase gradually.

However, in order to reach that point, the Core Indonesia Economist added that it is indeed very important to have a meeting point between workers and labourers, with business actors, including also with the regulators or the government that designs policies. Therefore, the policy design contained in the Job Creation Perppu is considered capable of increasing the welfare of workers in the long term.

It cannot be denied that according to him the existence of Perppu Number 2 of 2022 concerning Job Creation is able to influence how investors decide to then carry out their investment activities in Indonesia because they feel that there is clear legal certainty from the Indonesian Government.

He himself reflected on how the formation of the previous Ciptaker Law was indeed according to the Economist able to provide a stimulant for investors to invest in the country because the existence of this policy was part of a structural reform process which the government has been continuously promoting in improving the business world.

Meanwhile, the Coordinating Minister (Menko) for the Economy, Airlangga Hartarto explained that the existence of the Job Creation Perppu which the government has also consulted with the People’s Representative Council (DPR RI) will indeed be able to create a conducive investment climate, as well as having an effect on encouraging additional jobs. It is necessary to create a lot of job opportunities for Indonesia, which has an abundant population and people of productive age. It is also able to continue to improve the welfare of the community itself. Therefore, in an effort to anticipate all the uncertainties in global conditions in 2023, the government immediately issued a Job Creation Perppu.

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