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Perppu Cipta Kerja Efforts to Mitigate the Impact of the Global Recession

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Jakarta – Government Regulation in Lieu of Law (Perppu) on Job Creation will be an effort to mitigate the impact of the global recession. This Perppu opens space for business and investment, so that Indonesia is safe from the threat of recession. The country’s economy remains stable because it has a lot of foreign exchange, which is obtained from foreign investors.

The Job Creation Perppu is a bastion of the national economy because it creates an investment climate in Indonesia. Where the economy will be safe because of the large amount of foreign exchange coming in, thanks to the services of foreign investors. Indonesia will survive recession in 2023.

One of the impacts of the recession is the lack of jobs. When factories go bankrupt and their employees lose their jobs, they are confused about where to make a living. The government saves them with the pre-employment card program, which adds skills so they are truly ready for work. In addition, the Job Creation Perppu will also help because it will improve the investment and business climate, so that it can absorb manpower.

Labor expert from the National Research and Innovation Agency (BRIN) Triyono, assesses that the pre-employment card program with the Job Creation Perppu has a big slice in providing manpower and creating jobs. Ecosystem-based Perppu Job Creation for investment. In fact, the need for investment is close to employment, an educated workforce.

Triyono added, if a lot of investment comes in, then the industry moves and requires a lot of manpower. Participants who have attended the pre-employment card training are expected to be competent to compete in the world of work. The international world has many predictions that it will experience a slowdown. Precisely with the presence of pre-employment cards coupled with the Job Creation Perppu can strengthen each other

This means that the pre-employment card and the Job Creation Perppu support each other because this card provides skills and knowledge, so that people are ready to work. Meanwhile, the Job Creation Perppu will attract investors so that many factories and companies will be built by them. Workers who already have skills after passing pre-employment training will be ready to fill positions as employees in the company.

In this way, the risk of recession will be reduced, because people have good jobs with a minimum wage of UMR. They can buy their daily needs without worrying about the price (although there is a bit of inflation). The public’s financial condition remains stable and is not too affected by the impact of the global recession.

Meanwhile, Deputy Minister of Finance (Wamenkeu) Suahasil Nazara stated that Indonesia is entering 2023 with high economic uncertainty due to the threat of a global recession. One third of the world’s countries are threatened with a recession, the impact of tightening monetary policy which is the impact of rising inflation conditions throughout the world. Rising inflation conditions disrupted price stability.

Furthermore, the Deputy Minister of Finance explained, when one third of the world is experiencing a recession, two thirds of countries will definitely be affected. Indonesia is not one of the countries that will be hit by a recession, but must anticipate the threat of a recession by exercising business certainty.

One of the things that is important in Indonesia is business certainty. This is where the Job Creation Law, which has been issued by Perpunya, comes in. Creating certainty so that Indonesia can face a world recession which is predicted to come in 2023.

The Job Creation Perppu saved Indonesia from the threat of recession because there was business certainty, both for local and foreign entrepreneurs. Local businesses can develop because there is a MSME cluster in this Perppu. Where entrepreneurs at the small and medium level make it easier to do business, because there is free processing of business license numbers (NIB) and also MUI halal status.

With NIB, local entrepreneurs can develop their business because it is considered valid by the state and trusted by banks or finance companies.  He can get a business capital loan and enlarge his business, so that it can grow and get satisfactory results. Entrepreneurs will be free from the threat of recession because their sales will remain good as if there were no pandemics and recessions.

In addition, with the enactment of the Job Creation Perppu, it will be easier for local businesses to obtain halal status by self-declaring. The process is easy, fast, and free of charge by the government. With halal status, it will convince prospective buyers and selling goods are selling well. They are no longer afraid of a recession because their turnover continues to rise.

The Job Creation Perppu is a form of improvement to the Job Creation Law through a public participation mechanism. The aim is to create jobs by increasing the ease and certainty of doing business, investment growth, as well as protection and empowerment for MSMEs amid global economic uncertainty. Recessions and pandemics have caused world economic shocks and must be countered by the Job Creation Perppu.

With the issuance of this Perppu, we can improve state laws and regulations so that the Indonesian economy can deal with conditions that are not ideal in this world, improve the investment climate, strengthen investment in Indonesia, and create jobs, and people can better deal with world uncertainties. . The Job Creation Perppu is an effort to mitigate the impact of the global recession. Indonesia’s economy will be safe because this Perppu invites many foreign investors, who deposit foreign exchange and improve state finances. Apart from that, the Job Creation Perppu also stabilizes the world of business and investment and adds a lot of job vacancies, because many investors are starting businesses in Indonesia.

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