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Perppu on Job Creation is a Strategic Step to Face the Dynamics of the Global Economy


The global economic situation is sometimes uncertain, this of course has an impact on the economy of all countries, including Indonesia. So that the government needs to carry out mitigation in order to anticipate the dynamics of the global economy that is currently happening. One form of mitigation is the issuance of Perppu Number 2 of 2022 concerning Job Creation.

The Job Creation Perppu is a strategic step from the government to anticipate the dynamics of the global economy that is currently happening. Especially with the prediction that in 2023 almost a third of the world’s countries will be threatened with entering into a recession.

​Arif Budimanta as Secretary of the Task Force (Satgas) to accelerate socialization of the Job Creation Law, said that it is hoped that the Job Creation Perppu will continue to navigate the dynamics that are currently happening. Thus, the government’s efforts to increase employment and social welfare and provide convenience in doing business can be continued.

Arif said that the parties that felt the most impact from the presence of this regulation were actually micro, small and medium enterprises (MSMEs) and low-risk businesses. They are given convenience in obtaining permits through the Online Single Submission system.

​On a different occasion, Dimas Oky Nugroho as Chair of the Job Creation Law Task Force Socialization Strategy Group said that the establishment of the Job Creation Perppu was a strategic move by the government in anticipating global economic uncertainty.

This is done through creating and increasing employment opportunities, ensuring that every citizen gets a job, empowering cooperatives and MSMEs, as well as adjusting various regulatory aspects related to ease of doing business.

In collaboration with Dimas, Tina Talisa, Chair of the Synergy Working Group on Substance Socialization of the Job Creation Law Task Force, said that the sector that has most benefited from the convenience of doing business from the presence of the Job Creation Law is actually MSMEs. Thus, the notion that the Job Creation Law only gives a red carpet to big investors is of course not true. In fact, the Job Creation Law is very pro-MSMEs.

The assumptions and views which state that the Job Creation Law is very pro-foreign investors also need to be straightened out. Tina stressed, what investors mean is not only investment from abroad or foreign investment (PMA), but also domestic investment (PMDN).

On a different occasion, Associate Expert at the Office of the President’s Staff, Prita Laura. It is hoped that each ministry/institution can conduct outreach regarding the Job Creation Perppu to the public. Thus, the public mindset can better understand the existence of these regulations.

He also emphasized the need for a common understanding from all ministry/agency public relations personnel regarding the issuance of the Job Creation Perppu. This is because it will make it easier for the apparatus to socialize these regulations to the public.

The Job Creation Perppu Especially now that many countries are experiencing economic crises and energy crises which are the impact of global dynamics. The Job Creation Perppu may be a preventive step in overcoming various risks that Indonesia has the potential to experience.

​Meanwhile , Airlangga Hartarto as the Coordinating Minister for the Economy stressed the importance of the existence of the Job Creation Perppu. Airlangga said that the decision of the Constitutional Court regarding the Job Creation Law influenced behavior in the business sector both at home and abroad. Meanwhile, next year the government has targeted a higher investment value than 2022.

Previously , employers also welcomed the issuance of Perppu Ciptaker Number 2 of 2022 as a substitute for the Job Creation Law. This is because these rules determine the activities of the business and investment world.

​Kadin Chairman

​Arsjad said, in the midst of global economic conditions, recession, rising inflation, the issuance of this Perppu is urgently needed.

He said the current global economic situation was uncertain. Therefore, the government needs to issue regulations that can support investment inflows, create jobs and maintain economic growth on target.

Moreover , Indonesia urgently needs incoming capital to absorb labor, reduce the number of poor people and encourage economic growth. Therefore, he called on the government to immediately address the legal vacuum that has long been a complaint for investors and business actors.

Arsjad hopes that the issuance of this Perppu can provide legal certainty and confidence for investors to invest in Indonesia and create more jobs.

​Strategic steps need to be taken to prepare Indonesia to face the dynamics of the global economy. The Perppu on Job Creation was issued to fill the regulatory vacuum so that investors and entrepreneurs can still get legal certainty. Moreover, the issuance of the Job Creation Perppu is also classified as urgent, amid the threat of stagflation and recession.

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