The Job Creation Perppu brought positive results in Indonesia, because it increased the workforce, thanks to the influx of foreign investment. In addition, simplifying the bureaucracy makes it easier for entrepreneurs to take care of licensing. So that the business can grow rapidly and add employees, and reduce unemployment.
The impact of the corona storm has caused many people to lose their jobs, because many companies have lost money. Mass layoffs make people anxious, because they have to lead a difficult life. Even though the prices of groceries and other goods continued to rise, their severance pay was dwindling.
The government is trying hard to get people back to living in peace and getting a livelihood by inaugurating the Job Creation Perppu. After the Perppu is made into law and enforced in the field, new jobs will be opened. Unemployed people will work again.
Professor of Business Law at Gadjah Mada University, Nindyo Pramono stated that Law Number 11 of 2020 concerning Job Creation before being declared Conditionally Unconstitutional by the Constitutional Court (MK) had produced several achievements. One of them was successful in increasing investment and expanding employment, especially during the Covid-19 pandemic.
Data shows that investors, both foreign and domestic, have responded positively to structural reform efforts through the Job Creation Law. The World Bank’s analysis report on the publication of Indonesia Economic Prospects December 2022, the Job Creation Law has had a positive impact on increasing FDI (Foreign Investment) in Indonesia. Total realized FDI increased by an average of 29.4 percent in the five quarters after the issuance of the Job Creation Law.
Nindyo continued, structural reforms through the Job Creation Law were also able to reduce barriers to trade and investment in Indonesia. This law also succeeded in reducing trade and investment barriers by almost 10 percent in 2021.
In a sense, the Job Creation Perppu must be passed into law as soon as possible, because this Perppu is a refinement of the Job Creation Law. It must be admitted that the Job Creation Law has brought many positive things to the world of work and reduced the number of unemployed in Indonesia.
During the Covid-19 pandemic, many people lost their jobs due to the company’s declining financial condition. To overcome the large number of new unemployed, the government issued a Job Creation Perppu which regulates the employment climate so that it is better and at the same time opens opportunities for those who need new jobs.
Deputy Chairperson of KADIN Shinta W Komdani stated that with the Job Creation Perppu the government could prepare regulations when there would be an investment boom later. Because when the pandemic is over, there will be a lot of demand for work and finally preparations are made to create jobs. The government wants to eradicate unemployment so that people will be more prosperous.
The Job Creation Perppu facilitates investment licensing in Indonesia, so the rules are simpler. The waiting period for an exit permit is also short, not for years like before. This rule change encourages foreign investors to invest in Indonesia. Automatically the country will get additional foreign exchange and improve its financial condition.
In addition, projects made from the results of investments certainly need a lot of employees, from unskilled laborers to administrative workers. This is very good because it can open up many job vacancies. Unemployed people who were sluggish due to being laid off due to the effects of the Covid-19 pandemic can be enthusiastic about applying for jobs and getting their income back.
Article 4 of Perppu Cipta Kerja states that job creation is carried out through arrangements related to improving the investment ecosystem. There is also a guarantee of workers’ welfare and protection through the minimum wage. So workers applying for foreign investment projects need not be afraid because they are guaranteed to get a very decent salary.
Now accusations are rife as to why there are foreign investors but foreign workers are also employed? Article 42 paragraph 4 of the Job Creation Perppu states that foreign workers are not allowed to work in Indonesia indiscriminately. They can only occupy certain positions according to the competition. For example special staff or experts who do not exist in Indonesia.
Applicants will not be discouraged because they do not compete with foreign workers. In 1 company, the amount is less than 5%. After all, during this pandemic, of course there were no flights from countries providing foreign workers. Even if there is, they must take a rapid test which costs quite a bit. Don’t be afraid of the presence of foreign workers because the government prioritizes vacancies for Indonesian citizens.
The Job Creation Perppu also regulates the ease of licensing for MSME entrepreneurs. They are no longer dizzy because they feel confused by the confusing rules of many offices. When permits are issued easily, MSMEs can develop and automatically need additional employees. This is an opportunity because there will be new job vacancies and reduce unemployment.
So, the Job Creation Perppu does not only benefit entrepreneurs and investors. But also job applicants and employees. The articles are arranged in such a way as not to overlap and reduce the complexity of the bureaucracy in Indonesia. The business climate and employment in Indonesia will be better thanks to the Job Creation Perppu.
The Job Creation Perppu was successful in adding jobs because it facilitated investment in Indonesia. In this Perppu there are many clusters that regulate investment, labor regulations, and so on. This regulation can create a large number of workers and reduce unemployment in Indonesia.
