By : Anindira Putri Maheswani )*
The development of the dynamics of the global economy today feels very fast. This should be immediately anticipated due to its impact on the national economy which also influences job creation in Indonesia. To answer this, the government passed the Regulation in lieu of the Job Creation Law to become an Act (UU) in March 2023.
In fact, the Job Creation Law is intended for all parties and stakeholders in Indonesia. The main goal is of course for the benefit of economic growth and equity. Therefore, the government can establish anticipatory policies to strengthen domestic economic fundamentals through structural reforms.
The passage of the Job Creation Law (Perppu) into an Act is able to provide legal certainty as well as various other benefits that can be felt by the community. However, it turns out that there are still various reactions of rejection from the public who misunderstood the intent and purpose of the Job Creation Law.
Since the Job Creation Bill was launched, it has indeed received rejection from various groups, especially from workers or workers. Demonstrations were also busy because they were worried that the Job Creation Law would harm workers’ rights and only benefit entrepreneurs.
Even though the Job Creation Law is a breakthrough from the government to simplify regulations in the context of accelerating investment. The existence of this regulation does not only have a positive impact on employers, but also on workers. Workers or laborers will be greatly assisted because of the Job Creation Law. One of them is related to bonus rules and overtime hours.
The Job Creation Law also states that the government will assist employees affected by Termination of Employment (PHK), such as by providing various job training. If you still can’t get a job, the government will also provide assistance in the form of cash which will be paid for six months by BPJS Employment.
There is also an opinion that the Job Creation Law means that workers will get wages calculated per hour. In fact, when referring to Article 88B Chapter IV concerning employment, it is stated that labor wages are determined based on units of time, and/or units of output. Further provisions will be stipulated in the PP with the unit of time, which means there is no rule stating that wages are calculated on an hourly basis.
So, the existence of the Job Creation Law has clearly provided benefits from various sides, both for employers and workers.
For example, in Law Number 13 of 2003 concerning Manpower, article 42 paragraph 4 states that foreign workers can work in Indonesia only in an employment relationship with certain positions within a certain period of time. However, in the Job Creation Law, foreign workers are regulated to be able to work in Indonesia only in a work relationship for certain positions within a certain time and have competence according to the position occupied.
Of course, this shows that the Job Creation Law has regulated that foreign workers cannot just enter and work in Indonesia. So it is not true that some people think that the Job Creation Law makes it easier for foreign workers to take jobs that should be the right of the Indonesian people.
In addition, the Job Creation Law also regulates Micro, Small and Medium Enterprises (MSMEs). There are MSME clusters and ease of doing business clusters that will make it easier for businesses on a small and medium scale. These business actors must be assisted because 90% of business actors in Indonesia are MSMEs, so they also help the country’s economy.
The performance of MSMEs will also be facilitated by the Job Creation Law. The Ministry of Trade cooperates with the private sector to accelerate MSMEs. So, MSMEs can learn how to do business online by taking advantage of the progress of the digital era. Therefore, the community needs to fully support the ratification of the Job Creation Perppu into law. Because the Indonesian economy will improve because MSMEs will benefit.
The ratification of the Job Creation Perppu into law is already a constitutional action that provides legal certainty for the economic sector including workers. Implementing regulations for the Job Creation Law also provide better protection of rights for workers.
It should be understood that the Job Creation Law aims to align policies at the center with the regions. It is important to overcome overlap by trimming articles that are considered ineffective in order to have an impact on better economic development.
The passage of the Job Creation Law was also able to encourage investment with a simple licensing system. Licensing process changed from permit-based to risk-based. A risk-based licensing system can be obtained online through the Online Single Submission Risk Based Approach (OSS-RBA).
Simplified licensing arrangements certainly improve the investment climate in Indonesia and at the same time attract local and foreign investors to invest in Indonesia. The increase in the investment value of course also has an impact on the opening of jobs in various sectors so that the number of unemployed can be reduced.
Thus, the public needs to understand that the Job Creation Law is a more perfect policy. The existence of the Job Creation Law is the right regulation to foster investment and create jobs in the country. The opening of employment opportunities absorbs a lot of productive workers so that welfare can increase.
)* The author is a contributor to Persada Institute
