The Job Creation Law is Government’s Commitment to Provide Worker Adaptive Protection
The issuance of the Job Creation Perppu which has been passed into the Job Creation Law is a strong commitment and real work from the Government of Indonesia to continue to provide adaptive protection for workers or laborers to face the many challenges of employment that continue to be dynamic.
The Government of the Republic of Indonesia (RI) has indeed made swift and precise moves, namely by issuing Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation (Ciptaker) to be an anticipatory step in facing all the uncertainties of the global economy in 2023, including to guarantee the creation of legal certainty.
Regarding this matter, Deputy Minister of Finance (Wamenkeu), Suahasil Nazara revealed that in fact there is a Job Creation Perppu which can be used as the basis for statutory product regulations which become the rationale for the Ciptaker Law.
It is undeniable that Indonesia, entering 2023, will face a lot of economic uncertainty and will also have to face the threat of a global recession. In fact, according to the Deputy Minister of Finance, there are already one third of countries in the world that are threatened with a recession, this is as a result of tightening monetary policy which is the impact of increasing inflation conditions throughout the world. Of course, with increasing inflation conditions, price stability is disrupted.
Furthermore, the Deputy Minister of Finance explained that 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.
Therefore, according to him, one of the things that is very important for Indonesia is that there must be business certainty. So that is where the role of the Ciptaker Law , which was recently passed by the DPR . With the success in creating business certainty, Indonesia will also be able to face a world recession.
Meanwhile, the Minister of Manpower (Menaker), Ida Fauziyah said, from the context of employment, the Government Regulation in lieu of the Job Creation Law ( Perppu Cipta Kerja) is proof of the government’s commitment to providing labor protection and business continuity to answer the challenges of developing labor dynamics. The Menaker emphasized that the substance of employment as regulated in the Job Creation Perpu Number 2 of 2022 is basically an improvement from the previous regulation, namely Law No.11 of 2020 concerning Job Creation.
Emphatically, he stated that the refinement of several substances regarding employment that had been contained in Perppu Number 2 of 2022 was indeed an effort by the Government of the Republic of Indonesia in providing adaptive protection for workers or those in need in facing the many challenges of employment which are increasingly becoming increasingly dynamic.
Then, related to the existence of employment substance that has been perfected in the Job Creation Perppu, among others, the first is regarding outsourcing provisions. In the previous Ciptaker Law there were absolutely no restrictions regarding the types of work that could be outsourced, but in the Job Creation Perppu, the types of outsourced work were limited.
The Minister of Manpower then stated that with the regulation of outsourcing restrictions, automatically not all types of work could be simply handed over to outsourcing companies .
Second, improvements and adjustments to the calculation of the minimum wage. The minimum wage is calculated by considering economic growth, inflation and certain indexes. The formula for calculating the minimum wage, including certain indexes, will be regulated in a government regulation.
In the Job Creation Perppu it is written that the governor is obliged to set the Provincial Minimum Wage (UMP). The Governor can also determine the Regency/City Minimum Wage (UMK) if the result of the calculation of the UMK is higher than the UMP.
The third advantage is the confirmation of the obligation to implement the structure and scale of wages by employers for workers or laborers who have worked for 1 (one) year or more. Then the fourth is related to the use of disability terminology which has been adapted to Law no. 8 of 2016 concerning Persons with Disabilities.
Fifth, improvement of references in the article governing the use of the right to rest for which wages are still paid in full, as well as related to the benefits of the Job Loss Guarantee program (JKP).
The Menaker said, the changes related to the substance of the workforce refer to the results of absorbing the aspirations of the Job Creation Law carried out by the government in several regions, including Manado, Medan, Batam, Makassar, Yogyakarta, Semarang, Balikpapan and Jakarta. At the same time, studies have been carried out by various independent institutions.
The existence of adaptive protection for all workers or laborers in Indonesia is very important to be guaranteed, this is because the challenges continue to change dynamically. So that the existence of the Job Creation Law is a concrete effort from the Indonesian Government to provide this protection.
)* The author is a contributor to Nusantara Reading Room