The Job Creation Law (UU Job Creation) has provided significant benefits and positive impacts on improving the national economy. The Job Creation Law is also an important step in avoiding the middle income trap which can hamper the development of developing countries. So the implementation of the Job Creation Law is very important because it has an impact on improving the economy and encouraging investment in Indonesia.
Apart from that, there are many other benefits that the Job Creation Law can provide. Not only for business actors, workers will also get better benefits and increased protection compared to the Employment Law. The Job Creation Law provides a guarantee of certainty in providing severance pay and protection to workers by implementing the Job Loss Guarantee Program (JKP).
Then the Job Creation Law was designed with the aim of increasing Indonesia’s economic competitiveness and encouraging sustainable economic growth. By simplifying regulations and licensing processes, the Job Creation Law can increase its attractiveness for investors, both domestic and foreign. This simplification can help reduce bureaucracy and administrative barriers, thereby encouraging more investment into various economic sectors.
The Job Creation Law also provides more flexibility for business actors in managing their workforce and operations. It is hoped that the Job Creation Law can increase business efficiency and productivity, which in turn will support overall economic growth. Apart from that, the Job Creation Law also focuses on accelerating infrastructure development by simplifying the licensing and approval process. Better infrastructure will open access to remote areas, improve connectivity, and reduce logistics costs, all of which will support regional and national economic growth.
Secretary of the Job Creation Law Task Force, Arif Budimanta, said there were three main points in establishing the Job Creation Law, namely to provide convenience, protection and empowerment for micro, small and medium enterprises (MSMEs). The Job Creation Law also aims to open up opportunities for entrepreneurs so that the need for employment can be absorbed from the workforce which continues to increase all the time.
Apart from that, Arif also said that the Job Creation Law helps channelize the demographic bonus with job creation. The Job Creation Law makes it easier for everyone to carry out business activities for anyone, not only large businesses but also small ones, both in terms of ease of business licensing, access to capital and employment aspects, so that the need for employment can be absorbed.
Furthermore, the Job Creation Law has a positive impact on the investment climate which will ultimately support the creation of job opportunities. This can improve the community and national economy. The Job Creation Law also emphasizes the role and function of regional governments as part of the government system, where existing authorities are still implemented by regional governments, in accordance with the Norms, Standards, Procedures and Criteria (NSPK) set by the Central Government, so that it will creating a good standard of service for all regions.
Meanwhile, Economic Observer, Dendi Ramdani, said that one of the implementations of the Job Creation Law aims to increase competitiveness and national economic growth. This regulation is also to push Indonesia towards becoming a high income country . Apart from that, the structural transformation carried out through the Job Creation Law is a strategic step, considering that many countries fail or are late in carrying out structural transformation and end up being trapped in the middle income trap .
Experience from several countries around the world shows that if a country fails to implement structural transformation well, it will not achieve high-income status. On the other hand, the country will fall into the middle income trap , productivity will decline, and per capita income will decline. Several countries, such as Brazil and South Africa, are examples of countries that failed to carry out structural transformation and experienced a decline in per capita income after reaching a certain peak.
Then the Job Creation Law will be a Big Game Changer to encourage economic transformation, through regulatory reform and encouraging ease of doing business. The timing of the current Job Creation Law is very appropriate, because it creates jobs, which will help reduce the negative impact on those who have been laid off or laid off. And through the Job Creation Law, the government encourages job creation and also encourages people to become entrepreneurs.
The Job Creation Law is a form of win-win solution presented by the government for various problems that have occurred in the business sector and employment management. All parties will benefit, for example business actors can develop businesses without complicated and profitable regulations. Apart from that, workers’ rights can be better appreciated, and investors can gain certainty and ease in investing.
Legislative products should indeed be an important part of establishing equal justice for all parties. Therefore, the existence of the Job Creation Law can be the right solution in creating an expansion of employment opportunities and optimizing resources for the welfare of all Indonesian people.
