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The Job Creation Law was created to provide many benefits for Indonesia


The Job Creation Law (UU) is considered strategic in advancing the Indonesian economy. The legislation in this law contains a number of benefits that can be felt significantly by the community. The existence of this law is also an answer to the challenges of global economic dynamics that are currently occurring and shows that the DPR RI, which represents the aspirations of the community, together with the Government, agrees to the substance of the Job Creation Law.

Many great benefits have been found from the Job Creation Law for the Indonesian economy because there will be regulations that will benefit MSMEs, investors and workers.

In the investment sector, the Job Creation Law makes it very easy for foreign investors to enter and make Indonesia a developed country, because one indicator of a nation’s progress is the large amount of investment in that country.

It is known that currently investors still do not have a clear legal product when they want to invest capital in Indonesia. Therefore, investors really need a legal umbrella through the Job Creation Law. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that with the issuance of the Job Creation Law, Indonesia became the second largest country receiving Foreign Direct Investment (FDI) in Southeast Asia.

This shows that investors responded positively to the presence of the Job Creation Law. Likewise, this law can reduce barriers to investment by more than 1/3 and reduce trade and investment by almost 10 percent in 2021. In this way, the Job Creation Law will be able to stabilize finances in Indonesia.

Meanwhile, in the MSME sector itself, Airlangga Hartarto continued that the Job Creation Law can provide legal certainty in Indonesia, one of which is moving MSMEs which were previously in the information sector into the formal sector.

Airlangga also added that in the Job Creation Law, the Government will make it easier for business actors to obtain halal certification and support in the form of certainty in the licensing process through OSS (Online Single Submission) and by implementing risk-based licensing (risk based approach ) .

Apart from that, various policies related to employment will be made very flexible so that entrepreneurs will find it easy to do business at small and medium levels. Later, MSME players will also be given convenience in registering Intellectual Property Rights (HAKI), establishing an individual Public Company (PT), and other requirements at affordable costs.

The Job Creation Law plays a role in advancing business by taking advantage of the accelerated digitalization of MSMEs or by using digital media networks. This acceleration of digitalization is considered important because digital technology has been used as a promotional medium by business actors.

Meanwhile, Economic Observer at the University of Indonesia (UI), Fithra Faisal, said that the Job Creation Law is a strategic pillar to boost export numbers and increase national economic growth. Then, the law is also considered capable of absorbing the workforce so that it can find solutions to escape the trap of a stagnant economy.

Workers will receive better benefits and increased protection. The Job Creation Law will guarantee the certainty of providing severance pay by implementing the Job Loss Guarantee Program (JKP). This JKP is a form of protection for workers affected by Termination of Employment (PHK) in the form of cash benefits, upskilling and upgrading, as well as access to the labor market.

With this JKP Program, workers affected by layoffs will be protected by the state for a certain period of time to get new jobs, so that people do not need to worry about the Job Creation Law which is not in favor of workers. Apart from that, the Specific Time Work Agreement (PKWT) Worker Program will be opened for all types of work so that work opportunities will be opened more widely.

On the other hand, Deputy III Chief of Presidential Staff at the Presidential Staff Office (KSP), Edy Priyono, said that through the Job Creation Law, the Government will facilitate young people to obtain decent jobs. If there are several young people who are interested in becoming entrepreneurs, the regulations will be made easier through the Job Creation Law.

The conflict over the rejection of the Rempang Eco City project continues to this day. This rejection did not only come from residents of the original Rempang village who were affected by the relocation, but also from fishermen around the small islands in Rempang. This is of course a concern for the Government because it could have an impact on the project development process which has the potential to harm a number of parties, especially investors.

That way, the public does not need to worry about the Job Creation Law because this law is a serious effort by the Government to achieve the target of a Golden Indonesia by 2045. The Job Creation Law also strengthens transformation and regulations to push Indonesia out of a middle income trap into a advanced state.

To achieve this target, Indonesia must realize change and strengthen the national economy through increasing the investment sector with the implementation of the Job Creation Law. In this way, the Job Creation Law will optimize the availability of job opportunities and wider employment in Indonesia.

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