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The Job Creation Law Was Passed for the Welfare of the Indonesian People

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People’s welfare is one of the things that has become the focus of the government after the Covid-19 pandemic hit, so to realize this, regulations or legal products are needed that can support economic activity in Indonesia. Therefore, the government launched the Job Creation Law (UU Ciptaker) to make this happen.

The Job Creation Law is seen as strategic for advancing the national economy. The legislation contains a number of benefits that benefit both employers, investors and workers.

Fithra Faisal as an economist at the University of Indonesia said, the Job Creation Law is one of the strategic pillars to continue to push export figures to national economic growth. The Ciptaker Law has also been able to absorb labor to a strategy to escape the economic trap.

So far, investors who wish to invest in Indonesia still do not have clear legal products. Therefore a legal umbrella is urgently needed, one of which is the ratification of the Job Creation Law.

Meanwhile, the Special Staff for the Minister of State Secretary, Faldo Maldini, revealed the background to the presence of the Ciptaker Law in connection with the large number of overlapping regulations which were exacerbated due to the phenomenon of global economic uncertainty.

Currently, the world is also experiencing a crisis of economic uncertainty, including the role of Ukraine and Russia, so proper regulations are needed to overcome these problems.

Faldo also straightened out information where news had spread that the Job Creation Law was not pro-labor. Faldo stated that the issue was not true because labor unions could still speak freely.

Regarding TKA and TKI, apparently there are clear and regulated rules regarding the time for them to transfer knowledge, when the time provided is complete, they (TKA) will return to their country of origin.

Not only that, Faldo also answered another issue regarding the minimum wage. According to him, the minimum wage in the Job Creation Law was made to create equity in all regions.

In the same vein, Anggawira as Secretary General of the BPP (Indonesian Young Entrepreneurs Association) HIPMI explained based on his view that the Job Creation Law was a legal breakthrough to overcome the current economic challenges.

He considered that what was being done by the government and DPR RI this time was an attempt to solve all the challenges and problems that exist today. Moreover, economic challenges must be resolved in a comprehensive manner.

Anggawira added that the Ciptaker Law was an excellent product because it could synchronize one law with another so that another regulation could be created.

He said that the output of the Job Creation Law was indeed projected to provide simplification of the bureaucracy, so that business operations could be far more effective and efficient.

Furthermore, Anggawira considered that the formulation of the Ciptaker Law was also in accordance with procedures and involved many parties. Involvement of all stakeholders has also been carried out in the preparation of the task force and also in their respective fields.

On the other hand, the Job Creation Law was drafted with the aim of prospering and helping job seekers in Indonesia. Especially in the midst of a pandemic situation where the economy also stumbled.

On a different occasion, the Director of the Indonesian Employers’ Association (APINDO) Agung Pambudhi hopes that the government will resolve investment issues and try to go through derivative regulations on the Job Creation Law which are currently being drafted. So that the government must also be firm as the holder of policy authority in deciding licensing and legal regulations.

Entrepreneurs certainly really hope that licensing services will provide far more certainty than before the Job Creation Law existed. The existence of this certainty is of course the main attraction for investors or entrepreneurs. No wonder the Job Creation Law is often referred to as a sweeping law.

Referring to BKPM’s records, Indonesia has a vision to become the top five countries with the strongest economies in the world, and has a GDP of IDR 27 million per capita per month by 2045.

The Job Creation Law also regulates the ease of developing MSMEs, among other things, MSME business activities can be collateral for accessing business financing loans. Not only that, the process of registering Intellectual Property Rights (IPR) is also said to be made easier and simplified.

As for expanding the market and promoting their products, MSMEs also get greater opportunities in toll road rest areas and public infrastructure such as terminals, airports, ports, train stations and others.

The Job Creation Law provides regulations that make it easier for MSME actors to develop their businesses, apart from that these regulations also make it easy for job seekers, both new workers and those who have been affected by layoffs.

The purpose of passing the Job Creation Law is none other than to increase the degree of public welfare, with the various facilities offered, employers, workers and investors will have a strong legal basis to be able to carry out their activities.

)* The author is a contributor to Yudistira Institute

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