Observer: Job Creation Law Is Necessary For Indonesian Economy In The Long Term

Illustration (Photo: Doc. Antara)

JAKARTA - Government Regulation in Lieu of Law Number 2 of 2022 concerning job creation (Perppu Ciptaker) still has a number of substances that invite the pros and cons of the public.

However, its presence is necessary for the long-term economy.

Adhitya Wardhono, an economist from the University of Jember, assessed that the government has taken momentum in drafting the Government Regulation in Lieu of Job Creation Law.

In terms of pros and cons, Adhitya thinks there aren't many.

"But apart from that, reading the long term of the Indonesian economy by looking at the momentum and even taking advantage of the momentum to quickly recover from bruising due to the pandemic requires adaptive policies," Adhitya said in a press release, Thursday, February 16.

Adhitya admitted that the urgency arose because many regulations for existing businesses were still complicated and overlapping.

As a result, this condition makes it difficult for entrepreneurs to set up or want to run their businesses.

"When investment increases, the impact will eventually lead to job creation which will reduce poverty or unemployment," Adhitya explained.

Overall, Adhitya said, the Government Regulation in Lieu of Job Creation Law supports full employment conditions and seeks to absorb as much of the workforce as possible through investment instruments and labor market flexibility.

"The Government Regulation in Lieu of Job Creation Law also seeks to create productivity and eliminate unnecessary costs. An example is the change in the calculation of the minimum wage which takes into account the rate of inflation and economic growth," he said.

However, Adhitya reminded the government not to ignore the pros and cons of Government Regulation in Lieu of Job Creation Law that emerged on the employment side.

"If you look at it from the employment aspect, it becomes complicated and tangled because there are many interests at play. Solving the problem carefully and wisely is the key," Adhitya suggested.

Previously, the Coordinating Minister (Menko) for the Economy Airlangga Hartarto assessed that the issuance of the Government Regulation in Lieu of Job Creation Law was very urgent and important in preventing an economic crisis from occurring.

Because of this, the former Minister of Industry pushed for the DPR to be able to approve the Government Regulation in Lieu of Job Creation Law to become law.

"In terms of the DPR RI being able to approve Perppu Number 2 of 2022 concerning Job Creation and agreeing on the Draft Bill on the Determination of the Perppu on Job Creation to Become Law," he said at a Government Work Meeting and the DPR RI Legislative Body regarding Perppu Number 2 of 2022 concerning Job Creation, on Tuesday, February 14.

Airlangga said, the Government Regulation in Lieu of Job Creation Law was issued to provide legal certainty for investment and the business world. Especially in the context of creating jobs and improving the welfare of workers and the community.

"We are optimistic that the government will be able to maintain and increase economic growth where in 2022 we can reach 5.31 percent which is the highest achievement during President Jokowi's tenure," he said.