Reasons Democrats Disagree With Confirmation Of Work Creation Bill

Deputy Chairman of the People's Consultative Assembly (MPR) RI Syarief Hasan (Photo: instagram syarief.hasan

JAKARTA - Democrat Party politician, Syarief Hasan, said he did not agree with the ratification of the Omnibus Law on Job Creation.

"And if this bill is to be passed by the DPR Plenary, then the Democratic Party will definitely reject it or ask to be postponed," said Syarief Hasan in Jakarta as reported by Antara, Sunday, October 4.

The Deputy Chairperson of the Indonesian People's Consultative Assembly (MPR) regrets that the government has not absorbed the aspirations of society in the draft bill.

In addition, said Syarief, many of the contents in the Omnibus Law Bill were rejected by elements of society in Indonesia because they were considered not pro to the people.

The problematic cargo, he said, is like the severance pay regulation which is decreasing in quality and without clear legal certainty.

"This bill will make it easier for companies to do layoffs because the severance pay is smaller," said Syarief.

The government and the DPR RI also agreed to include a new scheme, namely Job Loss Guarantee (JKP) in the Draft Omnibus Law to solve the problem of termination of employment (PHK) which is considered detrimental to workers.

JKP which uses the insurance scheme is considered to absorb quite a large amount of the State Revenue and Expenditure Budget (APBN).

Because, in addition to requiring the government to provide cash funds or cash data per month to layoff workers, the JKP-related regulations also require the government to prepare worker education and training to improve workers' skills and capacity and provide job information or channel workers to new jobs.

"This new rule is not even implementative, counterproductive, and not pro-people," said Syarief.

In addition, Syarief also said that there would be a missing minimum wage provision with the passage of the Work Creation Omnibus Law Bill, namely the provisions regarding Regency / City Minimum Wages (UMK).

"Because, Article 88C paragraph (2) only regulates the Provincial Minimum Wage (UMP). The UMP in almost all provinces is smaller than the UMK in the regency, except in DKI Jakarta. As a result, labor wages have become smaller and less feasible. This bill shows its impartiality towards workers, employees, and the common people, "said Syarief.

However, previously on 28 September 2020, the DPR and the Government only agreed to eliminate the provisions related to sectoral minimum wages, and still maintain the provisions related to the Provincial Minimum Wage and Regency / City Minimum Wages.

The government, represented by the Coordinating Ministry for Economic Affairs Expert Staff, Elen Setiadi, agreed with the decision to maintain the Provincial Minimum Wage and Regency / City Minimum Wage.

"The government conveyed two forms of minimum wages as safety net, the first is the provincial minimum wage, the second is the district / city minimum wage in accordance with the requirements that we submitted," said Elen at the Working Committee meeting on the Job Creation Bill.