58.8 Million People Need Jobs, Coordinating Ministry For The Economy: The Job Creation Law Is The Solution

Coordinating Ministry for Economic Affairs Building. (Angga Nugraha / VOI)

JAKARTA - The Coordinating Ministry for the Economy said that currently there are 58.5 million Indonesians who need jobs. However, the problem is that currently available jobs are limited. This is because the COVID-19 pandemic is causing pressure to all business sectors.

Deputy of the Coordinating Ministry for Macroeconomic and Financial Coordination, Iskandar Simorangkir, said the unemployment rate in Indonesia had increased by 2.67 million people from the position in August 2019.

Iskandar said, currently there are 2.4 million new labor force, 9.7 million unemployed, 13.1 million underemployed, and 33.3 million part-time workers. So that the total number of workers who need employment becomes 58.5 million people.

Meanwhile, said Iskandar, the latest BPS data states that 46.4 million Indonesian workers work on a part-time basis. This means that the productivity of this part-time workforce has not been optimal.

"What if it is full 100 percent, we encourage him? Of course productivity will increase. Therefore, a breakthrough is needed to absorb Indonesian workers. Be it new workers, or people who have not worked optimally," he said, in a virtual discussion, Wednesday, December 2.

Iskandar said, to be able to absorb the workforce, it cannot be done in an ordinary way. Moreover, Indonesia will be faced with a demographic bonus in which Indonesia is flooded with working age population.

Furthermore, Iskandar said, for this condition the government was present by creating regulations that could overcome the problems currently being faced, namely the Omnibus Law on Job Creation. Through this regulation, investment will enter the country.

"We need investment to absorb labor from new workers, from unemployment, from those who are half working earlier. Therefore, what do we need to do? Economic transformation," he said.

Previously, the Minister of Manpower Ida Fauziyah said that the government's effort to reduce the current unemployment problem was by issuing a Job Creation Law. This is because the regulation will later encourage the investment climate and will create wide employment opportunities in the country.

"Among them are structural transformation and economic transformation through the Job Creation Law. We hope that the expansion of job opportunities will occur. I encourage domestic and foreign investment to enter. We encourage domestic investment," said Ida, in Jakarta, Friday, 27. November.

In addition, another effort from the government is to invite dialogue between employers and workers to find out what problems have occurred. It is hoped that later with this discussion, there will be no more decisions to terminate employment (PHK).