Job Creation Perppu Not Implementing PKWT For Life

Illustration (Photo: Doc. Antara)

JAKARTA - Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation does not apply a Specific Time Work Agreement (PKWT) or contract workers can be valid for life.

"There is a period of PKWT. So, not for life," said Deputy Minister of Manpower (Wamenaker) Afriansyah Noor in the Moya Institute Webinar entitled "Work Creation Perppu and Economic Resilience" online, in Jakarta, Saturday night.

He explained, in the Job Creation Perppu, there is a period of PKWT and the provisions are further regulated in Government Regulation Number 35 of 2021 concerning Terms of Work Agreements, Power Transfer, Working Time and Rest Time, and Termination of Work Relations

"There are two types of PKWT, first PKWT based on the period stipulated by the legislation for a maximum of five years. Second, PKWT based on the completion of a certain work, whose term is set based on the agreement of both parties and also mentioned about the scope of completion of the work," he said as quoted by Antara.

He stated that the Government issued the Job Creation Perppu because of the urgent need to fulfill citizens' rights to work.

According to Afriansyah, the eruption of Ukraine's war and the global economic crisis are the basis for the government's consideration in issuing it.

"And what is important to explain is that this Perppu was born to carry out the decision of the Constitutional Court which mandates improvements through the amendment to Law Number 11 of 2020 concerning Job Creation," he said.

He continued, Indonesia still needs adequate employment so that it can survive the global economy as it is today.

However, there are several labor-intensive companies affected by the global economic crisis and this leads to reduced working hours and even reduced labor.

"These conditions make us issue this Job Creation Perppu. Before the 'fire' occurs, it is better for us to prevent it so that there is no big fire," he said.