Observer: Ciptaker Law Create Flexible Labor Market

Illustration - Workers or workers in a cigarette factory in Madiun Regency working (Photo: Antara)

JAKARTA - Executive Director of The Indonesian Institute, Center for Public Policy Research (TII) Adinda Tenriangke Muchtar assessed that Law (UU) Number 11 of 2020 concerning Job Creation creates a flexible labor market in Indonesia.

"This law tries to create a flexible labor market in Indonesia. Rigid, fat, and prone to corruption regulations will clearly hamper people's opportunities to work," said Adinda.

According to him, job opportunities will be more widely opened if freedom of business is also facilitated, this is what the Job Creation Law is trying to encourage.

Not only that, this Law also considers workers' rights including referring to the existing Manpower Law.

"Of course, in matters not contained in this law, it does not mean neglecting workers' rights and employer responsibilities," said the economic observer.

In principle, economic freedom is still based on the agreement of the parties and not coercion, let alone violence. This is where the role of the government should be emphasized and the state is present, through law enforcement.

Problems with economic growth and freedom, including freedom of business, cannot be separated from the problem of fat and overlapping regulations, and are proven to be prone to corruption and high business costs.

"The Job Creation Law is intended to encourage regulatory efficiency, including to increase investment," said Adinda.

This law also has the potential to assist the manufacturing sector in Indonesia, considering that this sector alone can require a construction permit of up to 200 days. Not to mention other transaction costs that must be faced in the regions.

"With regulatory efficiency and ease of doing business, which of course must be followed by a clear commitment and law enforcement, will provide legal certainty for entrepreneurs and investors to build more manufacturing industries in Indonesia and other sectors," said the observer.