After Commission I of the RI House of Representatives released the Job Creation Bill, some contents of the bill comprised several different procurements from Law Number 13 of 2013 concerning Manpower, which earlier managed the basis for labor affairs and industrial relations.
According to a lecturer at the Faculty of Social and Political Sciences UGM, Prof. Dr. Tadjuddin Noer Effendi, M.A., some regulations within this bill are a response to the fundamental changes that have occurred in a few recent years.
"Recently, in a few years, there have been fundamental changes, starting from the entry of 4.0 technology and now the Covid-19 pandemic," he said on Friday (9/10).
He also explained that the era of technology 4.0 led to industrialization transformation changes, especially applying technology in the production process, managing to the labor market changes.
At present, industrial sector workers are compelled to have technological skills (IT and digital). So occurs a threat of employment termination for the workforce who do not have skills that match the labor market's needs.
He also said that the Covid-19 pandemic is more complicating labor issues in Indonesia and even in the world while facing these challenges. The government was striving to limit people's movement through the PSBB or "lockdown" strategy to prevent the spread of pandemics.
Tadjuddin also revealed that this policy implies that economic activity and production decline followed by the number of workers laid off and layoffs that continue to increase.
This phenomenon has contributed to many industries, especially those running in China, to move production locations to countries that are considered strategic.
Tadjuddin said that this condition is an opportunity for Indonesia to attract investment and ultimately create massive employment opportunities for the domestic workforce.
"So far, one of the burdensome things for investors to enter Indonesia is that the 2013 Manpower Law is considered restrictive. Moreover, Indonesian workers who also tend to have unsupportive skills," he explained.
He assumed that this was the opportunity that the Indonesian government is trying to exert so that some regulatory changes require to be made to compete with other countries.
"In the middle of Covid-19 pandemic conditions, unavoidably, there must be changes, significantly since our economic growth has decreased (minus). The only way to overcome economic development should be a requirement on investment because it will be challenging to lift economic growth without investment. This Job Creation Bill is expected to attract investors to invest their assets in Indonesia," said Tadjuddin.
Translator: Natasa A