He made the remarks during an online press conference originating from the Presidential Palace, Bogor on Friday.
The President said he had chaired a virtual limited meeting with government officials and governors on the law.
“The government believes that through this law, millions of workers will improve their lives and the livelihoods of their families,” he added.
He then explained the reasons for drafting the law, including the need for creating a large number of jobs for the Indonesian people. Every year, 2.9 million youngsters join Indonesia’s working age population, and are ready to enter the labor market, he said.
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The need for jobs is also increasing because, in the midst of the COVID-19 pandemic, many companies have terminated the employment (PHK) of workers, he added.
“Especially in the midst of the pandemic, there are approximately 6.9 million unemployed and 3.5 million workers affected by COVID-19; and, as many as 87 percent of the total working population has a high school level education and below, where (as) 39 percent have primary school education; so, it is necessary to encourage new job creation, especially in the labor-intensive sector,” the President said.
“The job creation law aims to provide as many jobs as possible for job seekers and unemployed people,” he remarked.
The Head of State also stressed that it is not true that the provisions of Provincial Minimum Wage, District Minimum Wage, and Provincial Sectoral Minimum Wage have been removed from the law.
“This is not true because, in fact, the Regional Minimum Wage (UMR) still exists,” he said.
Widodo also said the wage would be calculated based on time and results under the new law.
“There are also those who say that the minimum wage is calculated per hour. This is also not true, there is no change with the current system. Wages can be calculated based on time and based on results,” he stressed.
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