"The improving conditions of Indonesia's economy could be seen with the year-on-year 5.72-per cent positive growth in the third quarter of 2022. The contribution of workers to drive the national economy is causal to the positive conditions," Hartarto stated during the Indonesian Employers Association (Apindo) 8th Industrial Relations Conference, as per the statement on Thursday.
The Job Creation Law offers greater protection for workers by perfecting labor policies to ensure they remain adaptive to changes and dynamics, he remarked.
The law ensures the rights of workers on fair wage, union, equal opportunity and treatment, as well as severance pay in dismissal, Hartarto noted.
The coordinating minister remarked that through the law, the government also protected employees hired through the fixed-term employment agreement (PKWT) scheme by necessitating them to provide compensation for employees upon the conclusion of the contract period.
The law also ensures protection for laid-off employees by establishing job-loss insurance (JKP) to ensure those who lost their jobs could have their basic needs fulfilled while improving personal competencies and seeking new job opportunities, he remarked.
He affirmed that laid-off employees could receive 45 percent of the last wage for the first three months, 25 percent for the next three months, and competency training and job vacancy information by the insurance.
The minister highlighted that economic transformation through the Job Creation Law is essential to realize the national goal to achieve the status of high-income country on its centenary in 1945.
"Hence, structural reform enacted by the Job Creation Law must be supported by all parties, including the employers, to ensure economic growth acceleration and creation of new jobs," Hartarto remarked.
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Translator: Agatha Olivia V, Nabil Ihsan
Editor: Sri Haryati
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