"Of course, we are so optimistic that the Job Creation Law will (work) as expected, that is (it would be) capable of creating a conducive investment climate and also promote more job vacancies," Director General of Industrial Relations and Workforce Social Insurance at the Ministry Indah Anggoro Putri said in a statement received here on Tuesday.
She informed that the realization of investment in the first quarter of 2023 reached Rp328.9 trillion (US$22 billion), an increase of 16.5 percent year on year.
Putri stressed the importance of the law for protecting national interests, given the uncertainty in the global economy in 2023, which has been predicted by many global institutions.
"This serves as our anticipatory measure in facing that uncertainty as well as to ensure legal basis," she said.
The Job Creation Law will also ensure the safety and protection of employees, she added, as the law states that employers cannot terminate employment one-sidedly.
Moreover, employees who get terminated from their jobs will need to be given severance pay and other additional pay, Putri said. They will also be eligible for Job Termination Insurance (JKP), a kind of social protection insurance, she added.
"When there is an issue in employment, it must be resolved through available mediation methods, from bipartite negotiations to industrial relations courts," she said.
Meanwhile, secretary of the directorate general of industrial relations and workforce social insurance at the ministry, Surya Lukita Warman, said that the Job Creation Law would ease investment as well as the establishment of businesses, thereby supporting easier job creation.
Warman noted that to date, the law has had a positive impact on the national investment scene.
The World Bank stated that in 2022, the realization of foreign investment in Indonesia grew 59.4 percent. The Organisation for Economic Co-operation and Development (OECD) also noted that the law reduced issues involving investment by 10 percent.
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Translator: Zubi Mahrofi, Mecca Yumna
Editor: Azis Kurmala
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