JAKARTA, KOMPAS.com – Indonesia’s President Joko 'Jokowi' Widodo has finally addressed the issue on the new controversial Job Creation Law, saying one of the key reasons for passing the law is to create new jobs in the country.
“Why do we need the Job Creation Law? First, every year there are 2.9 million new working-age population, the young people who enter the marketplace,” Jokowi said, adding that the need for new jobs is urgent.
The President went on to say that unemployment rate has also increased. Moreover, the ongoing Covid-19 pandemic has affected the lives of many people.
“Amid the pandemic, about 6.9 million have lost jobs, and 3.5 million others are also affected by the Covid-19 pandemic,” Jokowi said at Bogor Presidential Palace on Friday.
Indonesia's workforce is currently dominated by workers with lower levels of education, the President explained. Nearly 87 percent of the labor force, Jokowi said, have a high school diploma and lower, while 39 percent have only completed elementary education.
“So it is necessary to push the creation of new jobs, especially in labor-intensive sectors,” said Jokowi.
“The Job Creation Law aims to create as many jobs as possible for jobseekers and unemthe jobless,” he said.
The House of Representatives voted on Monday to pass the Omnibus Bill into Job Creation Law which aims to improve the investment climate in Indonesia despite opposition from labor unions.
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