Cipta Kerja As Protection for Workers from the World’s Dynamics

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The government has just issued the latest regulations related to employment in Indonesia. The regulations contained in the Cipta Kerja Government Regulation in lie of Law (Perppu Cipta Kerja) number 2 of 2022 are a form of government protection for workers.

The Minister of Manpower, Ida Fauziyah said that from the employment side, this Perpu is proof of the government’s protection of workers.

Apart from that, this Perpu is also said to maintain business continuity to answer the challenges of developing labor dynamics. Ida said the employment substance regulated in the Perpu was basically a refinement of the previous regulation, namely Law 11 of 2020 concerningCipta Kerja.

“Improving the substance of employment contained in Perpu 2/2022 is actually the government’s endeavor to provide adaptive protection for workers/laborers in facing increasingly dynamic employment challenges,” he said in a written statement, Thursday (5/1/2023).

He added that several employment substances have been refined in this Perpu. First, the provision of outsourcing. The Cipta Kerja Law does not stipulate restrictions on the types of work that can be outsourced, whereas, in this Perpu, the types of outsourced work are limited.

With this arrangement, Ida said that not all types of work can be handed over to outsourcing companies. Later, the types or forms of work that can be outsourced will be regulated through government regulations.

Second, improvements and adjustments to the calculation of the minimum wage. The minimum wage is calculated by considering economic growth, inflation, and certain indexes. The formula for calculating the minimum wage, including this particular index, will be regulated in the PP.

Also in this Perppu, the governor is obliged to set the Provincial Minimum Wage. The governor can also set the UMK if the UMK calculation result is higher than the UMP.

“The word ‘can’ referred to in the Perpu must be interpreted that the governor has the authority to set the UMK if the calculated value is higher than the UMP,” he explained.

Third, affirmation of the obligation to apply the wage structure and scale by employers to workers or laborers who have worked for 1 year or more. Fourth, improvements regarding the use of disability terminology adapted to Law 8/2016 concerning Persons with Disabilities.

Fifth, improvement of references in the article governing the use of the right to rest for which the wages are still paid in full, as well as related to the benefits of the Job Loss Guarantee program.

Ida emphasized that the changes related to the substance of the workforce referred to the results of absorbing the aspirations of the Cipta Kerja Law which were carried out by the Government in several regions, including Manado, Medan, Batam, Makassar, Yogyakarta, Semarang, Balikpapan, and Jakarta. At the same time, studies have been carried out by various independent institutions.