List of 7 hoaxes denied by Jokowi on the Job Creation Act page

JAKARTA, KOMPAS.com – President Joko Widodo (Jokowi) finally issued an official statement after mass demonstrations in various regions on the rejection of ratification of the Job Creation Omnibus Bill in the Job Creation Law in the DPR.

Jokowi explained several reasons for the need for the Job Creation Law to encourage job creation by stimulating the investment climate coming into Indonesia.

The former governor of DKI Jakarta then referred to misinformation or deception related to the controversial Job Creation Act. The spread of misinformation has become one of the triggers for mass demonstrations.

The following is a list of 7 hoaxes denied by Jokowi as cited on Saturday (10/10/2020):

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1. Minimum wages are eliminated

Jokowi emphasized that the minimum wage in the Employment Creation Law still applies as has been regulated in Law Number 13 of 20013 on Employment, both UMP and UMK.

“I take an example of information that establishes the elimination of the Provincial Minimum Salary, Regency Minimum Salary, Provincial Sectorial Minimum Salary. This is not true because in fact the Regional Minimum Wage still exists, ”said Jokowi.

In fact, the Omnibus Law on Cipta Kerja eliminates the suspension of the payment of the minimum wage. Furthermore, the government claims that this new regulation increases the protection of workers.

2. Hourly wages

Jokowi also denied the issue of workers being paid by the hour. He stressed that the scheme still uses the old rules. Hourly counting in the Employment Creation Law is done to facilitate self-employed workers and so on.

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“There are also those who say that the minimum wage is calculated by the hour. This is not true either. There is no change in the current system, wages can be calculated based on time and based on results,” he said.

3. The license is removed

Jokowi emphasized that the Job Creation Law did not eliminate the license rights of employees at the company at all. Employees continue to receive leave such as maternity leave, menstrual leave and regular leave in accordance with the Employment Law.

“Then there was news that all leave, sick leave, marriage, circumcision, baptism, death, maternity leave were abolished and there was no compensation. I affirm that this is not true either, the right to leave is maintained and it’s guaranteed, “he said.

4. Unilateral dismissal

He then spoke about the news in the Employment Creation Law that allowed companies to unilaterally fire without clear reasons. According to him, the Employment Creation Law still regulates what are the limitations of a company when it comes to layoffs.

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“So, can companies unilaterally fire their employees at any time? This is also not true. It is true that companies cannot unilaterally fire their employees,” Jokowi said.

5. Amdal is eliminated

Jokowi denied that the Cipta Kerja Omnibus Law removes the company’s obligation to process an Amdal permit. He said, Amdal has yet to be met, but the process is facilitated in the Employment Creation Law.

“What is also often incorrectly reported is the removal of Amdal, environmental impact analysis. That is also not true. Amdal still exists for large industries, it must be rigorous EIA studies but for MSMEs, more emphasis is on assistance and supervision, “Jokowi said.

6. Land grabbing

According to Jokowi, the Employment Creation Law regulates the issue of land banks in which regulation is needed to facilitate the process of acquiring land for infrastructure works in the public interest.

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Then it was reported that the existence of a land bank, land bank, was necessary to guarantee public interests, social interests, interests of social development, economic equality, the economy of territorial consolidation and agrarian reform. This is very important to ensure public access to land ownership and resilience and so far we have not had the land bank, “he said.

7. Centralization of the center

Finally, Jokowi also mentioned the role of the regions that are cut in the investment facility because their authority has been transferred to the center in the Employment Creation Law.

“I also emphasize that the Employment Creation Law does not carry out a recentralization of authority from the regional government to the central government, no, nothing. Licensing and business authority is still carried out by the local government of agreement with the NSPK established by the central government to create good service standards throughout the regional government and the determination of NSPK will be regulated later in PP or government regulations, “said Jokowi.

“Apart from that, the authority to grant licenses for businesses that do not grant licenses remains with the local government so there is no change. We even simplified, standardized the types and procedures of doing business in the regions and allowed the permits in the regions to have a deadline. The important thing here is that there is an agreed service level, the license request is considered approved once the term expires, “he said again.

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