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Changing Indonesia's employment paradigm
The current work paradigm cannot answer this problem because of its excessive focus on job and worker protection.
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Workers assemble electric irons at a factory operated by PT Selaras Citra Nusantara Perkasa in Cileungsi, Bogor, West Java, on Aug. 19, 2020. (JP/Wendra Ajistyatama)
Changing the national employment paradigm is a necessity due to new developments in the global and Indonesian job markets as a result of the disruptive information technology revolution.
This challenge requires not only responsive and relevant public policies and adaptations, but also a new understanding and conceptual approach. Gone is the rigid national employment ecosystem.
Ideologically, the dynamics of the world of work revolve around two main issues: freedom and equality. Freedom is related to efforts to increase efficiency and market fluctuation, while equality is related to the role of the state in realizing social justice for all. The key public policy issue is to strike an optimal balance between promoting freedom and promoting equality.
The national employment paradigm starts from the idea that job security is fundamental for citizens to live a decent life, as mandated by the Constitution. The state is obliged to ensure job security for every working citizen.
This framework is called permanent work paradigm, in which the state protects people’s access to jobs so that they can work for a long period of time or until retirement age. The problem, particularly in the era of disruptions, is that the job market has turned more dynamic and competitive than ever.
When the economy and industry are forced to adapt to the rapid and massive development of information technology (IT), the character of work and the demand for labor also change. At this point, social risks arise and affect both workers and job seekers. The impacts include layoffs and failure to enter the labor market due to mismatch between competencies and job requirements.
Disruptions have resulted in a new flexible world of work. The economic-business mode, the character of the job, the demands for skills and even the working relationship have changed, which is why the state needs to adequately respond through labor policies that are adaptive to changes.
