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View all search resultsSomething that President Jokowi could have emphasized again and again since he broached the omnibus bill plans in his Independence Day speech in August, is that these pieces of legislation are essential if Indonesia is going to cash in on the demographic dividend — a phenomenon that occurs when the size of the working-age population of between 14 and 65 years outnumbers dependents.
The benefits of digitizing are abundant: Innovators with intelligent mining operations can raise margins by up to 20 percent. Technology advances can create more standardized processes — with consistently higher production levels — and improve worker safety.
The business community considers the 2003 Labor Law and its derivatives to be one of the factors dragging down the country’s competitiveness, as high severance pay requirements and high wage requirements have discouraged labor-intensive, smaller enterprises from investing in the country.
A representative of an employers' association suggests that ratification of the convention would require thorough consideration and preparation as it could create complications for its members.
Laws and regulations are needed to provide workers with strong bargaining power, and the government guarantees the freedom of workers to set up organizations or trade unions. However, overly protective labor legislation could kill the goose that lays the golden egg.
With the jobs market becoming increasingly flexible, the Manpower Ministry is exploring options to protect workers who are laid off or whose contracts are not renewed. Unemployment insurance is one of those options, according to Manpower Minister Hanif Dhakiri, another is training and certification for the jobless.
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