Apindo Suggests Manpower Law Revision

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Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - The Indonesian Employers Association (Apindo) suggested President Joko "Jokowi" Widodo to revise the Manpower Law, specifically on provisions related to labour-intensive investment and pension insurance.

    "We had stated that the government needs to review the Manpower Law because our Manpower Law, in addition to has been subjected for review 15 times to the Constitutional Court, it is no longer appropriate for the current condition," said Apindo Chairman Hariyadi B. Sukamdani on Thursday, June 13, 2019.

    Hariyadi also mentioned regarding the massive relocation of labour-intensive investment to countries such as Myanmar, Laos, Bangladesh, and Vietnam. Whereas, Indonesia needs labour-intensive industries to absorb large number of workers with mid-level education background.

    Another point brought up by Hariyadi was the pension system. He explained that the current pension system adopts the fixed benefit system, which has significant fiscal risks.

    Hariyadi added that many countries have abandoned the fixed benefits system and convert to the fixed premium system. "We requested the government to review this system before it is too late," Hariyadi stated.

    Previously, President Jokowi had hoped for businesses not to be hesitant in providing inputs for the government. "I am saying what it is, because I have no burden. Please use this opportunity so that the breakthroughs that we wanted to do can provide effects for our economy," Jokowi said.

    Jokowi welcomed businesses to provide inputs, especially on prevailing regulations. The President even stated his readiness to issue a President Regulation in Lieu of Law (Perppu) to help businesses in advancing Indonesia's economics.

    "Maybe a law revision, or if needed, issue a Perppu, for example. If it is really needed and very important, we will issue it," Jokowi said.

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