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IDEAS: Workforce Concept in Omnibus Law Inapplicable in Indonesia

9 October 2020 18:44 WIB

Hundreds of laborers of the Indonesian Prosperous Workers Union (SBSI) 92 stage a demonstration near the TVRI Office in Senayan, Jakarta, Thursday, October 8, 2020. TEMPO/M Taufan Rengganis

TEMPO.CO, Jakarta - The Institute for Demographic and Poverty Studies (IDEAS) on Thursday has blasted the flexible labor market concept brought up by the Omnibus Job Creation Law, saying this law accommodated corporations to recruit and lay off their workforces.

“At a glance, the concept that they offer seems alluring,” said theorganization’s researcher, Askar Muhammad, in a written statement on Thursday, October 8. “This confirms that the law is meant to suppress the cost of recruitment and laying off workers.”

Askar said the concept the Job Creation Law offered was only applicable in countries that already had exceptional human resources, such as Singapore, Denmark, Germany, and other Scandinavian countries. 

IDEAS believed it was inapplicable in Indonesia, where its workforces were dominated by low-skilled workers. It also feared that if the law was implemented in a market that was not prepared for it, it would only cause disparities between skilled and low-skilled workers. 

A flexible workforce market, said Askar, would be beneficial to high-skilled workers and the skill sets they owned. On the other hand, low-skilled workers would surely face difficulties in getting work if they faced layoffs, he remarked . 

Read: Expert Fears COVID-19 Cases Spike After Anti-omnibus Law Protests

FAJAR PEBRIANTO 



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