In early October 2020, the Indonesian Government and the DPR agreed to the Omnibus Law on the Job Creation Act (Ciptaker Law). However, in the formulation process until its ratification, various pros and cons emerged from various stakeholders, from labour groups, the Micro, Small and Medium Enterprises (MSMEs) sector, including the poor who fall into the mustahik zakat category.

By using the method of content analysis and discussion with related experts, Puskas BAZNAS published a Policy Brief aims at further exploration as well as being objective and balanced regarding the implications of the Ciptaker Law on workers, the MSME sector and mustahik. The results of the analysis show that the Ciptaker Law has a positive effect on job creation in the long run, because it makes it easy for companies to operate efficiently and effectively. Then, the Job Creation Law has a very positive impact on strengthening the MSME sector.

However, in the short term, the Ciptaker Law has negative implications for workers in at least six aspects, namely related to the regulation of foreign workers, certain and unspecified time workers, outsourcing practices, working time, laying off and severance pay.

In addition, the Ciptaker Law also does not take sides with workers in the informal sector in Indonesia. Thus, the Ciptaker Law in the short term has the potential to create new poverty clusters in Indonesia. Therefore, the Policy Brief published by BAZNAS Puskas tries to provide relevant recommendations for relevant stakeholders, so that the short-term effects of the Ciptaker Law can be handled properly. 

The policy brief can be further read in Bahasa here.