Gov’t to Include Unemployment Insurance in Omnibus Law

Coordinating Minister for the Economy Airlangga Hartarto delivers a press statement after a limited meeting on the Drafting of Omnibus Law for Employment at the Bogor Presidential Palace, West Java, Friday (27/12). (Photo by: JAY/PR)

The Indonesian Government is preparing a new scheme on unemployment benefit through Omnibus Law for Employment.

Coordinating Minister for the Economy Airlangga Hartarto stated that the Government is preparing unemployment insurance which will be included in the plan of Social Security Provider Body for Employment (BPJS Ketenagakerjaan).

“For those who lose their jobs, they will get insurance from the Body. They will get as much as six months’ salary. There will also be training and job placement,” Airlangga Hartarto told the press after a Limited Cabinet Meeting on the Drafting of Omnibus Law for Employment at the Bogor Presidential Palace, West Java, Friday (27/12).

The Coordinating Minister also stated that the new policy can only be done through the amendment of the National Social Security System (SJSN) Law, one of which will be through Omnibus Law.” So, there are new facilities for employment,” he said.

In the future, Airlangga added, several government initiatives including Pre-Employment Card and unemployment insurance will also be launched.

The Government, according to Airlangga, will also facilitate micro and small enterprises to establish a limited company by simplifying its establishment, through online system.

“The online registration is facilitated so that each of these individuals can have a legal entity that protects them from the risks of doing business, so that the business risk is limited to the capital investment,” he said.

The Coordinating Minister went on to say that the Omnibus Law will encourage the informal medium and small enterprises to enter the formal sector so that the overseeing process by related ministries/agencies can run smoothly.

Airlangga also asserted that violation in business will be sanctioned by fines. An excessive violation, he said, can result in the revocation of business permit.

The Bill of Omnibus Law, Airlangga stated, will be discussed in the House of Representatives (DPR) during the new session of legislation. (UN/RSF/JAY/ES)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Ridwan Ibadurrohman
Proofread by: Yuyu Mulyani