VP underscores need for reform in labor market governance

Jakarta (ANTARA) - Vice President Ma'ruf Amin emphasized that reform in the governance of Indonesia's labor market is a necessity in the wake of the complexity of challenges in the world of employment.

"We must appreciate efforts for reformation in the governance of the labor market through the Job Creation Law," Amin said in his remarks at the opening of the Employment Festival 2024 here on Friday.

The vice president highlighted that with the simplification of licensing and provision of incentives for investment, the Job Creation Law will attract more domestic and foreign investment.

"The increase in investment is expected to open more new business opportunities and expand the existing businesses so that labor demand can increase," he remarked.

Amin stated that improvements on the supply side continue to be made by conducting revitalization of vocational training to encourage improvement in workforce competency through the construction of thousands of community-based Job Training Centers (BLK) and online vocational training.

"We also need to make improvements in the mechanism for determining fair minimum wage levels, both for workers and employers, and improvements in employment services, such as the Job Market Information System, to be more integrated nationally," he remarked.

He further explained that in addition to the internal factors, such as many people with low educational levels and working in the informal sector, the challenges in employment are also posed by external factors, namely digitalization.

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He noted that digitalization had made working hours more flexible and in addition to shifting the way people work, it also results in challenges. He affirmed that digitalization is increasingly widespread and developing along with the large number of members of Generation Z entering the labor market.

"It is undeniable that their superiority in using digital technology has brought changes in our old work culture and behaviors. The increasingly open work culture is what demands the labor market to become more competitive," the vice president remarked.