Page 10 - e-KLIPING KETENAGAKERJAAN 8 JANUARI 2020

Reskilling, therefore, was key as the IBM's Institute for Business Value also noted
that 120 million workers from the world's 12 largest economies, including Indonesia,
may need to participate in reskilling programs in the next three years as a result of
automation enabled by artificial intelligence.

Airlangga said the planned omnibus law would also regulate working hours, wage
calculation and micro, small and medium enterprises workers. "Work agreement and
workers' rights will be guaranteed. There is a possibility that wages could be based
on working hours or day [but] we will provide more flexibility."

According to the World Bank's ease of doing business index, which placed Indonesia
at 73rd position, the country's rigid employment and minimum wage regulations are
among factors causing the country's stagnating rank.

"Strict employment protection legislation shapes firms' incentives to enter and exit
the economy, which in turn has implications for job creation and economic growth
[...] A 10 percentage-point increase in the minimum wage in Indonesia was
associated with a 0.8-percentage point decrease in employment on average," the
report reads.

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