Muhammad Hendartyo, Jakarta – Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said the omnibus law on job creation would increase labor absorption. He said that more than 3 million new workers will be absorbed.
"With the omnibus law, we can add 2.7 to 3 million new jobs, maybe more," Luhut said after attending the Katadata Indonesia Data and Economic Forum in Jakarta, Thursday, January 30.
Investment Coordinating Board chief Bahlil Lahadalia had said that investments in Q4/2019 absorbed 330,539 Indonesian workers. Throughout 2019, labor absorption reached around one million people.
Bahlil said that economic growth these days does not create as many jobs as it is used to, because in this age human labor has been largely replaced by technology.
In 2013, he said, one percent of economic growth could absorb up to 270,000 workforces. But now, he said, one percent of economic growth is only able to absorb no more than 110,000.
"Not all of our investments are in the manufacturing sector, not all of them are in the labor-intensive sector. And some of the labor contributions at the beginning were replaced by technology," he said.