A SOCIAL-ECONOMIC ANALYSIS OF THE IMPLEMENTATION OF THE JOB GUARANTEE PROGRAM IN INDONESIA
Keywords:
Social security, Job Loss Guarantee, job creation, stateAbstract
Social security is an essential component that is the responsibility of the state. In 2021, according to the mandate of Law no. 11 of 2020 concerning Job Creation, the government made the employment ecosystem more competitive by adding a social security component, namely Job Loss Guarantee (JKP), which will provide guarantees for workers to get severance pay if workers experience termination of employment (PHK). In principle, severance pay is the responsibility of the employer or company for the laid-off workers, which is an award from the employer for the employee's tenure and compensation. JKP's initial initiation was a middle way solution to continue providing workers' rights when layoffs occurred. Based on the derivative regulations of the JKP regulated in the Government Regulation (PP), One of the components in the JKP requires the government, thru the State Revenue and Expenditure Budget (APBN), to pay a contribution of 0.22 percent for each participant. This study aims to analyze the extent of the government's fiscal capacity to accommodate the mandate of Law No. 11 of 2020 concerning Job Creation. The data used are data on state spending thru the central government, government allocations for the social security function, and related general employment data. Based on the projection results using time series analysis, it shows that the estimated critical point for JKP will burden state spending starting in 2026 or 2027. Therefore, it is necessary to take concrete steps to anticipate the swelling of the JKP budget.
Downloads
References
Van Ginneken, W., Social protection for migrant workers: National and international policy challenges. European Journal of Social Security, 2013. 15(2): p. 209-221.DOI: https://doi.org/10.1177/138826271301500206.
Becker, G.S., Human capital, effort, and the sexual division of labor. Journal of labor economics, 1985. 3(1, Part 2): p. S33-S58.DOI: https://doi.org/10.1086/298075.
Mincer, J.A., The human capital earnings function, in Schooling, experience, and earnings. 1974, NBER. p. 83-96.
Maringe, F., Higher Education Market. International Encyclopedia of the Social & Behavioral Sciences (Second Edition). 2015.DOI: https://doi.org/10.1016/B978-0-08-097086-8.92118-4.
Gesthuizen, M., T. Van der Meer, and P. Scheepers, Education and dimensions of social capital: Do educational effects differ due to educational expansion and social security expenditure? European Sociological Review, 2008. 24(5): p. 617-632.DOI: https://doi.org/10.1093/esr/jcn021.
Liu, J., et al., Measuring the global disease burden of polycystic ovary syndrome in 194 countries: Global Burden of Disease Study 2017. Human Reproduction, 2021. 36(4): p. 1108-1119.DOI: https://doi.org/10.1093/humrep/deaa371.
Romer, D., Advanced Macroeconomics, 4th edition 1. . 2012.
Gomez-Salvador, R., et al., Labour productivity developments in the euro area. 2006, ECB Occasional Paper.
Viebrock, E. and J. Clasen, Flexicurity and welfare reform: a review. Socio-Economic Review, 2009. 7(2): p. 305-331.DOI: https://doi.org/10.1093/ser/mwp001.
Kregel, J.A., Economic methodology in the face of uncertainty: the modelling methods of Keynes and the Post-Keynesians. The Economic Journal, 1976. 86(342): p. 209-225.DOI: https://doi.org/10.2307/2230743.
Cai, F., A. Park, and Y. Zhao, The Chinese labor market in the reform era. China’s great economic transformation, 2008: p. 167-214.DOI: https://doi.org/10.1017/CBO9780511754234.007.
Vaalavuo, M., Deterioration in health: What is the role of unemployment and poverty? Scandinavian Journal of Public Health, 2016. 44(4): p. 347-353.DOI: https://doi.org/10.1177/1403494815623654.
Carter, J., M. Bédard, and C.P. Bista, Comparative review of unemployment and employment insurance experiences in Asia and worldwide, 1-112. 2013: ILO Bangkok.
Sharif, K. and W.Y. Bao, Theory and Instruments of Social Safety Nets and Social Insurance in Islamic Finance: Takafuland Ta’min. Economic Development and Islamic Finance, 2013. 231.DOI: https://doi.org/10.1596/9780821399538_CH08.
Morduch, J., Between the state and the market: Can informal insurance patch the safety net? The World Bank Research Observer, 1999. 14(2): p. 187-207.DOI: https://doi.org/10.1093/wbro/14.2.187.
Standing, G., The ILO: An agency for globalization? Development and change, 2008. 39(3): p. 355- 384.DOI: https://doi.org/10.1111/j.1467-7660.2008.00484.x.
Mackinder, S., Tracing the institutional barriers to the integration of the social protection and fragile states agendas within the World Bank. Journal of International and Comparative Social Policy, 2020. 36(2): p. 111-124.DOI: https://doi.org/10.1017/ics.2020.17.
Asis, L.C., Employability of Senior High School Graduates under TECHVOC Track with National Certification in Graphics and Animation from TESDA, 4(12). 2020.DOI: https://doi.org/10.26855/er.2020.12.002.
Morrison, T., Emotional intelligence, emotion and social work: Context, characteristics, complications and contribution. The British Journal of Social Work, 2007. 37(2): p. 245-263.DOI: https://doi.org/10.1093/bjsw/bcl016.
Blundell, R., et al., Human capital investment: the returns from education and training to the individual, the firm and the economy. Fiscal studies, 1999. 20(1): p. 1-23.DOI: https://doi.org/10.1111/j.1475-5890.1999.tb00001.x.
Burke, R.K. and W. Friedmann, Law in a Changing Society. In The Western Political Quarterly (Vol. 13, Issue 4). 2020.DOI: https://doi.org/10.2307/443759.
Chandler, R.C., The public administration dictionary,vol 1. 1982: John Wiley & Sons.
Mills, M. and P. Kanavos, Do pharmaceutical budgets deliver financial sustainability in healthcare? Evidence from Europe. Health Policy, 2020. 124(3): p. 239-251.DOI: https://doi.org/10.1016/j.healthpol.2019.12.002.
Fatás, A. and I. Mihov, The case for restricting fiscal policy discretion. The Quarterly Journal of Economics, 2003. 118(4): p. 1419-1447.DOI: https://doi.org/10.1162/003355303322552838.
Maas, M.L., et al., Issues in conducting research in nursing homes. Western Journal of Nursing Research, 2002. 24(4): p. 373-389.DOI: https://doi.org/10.1177/01945902024004006.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
