The dilemma arises when such regulations confront demands for labor market flexibility in the context of global economic competition. Investment is viewed as the main driver of job creation, yet investment requirements often demand labor flexibility that weakens worker protections. This tension is most apparent in the controversy surrounding the Job Creation Law, which many critics argue represents excessive deregulation at the expense of labor rights for the sake of economic efficiency.
Accordingly, the main employment challenge in Indonesia is not merely the quantity of jobs available but the quality of those jobs. Job creation without ensuring decent standards will only increase the number of working poor and exacerbate socio-economic insecurity. Therefore, it is vital to examine how labor law can function as an instrument to balance job creation with the protection of workers' rights. This article analyzes the gap between job quality and job availability in Indonesia through a normative-juridical and sociological perspective. The analysis aims to provide academic contributions to labor law development while offering policy recommendations for sustainable and equitable employment policies.
Literature Review
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Labor Law Theory
Labor law essentially regulates industrial relations between workers and employers, with the state serving as supervisor and regulator. According to Asyhadie (2016), labor law must ensure the attainment of social justice for both workers and employers. The Concept of Decent Work
The ILO introduced the Decent Work agenda as a global standard to ensure that every individual has access to productive, dignified, and legally protected work. Decent work comprises four pillars:Rights at work
Opportunities for productive employment
Social protection
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Social dialogue
National Regulations
Indonesia has adopted decent work principles through:
