Impact of the Implementation of The ASEAN Economic Community and the Job Creation Law For Labor

Abstract

ASEAN as a regional organization in Southeast Asia has a vision to create a Southeast Asian region peaceful, safe, stable, and prosperous. Based on that vision, an ASEAN leaders was agreed to declare ASEAN Bali Concord II which it called ASEAN Economic Community (AEC). An impact of AEC is expected to resolve the development gap and accelerating the integration of ASEAN countries. The AEC merges the boundaries of the ASEAN countries into a unite free market in all ASEAN members and become a single market.The Indonesian government responded to the implementation of this AEC by enacting Law Number 11 of 2020 concerning Job Creation. This Law aims to create jobs and increase foreign and domestic investment by reducing regulatory requirements for business permits and land acquisition. The Job Creation Law is expected to provide convenience for opening businesses and investments, the implication is to absorb more workers.