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Omnibus Law Cipta Karya is an Effective Way to Save the National Economy

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By: Muhammad Yasin) *

JAKARTA – The Draft of the Omnibus Law Copyright Work Draft reaps the pros and cons in the community. While the government believes this regulation was created to create jobs, by encouraging investment through simplification and harmonization of regulations and permits. In fact, the Omnibus Law created is believed to be a powerful move to save the Indonesian economy affected by the Corona Virus outbreak.

Arif Budimanta as Special Staff of the President of the Republic of Indonesia said that the government continues to work to create jobs in Indonesia. One of them is by encouraging investment through simplification and harmonization of regulations and permits.

Arif said, the government wanted to create broad and equitable employment opportunities. Points targeted in this bill include increasing the competence of job seekers, increasing productivity and welfare of workers, increasing investment, ease of doing business, and empowering MSMEs and cooperatives.

At present, the dynamics and changes in the global economy are so fast that there needs to be regulations that can welcome these changes. The Work Omnibus Law Bill is a regulation that is expected to be able to answer these problems. Where, changes in economic structure are expected to drive economic growth above 5.7 percent.

The work copyright bill consists of 15 chapters and 174 articles. Some of the substance that regulates licensing, business ease, investment and MSME or cooperatives is 86.5 percent. While the rest discussed employment, economic zones, imposition of sanctions, as well as research and innovation.

We need to know that regulations related to business licensing or investment in Indonesia still seem complex with a variety of bureaucracy who are obese both at the central level to the regional level with a total of 43,604 regulations. In addition, Indonesia’s competitiveness rating is still low.

The government certainly cannot be silent if knowing the high workforce that is not or has not worked or not full work is also a consideration. From the data there are 7.05 million unemployed, 2.24 million new workforce, 8.14 million half unemployed and 28.41 million part-time workers. This means that there are 45.84 million or 34.4 percent of the workforce who work not full.

The work copyright bill also considers conditions regarding the uncertainty and slowdown in the global economy. Where, there is a trade war, tensions in the Middle East to the Corona virus quite influential on the world economy and in Indonesia.

This bill is still open for discussion and harmony in the Indonesian Parliament. Of course the input and aspirations of the public and stakeholders conveyed to the Government will also be brought in discussions with the DPR RI.

Meanwhile, the Vice Chancellor of UGM in the Field of Cooperation and Alumni, Plenary also agreed on the importance of creating jobs and increasing competitiveness. According to him, one problem that must be overcome is the overlapping of regulations to facilitate investment. If there are no investors, there will be no employment.

So that the Employment Creation Bill is expected to be a big leap to win competition and advance the national economy.

Sociologist from the UGM Department of Sociology, Faculty of Social and Political Sciences, Arie Sujito, believes that the Cipta Karya Bill is a major improvement effort to transform Indonesia’s economy in the future. Simplification and harmonization of regulations and permits certainly become the main note.

On a different occasion, Minister of Cooperatives and Small and Medium Enterprises Teten Masduki said that the omnibus law on the Cipta Karya Bill would increase the ease of access to finance for MSMEs.

The Universal Sweep Bill will enable business actors to enable business actors to guarantee something that is not an asset to obtain bank credit. Teten said, business operators can guarantee a work contract.

He stressed that banks must follow the rules, this is expected to be an answer for MSMEs who have difficulties in getting financing because they do not have assets that can be pledged.

The government also guarantees partnerships for MSMEs with corporations. According to Teten, MSMEs that can grow are those who have successfully cooperated with big players.

Meanwhile, the impact of corona was felt most severely by the labor-intensive sector and MSMEs. There is the potential for large-scale layoffs in the MSME Industry as well as many who are threatened out of business.

With the Omnibus Law Cipta Karya, of course the regulation is expected to be able to recover the economy after corona or co-19 in Indonesia. So the Omnibus work law is an effective move to save the national economy.

) * The writer is a Pakuan Bogor University Student

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