By: Savira Ayu) *
The Job Creation Law is not just an ordinary law, but has a very powerful positive effect. Because this law can attract foreign investors to enter Indonesia. They trust the government, because it guarantees smooth running of business and makes permits easy to obtain.
Indonesia is a potential country because it has abundant natural resources and abundant human resources. But unfortunately the boom in population backfired, as they were fighting over positions to get jobs. Especially during the pandemic, there was more and more unemployment in this country.
The government enacted the Job Creation Law at the end of 2020 to help the community. They will get new jobs, because many foreign investors will enter Indonesia in mid-2020, 2021 and beyond. Investors are willing to invest and build factories, and reduce unemployment. Because they are guaranteed by the investment cluster in the Job Creation Law.
Ibrahim Assuabi, an economic analyst, stated that the Job Creation Law guarantees ease of investment, which will increase the confidence of foreign investors. The reason is that this law cuts down on complicated licensing. So that foreign investors will easily get permission when they want to start a company in Indonesia.
The ease of licensing provided by the Job Creation Law is given in this way: first, legality can be obtained faster, only a maximum of 7 working days. Second, permits can be arranged via the site, which saves time, effort and transportation costs. This online licensing is a new breakthrough, because the government wants to cut the bureaucracy that was previously confusing.
Online licensing also denounces corrupt practices, because brokers and unscrupulous individuals cannot ask for facilitation payments, so that business permits can be issued quickly. Foreign investors will be happy because basically, they don’t like this kind of delinquency. They feel helped because permits are easily granted and prioritized by the Indonesian government.
Various foreign entrepreneurs are interested in entering Indonesia after the Employment Creation Law was enacted. They are engaged in manufacturing and several other fields. The government even contacted Tesla’s boss, Elon Musk, so that he wanted to build a factory in Indonesia. It also guarantees that foreign investors are protected and supported by the government.
Why should foreign investors? This is due to the fact that they are the ones who have large capital, while Indonesia has human resources that can be used as workers. So that this collaboration will form a solid company, and generate large profits. The UMR in Indonesia is lower than the UMR in their country, which makes the factories here very profitable.
In addition, building factories in Indonesia will also reduce production costs. This is because factories made by foreign investors produce shoes, t-shirts, and other goods that are branded overseas, but are made in Indonesia. So that prices can be reduced, because transportation costs are reduced, and there is no need to bother dealing with taxes, customs, and others.
The population in Indonesia which is more than 200 million people is also profitable for foreign investors, because it is a very potential market. When the factory is in Indonesia and the consumers are mostly Indonesian citizens, their products will be guaranteed to sell well. Because people love this brand, which is considered cool and durable when used.
The existence of the Job Creation Law is beneficial for foreign investors, because they can build factories in Indonesia with easy permits. Besides that, the legality is also quick to come out and can be taken care of online. The entry of foreign investors will reduce unemployment in Indonesia, because they build new factories, which require a lot of employees.
) * The author is a contributor to the Cikini Press Circle and Students