By: Eko Prasetyo) *
In the Job Creation Law there is an investment cluster that makes it easy for foreign investors. So that they want to enter Indonesia and open a business here. Business actors also agree with the government that this law is very good for attracting investors. Because there have been major changes related to bureaucratic issues, licensing, etc.
The Job Creation Law is also called the Sapujagat Law, because it takes care of almost various fields. It contains articles that deal with the labor, economy, MSMEs, and investment sectors. It is hoped that the various articles in this law can fix various problems in Indonesia. So that Indonesian citizens can rise from the impact of the pandemic.
In the Investment Cluster Job Creation Law, business licensing for investors is made easier. So it is hoped that it will attract their interest to build factories in Indonesia. economist David Sumual sees the Job Creation Law as a magnet for investment in 2021. In that sense, 2021 is a moment of awakening after nearly a year of being hit by a pandemic.
When the Job Creation Law was just passed, several investors were already interested in entering Indonesia. Among them are investors engaged in the production of batteries, electric cars, etc. They promised to create a labor-intensive industry. So that it will automatically reduce the number of unemployed in Indonesia, because it takes a lot of employees.
Predictions like this are expected by the government. Because the only way to rise from the impact of the corona storm is to cooperate with foreign investors. Because they are the ones who have the funds to build factories and cooperate with local businesses.
When there is cooperation, the wheels of the economy will roll back and the industry will be excited again. There is no story about the factory being closed and employees being laid off. Because there are investors who will inject capital and save their fate. It’s a shame if the business is closed, because they already have enough names in Indonesia.
However, David warned, the government needs to disseminate the derivative regulations of the Job Creation Law to investors. The goal is for them to understand that there are structural reforms, in the sector of licensing, labor, and other investment issues. In the sense that 44 government regulations and presidential regulations need to be reported more widely, in order to increase investor confidence.
Currently, to manage foreign investment, there is already an institution called Sovereign Wealth Found (SWF), which is managed by Minister Luhut B Panjaitan. SWF has explored investors to several countries such as Japan and America. David suggested that SWF expand to Middle Eastern countries and beyond, to improve investment prospects.
The expansion of the wings to Saudi Arabia, the United Arab Emirates, and other countries in the Arabian peninsula is very appropriate. Because in this law there is an easy way for MSME entrepreneurs to get halal certification. So that if their products are halal, MUI will get great trust from Middle Eastern investors who prioritize the halalness of a product.
The effect of the Job Creation Law was devastating, as it increased the confidence of investors, especially from the Middle East. They are indeed looking for which countries are friendly to investors, and when the rules in Indonesia are relaxed, there will be mutually beneficial cooperation.
Investments that enter Indonesia will again stimulate the economic sector, so that Indonesia can be free from the threat of the monetary crisis volume 2. When investors are competing to enter our country, there will be many projects and factories that will be built. Thus reducing the number of unemployed and automatically increasing purchasing power. So that the country’s financial condition will improve again.
) * The author is a student of Pakuan Bogor University