By: Alma Septiyani)*
The COVID-19 pandemic has not only had a major impact on the world economy but also nationally, the threat of COVID-19 to the Indonesian economy is very significant. This also makes the unemployment rate in Indonesia higher so that it is necessary to create quality jobs through investments that are able to absorb labor. Investment is one of the most important economic activities for Indonesia, besides being able to reduce unemployment, investment also plays a role in increasing the per capita income of the Indonesian state.
The government appreciates the response of foreign investors and the optimism about the ease of investment in Indonesia based on the results of a study conducted by Standard Chartered. The Borderless Business Studies survey conducted by Standard Chartered shows that the United States (US) and European companies rank Indonesia as the 4th most favored country in Southeast Asia in terms of opportunities to build or expand company resources, sales, or operations over the past 6 years. up to the next 12 months. The study revealed that 42 percent of US and European companies see the greatest growth potential in overseas markets.
However, the investment climate and competitiveness in Indonesia are still lagging behind other countries (peer groups) such as Singapore, Malaysia and Thailand. This is reflected in the Ease of Doing Business (EODB) report released by the World Bank, Indonesia is still ranked in the top 6 countries in ASEAN.
Therefore, the Government will continue to encourage the ease of investing in Indonesia through improving the ease of doing business system, one of which is by issuing and passing the Job Creation Law as a step to improve the investment ecosystem in Indonesia.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the Government will continue to encourage promotions related to the ease of investing in Indonesia, by prioritizing investment issues and sustainable development. “The Job Creation Law, which is complete with all its implementing regulations, will provide certainty of ease of doing business and cut lengthy permits for investors, thereby increasing investor confidence,” said Coordinating Minister Airlangga.
“The implementation of the Job Creation Act in the ease of doing business will continue to be encouraged, the government will continue to improve the Online Single Submission (OSS) technology and digitalization, which aims to make it easier for business actors,” continued Airlangga. OSS, which consists of an information sub-system, business licensing and supervision, is expected to meet the needs of investors and the expectations of the business world.
The new risk-based OSS system (OSS RBA), has begun to be implemented on August 4, 2021. With the implementation of the OSS System, it will make it easier for business actors and especially Micro, Small and Medium Enterprises (MSMEs) players, through an easier registration system , not complicated and can be done online.
In addition to simplifying regulations and bureaucracy through OSS technology, the government will also provide fiscal and non-fiscal facilities to investors who will invest in Indonesia as a step to improve the investment ecosystem in Indonesia. Fiscal facilities that will be provided can be in the form of investment allowance, super deduction, or exemption from import duty. Meanwhile, from the non-fiscal side, it is in the form of ease of business or business licensing, ease of licensing for the implementation of business activities, provided business support infrastructure, and guarantees for the availability of fuel or energy and raw raw materials.
Through the ecosystem improvement carried out by the Indonesian government, it is hoped that it will be able to attract and increase the confidence of both domestic and foreign investors to invest in Indonesia in order to increase economic growth and create many jobs for the people of Indonesia.
)* The author is a contributor to Kalpress
