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Job Creation Law Simplifies Regulations and Overcomes Investment Barriers

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By : Naufal Putra Bratajaya )*

The Job Creation Law (UU) passed by the Indonesian government in 2020 is one of the careful steps to simplify regulations and overcome obstacles to investment, so that it can encourage more comprehensive economic growth in Indonesia.

The Job Creation Law indeed became a polemic when it was first passed, but until now the government continues to improve it through the Task Force for the Acceleration of Socialization of the Job Creation Law by absorbing the aspirations of the community.

The aim of the Job Creation Law itself is to ensure that its benefits are felt by all levels of society, one of which is that this law is designed to simplify complicated regulations that can hinder investment. Therefore, the government hopes that the implementation of the Job Creation Law can open up wider job opportunities for the Indonesian people, and attract more investment, both domestic and foreign.

The Coordinating Minister (Menko) for Economic Affairs, Airlangga Hartarto, assessed that since the introduction of the Job Creation Law, many positive things have happened, especially in the world of labor, business and the economy.

With easy regulations, it will also make it easier for business actors, including micro, small and medium enterprises (MSMEs), to develop further and make a major contribution to the national economy.

Talking about easy regulations, the Job Creation Law will also make things easier for MSMEs in terms of simplifying licensing and easier access to financing. Not only that, the target of the Job Creation Law is also to increase the competitiveness of Indonesian workers.

Secretary of the Job Creation Law Task Force, Arief Budimanta, said that currently the Job Creation Law has a new digital-based breakthrough, namely, the business licensing process is already in one door, namely Online Single Submission (OSS) which is risk-based. It is also hoped that the presence of OSS as a new breakthrough will increase the attractiveness of domestic and foreign investment significantly.

Arief explained that the task of the Job Creation Law Task Force has an important role, namely, to be a bridge between the central and regional governments and business actors and civil society. This task force was also formed to mobilize all ministries and institutions, including regional governments, to physically implement and also accommodate the pros and cons that arise from stakeholders regarding the Job Creation Law.

Arif also emphasized that the Job Creation Law can help analyze the demographic bonus by creating jobs, making it easier for everyone to carry out business activities for anyone, not just large businesses, but also small businesses, from various aspects, including ease of licensing, access to capital, to employment aspects. .

Human resources (HR) in Indonesia must be improved, through the Job Creation Law, improving the quality of the workforce has been regulated to support training and skills development programs. The aim is to improve the quality of national human resources so that they are better prepared to face ever-growing work challenges. Especially for the nation’s next generation who are currently in the digital world and have many new potentials that must be developed, so that they are able to compete on the global stage.

Apart from geographical conditions, Indonesia also has great potential in the attractive economic sector, moreover, the diversity of biological resources is very large and has not been explored. With the presence of the Job Creation Law, it will build a new culture that is more affirmative, inclusive, accountable and responsible. So it is not difficult to increase national economic growth, especially with the conveniences that have been provided.

So far, there have been many misunderstandings regarding the Job Creation Law which are considered wrong, even though there are three main points in the formation of the Job Creation Law, namely providing convenience, protection and empowerment for MSMEs. Ease for entrepreneurs in managing their businesses, protection for workers, and empowerment of local MSMEs to continue to progress.

The government continues to strive to carry out various outreach and training, so that it can ensure that all levels of society, especially business actors and workers, can understand and be able to implement it. It is also hoped that the values ​​contained in the Job Creation Law will create a more professional work environment and uphold ethics in work.

It can be concluded that public support for the presence of the Job Creation Law is very important in order to improve the quality of the country’s economy and increase economic growth that can be felt by the entire community. Moreover, to ensure successful implementation in creating a conducive business environment and increasing Indonesia’s competitiveness in the international arena.

Support for the Job Creation Law is not just a few parties, but also involves all parties including the government, business actors, and the community who can collaborate well in the current era of globalization and to create a strong economy.

With a lot of support coming, this will increase political stability, currency stability, and also increase the productivity of goods in Indonesia. The welfare of the country will also follow. The public is also encouraged to always support the implementation of the Job Creation Law which has been proven to be able to increase the competitiveness of the Indonesian economy at the global level.

)* The author is a contributor to the Inti Media Institute

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