Increasing Investment and Employment: President Jokowi’s Economic Legacy through the Job Creation Law
By: M. Ofan Ramadhan )*
In recent years, Indonesia has experienced major changes in the economic sector, especially thanks to the implementation of the Job Creation Law. Under the leadership of President Joko Widodo, this policy is designed to accelerate economic growth, create jobs, and increase Indonesia’s competitiveness at the global level. In addition to attracting investment, the Job Creation Law also supports technological progress and industry 4.0, which are very important to face economic challenges and create a solid foundation for Indonesia’s future economic development.
According to Professor of Gadjah Mada University, Prof. Gunawan Sumodiningrat, the Job Creation Law offers several advantages compared to the previous Manpower Law. These advantages include increasing economic competitiveness, flexibility for workers and employers, ease in the business process, and economic empowerment in villages and regions. In addition, this law focuses on simplifying regulations for micro, small, and medium enterprises (MSMEs).
One of the main objectives of the Job Creation Law is to create a more investor-friendly environment. By reducing restrictive regulations, the law simplifies the business licensing process. The proposed reforms are expected to increase efficiency and transparency in business, which will attract more investment, both foreign and domestic. This is a strategic step to make Indonesia one of the ten largest economic powers in the world.
The Job Creation Law also has a positive impact on job creation. Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that this law will be a “big game changer” in driving economic transformation through regulatory reform and ease of doing business. With the right timing, this law is expected to open up many jobs and encourage entrepreneurship. Data from the ministry shows that the implementation of the Job Creation Law is expected to create millions of new jobs, reduce unemployment rates, and improve people’s welfare, especially in developing countries like Indonesia.
Furthermore, Economic Observer, Dendi Ramdani said that the Job Creation Law can increase competitiveness and push Indonesia towards high-income country status. With this law, Indonesia is committed to becoming a prosperous country and improving people’s welfare.
The Job Creation Law also facilitates the development of technology and innovation in various sectors. In the era of industry 4.0, the government realizes the importance of innovation to increase productivity and competitiveness. By providing convenience for startups and technology-based companies, this law creates opportunities for them to grow and contribute to the economy. This step is very important so that Indonesia is not left behind in global competition.
In terms of investment, the Job Creation Law offers various incentives, including tax reductions and ease of licensing, which are very attractive to investors. Simplifying regulations and reducing investment costs are expected to increase capital flows into Indonesia, thereby driving sustainable economic growth. Data from the OSS (Online Single Submission) shows a significant spike in the number of business licenses issued after the law was enacted, indicating confidence from business actors in Indonesia’s economic prospects.
Furthermore, as President Jokowi’s economic legacy, the Job Creation Law not only provides short-term impacts, but also promises sustainable economic growth. By creating a positive investment climate, Indonesia can attract more multinational companies that want to make this country their production and distribution base. This will contribute to increasing the added value and competitiveness of Indonesian products in the global market.
Furthermore, sustainable investment growth and job creation will have an impact on increasing people’s incomes, which in turn will drive domestic consumption. A strong and sustainable economy is the foundation for people’s welfare and social stability.
However, the implementation of the Job Creation Law faces challenges. Some parties have criticized that this policy can harm the environment and workers’ rights. Therefore, the government needs to ensure that the resulting regulations remain in line with the principles of sustainability and protection of workers’ rights. It is important to maintain a balance between economic growth, environmental protection, and human rights so that the objectives of the Job Creation Law can be achieved comprehensively.
To monitor and evaluate the impact of the Job Creation Law, the government must ensure transparency and accountability in the implementation of this policy. With clear data and information, the public and stakeholders can provide constructive input for future improvements. Public participation in the monitoring and evaluation of the resulting programs is essential to maintaining the integrity and initial objectives of this policy.
Overall, President Jokowi’s success in driving national economic progress through the Job Creation Law deserves appreciation. Although challenges still exist, this policy shows the government’s commitment to creating a better investment climate and opening up more opportunities for the community. With the support of all parties, it is hoped that the positive impact of the Job Creation Law can be felt comprehensively by all levels of Indonesian society.
)* The author is an observer of social and economic issues
