Omnibus Law Encourages Indonesia as a Developed Country

By: Alfisyah Kumalasari) *

Certainty for the realization of Omnibus Law as the driving force of the Indonesian economy has been awaited. Not only improving the investment climate, but also as a powerful weapon to push Indonesia forward.

Pamungkas Jokowi’s direction with the name Omnibus Law is now just a matter of time. This is because the draft bill, called the Law of the Broom, is being discussed in the Indonesian Parliament. Not only questioning one case, the omnibus law is also considered to be able to resolve all issues related to regulation and bureaucracy in Indonesia.

In the financial sector, for example, cuts in echelonization are considered effective in optimizing the performance of the state apparatus. Including implementing functional positions that will respect HR and competence. In the taxation sector, Omnibus law will break down all the complexities of regulations related to investment licensing as well as others. In this sector there are discussions of tax holidays, tax allowances and so forth. There are also in the education, maritime, and pharmaceutical sectors. Which has its own urgency.

The most phenomenal is, omnibus law copyright employment. The bill said it would benefit the workers. Creating employment as much as possible, even in the range of 2 million workers each year. There are also discussions related to minimum wages, health care guarantees, competency enhancement as well as human resources, to easy access such as the existence of a pre-employment card.

Not only used as a solution to cut the complexity of the law in the archipelago. This omnibus law is expected to follow in the footsteps of developed countries in America, Europe and a number of other countries as superpowers and qualified in various sectors. Therefore, it is necessary to accelerate the realization of the Law of the Sweep universe immediately. After all, success has been in plain sight. All that’s left is to apply it.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto was optimistic that Indonesia would become a developed country or have a high income in 2045. He was even sure that this country would escape the middle income trap which was popularly known as the middle income trap in 2036.

Airlangga explained, the Omnibus Law on Work Creation Law will boost the rate of income per capita of Indonesian citizens to Rp 7 million per month. For now, it has only touched Rp. 4.6 million per month.

With the issuance of the Employment Copyright Law, it will also renovate simplification, harmonization of regulations and licensing. Airlangga also hopes that improved regulations can increase quality investment and will be able to create jobs while empowering small and medium businesses (UKM).

For information, the Draft Omnibus Law on Employment Copyright is suspected to originate from 79 laws, which contain 15 chapters, and 174 articles, and target 11 clusters. Which cover; Simplification of licensing, investment requirements, employment sector, Guaranteed ease of empowerment and protection of Micro, Small and Medium Enterprises (MSMEs), ease of doing business, support for research and innovation, government administration, imposition of sanctions, land acquisition, investment and government projects, and not forgetting regarding the economic area.

Airlangga claims that the Employment Creation Bill itself is made very simple. So hopefully no one considers this difficult, large, and very wide. He added, regarding national development must continue to be done. The reason is that the national development goals are growth, equity, and competitiveness.

Airlangga said again if the entire country was competing to attract investment to create jobs for seven million people who had not gotten employment opportunities. The seven million is a number that must be pursued. He considered that with ordinary growth surely this would be difficult to achieve. Because every year (economic) growth is only five percent.

He stated, with economic growth in the range of five percent, only around two million to 2.5 million people could be employed. Even though Indonesia needs to employ around seven million people.

Therefore, there is no need for this and that the omnibus law scheme must immediately be rolled out. The longer the time used will certainly be further from the realization. Considering there will be mega benefits that this omnibus law will provide. Not just one sector, but many sectors are interrelated and sustainable. For the sake of the realization of a more advanced Indonesia.

) * The author is a social political observer

EconomyindonesiaOmnibusOmnibus Law
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