By: Savira Ayu)*
The Job Creation Law was ordered to be revised by the Supreme Court. This revision will not prevent investors from investing in Indonesia because this law is still in effect before the revised version is officially released.
There was shocking news when the Constitutional Court decided that the Job Creation Act had to be revised a maximum of 2 years into the future. Indeed, this law was controversial because its birth was greeted with question marks by the workers, who were not ready to make changes. However, the government advised them to directly file a lawsuit regarding the Job Creation Law to the Constitutional Court.
So now that this lawsuit is bearing fruit and the Job Creation Law must be revised, will there be any harm to the government? The answer is no because this Law remains legally binding, before the revised version comes out. All regulations will still be applied throughout Indonesia, including those in the investment cluster. The government will continue to boost investment as a means to improve the country’s economy.
Yuliot, Deputy for Climate Development and Investment at the Ministry of Investment/Investment Coordinating Board stated that Indonesia’s investment climate will be safe despite the revision of the Job Creation Law. The reason is because there are rules for the ease of doing business cluster derivatives.
In a sense, the revision of the Job Creation Law will not hinder the flow of funds from investors. The reason is because President Jokowi himself will ensure the security of investment in Indonesia. So they will continue to believe and continue investment projects.
The government is indeed taking care not to let investment projects stagnate because of the horrendous news about the revision of the Job Creation Law. Investors also continue to monitor even though their position is abroad. With the guarantee from the President of the Republic of Indonesia, they will continue to invest, because they believe in the seriousness of the Indonesian government in inviting cooperation projects.
According to the law in force in Indonesia, when there is a government obligation to revise the Job Creation Law, it does not mean that all the rules in it are simply annulled. The revision process is still long and we don’t know if the improvements are minor or major. While waiting, the investment project will continue.
When there is an investment project, the government requires a minimum investment of 100 billion rupiah. Imagine if there were only 10 investors entering Indonesia, how much profit could we make? Of course there will be plenty. Therefore, do not let the process of revising the Job Creation Law disturb investors, and their trust must be maintained.
The investment cluster has indeed become a priority in the Job Creation Law because its articles (and derivative regulations) really make the process of foreign investment easier. Capital is indeed a concern for the government because it is the key to recovery after the pandemic in the economy. If there is cooperation with investors, then we can rebuild Indonesia without having to be confused about who owes it.
The government is targeting an investment of 1200 trillion rupiah and this target is very large and is expected to be 100% realized. The reason is because Indonesia is included in the top 5 favorite countries for investment. We should not be pessimistic, but always remember President Jokowi’s words for work, work, and work. Projects and work will continue despite the revision of the Job Creation Law.
Investment is a way to get out of a recession or financial crisis during a pandemic. During 2021 the state’s finances are trying to improve and one way to do that is by foreign investment. The revision of the Job Creation Law which includes investment clusters will not prevent foreign investment from entering because there is a guarantee from President Jokowi.
)* The author is a contributor to the Circle of the Equator