By: Sarah Faradiba )*
The government guarantees the security and certainty of investment to foreign investors, because the Act (UU Cipta Kerja) is still in effect. With the investment cluster in this Act, there is a strong legal umbrella to protect investors.
Investment is a hallmark of President Jokowi’s government because during his reign, many foreign investors entered Indonesia. They want to enter because there is an investment cluster in the Job Creation Act, as an official legal umbrella, which guarantees its security.
The government made the Job Creation Law to improve regulations in Indonesia (including investment), so that they are better and not stuck in a confusing bureaucracy. However, the Constitutional Court decided that this law should be revised. The order from the Constitutional Court made investors doubt, will the Job Creation Law still apply?
President Jokowi emphasized that the Job Creation Law is still valid for 2 years, and that is in accordance with the Constitutional Court’s rules, because the time to revise it is up to the next 2 years. All investors can still enter because there is a guarantee of security and investment certainty. They don’t have to be afraid of the Constitutional Court’s order because the government still guarantees investors.
President Jokowi’s statement makes foreign investors relieved because they are afraid that when the Job Creation Law is revised it will automatically be canceled. That’s not the rule though. They are still allowed to invest in Indonesia and get clear protection, and certainty to continue investment projects without dealing with the rigors of bureaucracy.
Bureaucratic reform has indeed been President Jokowi’s mission since the first period of his administration (in 2014). The goal is not to let the tortuous bureaucracy make it difficult for many people, from Indonesian citizens who want to take care of important documents, to foreigners who want to invest in Indonesia.
If there is a bureaucratic reform in the Job Creation Act, it is very good because later investors will be greatly facilitated when they are going to invest. First, business licensing is based on risk, and its management is also simplified. Second, a business license can be processed online and it only takes a few working days, which really saves time, money and effort.
With the guarantee of the Job Creation Act, which is still valid for the next two years, investors will certainly be safe. President Jokowi himself guarantees security and invites foreign investors to enter Indonesia. After two years and the law is revised, it is certain that the articles of the investment cluster will not be changed, because what is being revised is the employment cluster.
Evidence that investment in Indonesia is safe is the rate of increase in investment achievement which reaches 9% or more than 900 trillion rupiah per year. This evidence makes many foreign investors willing to enter Indonesia, because there are testimonies from investors who have previously carried out cooperation projects in this country.
If there is a guarantee from the Indonesian government and evidence that investment continues to grow, it will attract foreign investors. Moreover, our country has a lot of potential. Starting from the wealth of natural resources, mining products, to potential human resources.
Certainty to invest in Indonesia has been fully guaranteed by the government. Foreign investors should not hesitate to enter this country, because there is already a valid legal umbrella, namely the Job Creation Law. With direct guarantees from President Jokowi, they will invest in Indonesia with a happy heart.
)* The author is a contributor to Pertiwi Institute