By: Andi Prasetyo (Chair of the Banjarmasin Regional Publication Literacy Movement)
A vision of Indonesia in 2045 to be the Big 5 World Economic Power, Indonesia will become a high-income country in 2040. A vision that must be implemented in an extraordinary mission. So there needs to be policy reforms to accelerate the pace of economic growth.
Through the Employment Copyright Bill where there is good regulation, it will create many jobs, people who enjoy more work certainly with standardized income and increasing community income, not vice versa.
This Work Creation Bill arises because there is a mutually reinforcing demand and supply, where if the demand for consumption increases, it will increase broad investment growth, the investment impact will certainly increase people’s incomes, products and services more likely to be sold because of high purchasing power, economic growth society is increasingly guaranteed.
However, to realize prosperity in the above aspects, there needs to be a high commitment, in the context of creating new jobs, so that the productive age population is not unemployed, those whose schools have graduated from high school / vocational / tertiary level and universities can work, and bring up new businesses the existing industrial environment.
For business people, they also hope that there is a conducive economic climate in the industrial environment, there is a mechanism for simplifying procedures, not a lot of “desks” taken, millions of Indonesians can be productive through work that is obtained, and those who work also get wages or work rights and social security in accordance with the existing rules as a binding umbrella for them.
When there is an increase in income or income for the population, it certainly can spur an increase in purchasing power in the community, it is expected that the average growth in income per capita in 2020-2024 will reach 7.5% -8.4%, so that it will increase the consumption of people’s income.
However, if we look at the facts and the reality of the current conditions, that the existing external conditions still leave several problems, including uncertainty and a slowdown in the global economy, especially with the emergence of the Corona pandemic which has widened to several countries on various continents in the world, making geopolitical dynamics that occur are getting worse. Not to mention the changes in technology and industry 4.0 and the digital economy.
In terms of internal conditions in Indonesia, our current economic growth has averaged around 5 percent in the last 5 years, not to mention unemployment reaching 7.05 million people, the new workforce has increased by 2 s.d. 2.5 million people per year and there are 70.49 million informal workers. Everyone adds a burden to the State to complete a new breakthrough.
On the other side there are economic and business problems where there are overlapping regulations, low investment effectiveness, unemployed people are increasingly scattered in all districts / cities in Indonesia, and large MSMEs do not guarantee as “foster fathers” for small-scale MSMEs because of productivity Large MSMEs are getting lower.
So the government has taken the right stance by issuing a Work Creation Bill by trying to make a formula which is firstly the simplication and harmonization of regulations and permits, secondly quality investment, thirdly creating quality jobs and sustainable worker welfare, including empowering MSMEs.
The target in 2045 for Indonesia to be sovereign, advanced, fair and prosperous can be achieved, with a target of magnitude being in the top 5 world economies, free from middle-income countries or known as middle income traps, poverty rates approaching 0 percent, GDP reaching USD 7 trillion, ranked 4th in the World GDP, and a more qualified workforce.
The Ministry of Law and Human Rights also stated as of January 23, 2020 that Indonesia currently has 8,451 central regulations and 15,965 regional regulations that describe the complexity and obesity of regulations in Indonesia. Whereas the 2020 Bappenas Document also states that the most inhibiting economic growth in Indonesia is regulation and institutions, because regulations do not support business creation and development, and low quality institutions are evidenced by high corruption and inefficient bureaucracy, weak coordination between policies.
On the one hand, there are fiscal barriers, where the low tax revenue, the existing infrastructure is inadequate, including connectivity, not to mention human resources also become a clear obstacle.
Jitu Jitu Omnibus Law Cipta Karya
The presence of the Omnibus Law at the Work Creation Bill for the government in order to increase investment realization and reduce the obvious gaps of the problems mentioned above, and how to achieve the target of 2045 to become a sovereign, developed, just and prosperous country.
Various countries in the world, have used Omnibus Law a lot and are considered successful, so the Indonesian Government wants to apply the Omnibus Law concept to achieve the target of 2045. The Omnibus Law is expected to improve regulations in our country in order to create jobs and improve climate and investment competitiveness.
The benefits for the government to apply the first Omnibus Law are to overcome hyper-regulation, so that it needs to be trimmed, simplified, harmonized, by way of regulatory regulation because there are many overlapping regulations between the Testing of Laws (PUU), inefficient processes of PUU revocation / revocation, and eliminating ego sectoral.
In the Academic text in the Draft Cipta Karya Bill that all Ministries and Institutions have agreed on the Draft Cipta Karya Bill in drafting a bill that has broad impact and can be used as a reinforcement of the system to realize the target of 2045. Some time ago, the government was finished and the draft had been submitted to the Legislator to immediately prioritize becoming a product of the Employment Copyright Law
Let us pray for and support the people’s representatives, so that what is compiled by the government through the Work Creation Bill can be the best solution for the nation so that the people are prosperous and the country is progressing. (*)