By: Gema Iva Kirana )*
The Job Creation Law brought positive results in Indonesia, because it increased the workforce, thanks to the influx of foreign investment. In addition, simplifying the bureaucracy makes it easier for entrepreneurs to take care of licensing. The business can grow rapidly and add employees, as well as reduce unemployment. Automatic poverty is reduced because almost everyone has a job.
The Indonesian economy, which had fallen due to the attack of the corona storm, is trying to be revived by the government, one of which is by enacting the Job Creation Law. This law will change people’s lives to be prosperous, because there will be changes in the fields of investment, employment, licensing, and others.
The Job Creation Law will absorb labor while reducing poverty. Economic observer Rosdiana Sijuang states that the existence of the Job Creation Law is for the creation of a good and more friendly ecosystem for foreign investors.
Rosdiana continued, basically, the ratification of the Job Creation Law was an effort to create wider job opportunities, considering that job creation is very important for the Indonesian economy. Especially given the relatively high population.
The government is trying hard to get people back to living in peace and getting a livelihood by formalizing the Job Creation Law. After this law is enacted in the field, new job opportunities will open. Unemployed people will work again.
In the Job Creation Law there is a licensing cluster that allows entrepreneurs to open a business easily. This is because permits are divided based on risk: high, medium, and low. Low-risk businesses, for example, grocery stalls, home-baked pastry businesses, daily catering, and others.
Entrepreneurs who are still at the MSME level are low-risk businesses. So he doesn’t have to take care of HO permits which reach millions of rupiah. However, you only need a business identification number, and it can be taken care of online, so that legality can be obtained easily. If you already have a business license, then the business will run smoothly because it is considered legal by the government.
If the business runs smoothly, it will be enlarged, and there will be a positive domino effect, namely reducing unemployment. The reason is because he needs more employees, for example for the courier, administration, and others. The Job Creation Law has proven that it has increased employment opportunities and is also beneficial for employees, not only for entrepreneurs.
Meanwhile, an academic from Brawijaya University Malang, Moch. Fauzie Said, stated that the Job Creation Law would make it easier for business actors to open businesses, and would have an impact on opening up many jobs. In the sense that unemployment will be absorbed, because many new businesses need employees.
The Job Creation Law makes it easier for investors to enter Indonesia, so that MSME entrepreneurs can ask them to become investors. The MSME business will develop well, so as to be able to recruit employees and reduce unemployment. Apart from foreign investors, this law also benefits local investors because the rules are simplified.
If unemployment is reduced then the people will be prosperous, because they have a livelihood. Purchasing power will increase because people are able to buy groceries and various other needs, without having to go into debt. They already have a monthly salary, and the poverty rate will decrease because almost everyone has a job.
Then, MSME businessmen also benefit from the Job Creation Law, because there is a rule that when a state institution needs an item, 40% of the product must be produced by MSMEs. That way, MSMEs will get a lot of orders, because there is already a clear market , so they are no longer confused about where to market their goods.
The Job Creation Law also benefits the community because it makes it easier for them to open businesses and obtain permits. Regulations regarding business licensing are changed to be risk-based: high, low, and medium. Low-risk businesses like grocery stores can also get a business license, so they are relieved to have legality.
Getting a business license is also very easy because it can be done via the official website, and the process only takes a maximum of 7 days. After entering the data and the results of the file scan , it will be evaluated and decided whether permission can be issued or not. If everything is complete and valid, the legality will be obtained easily.
If a small business has an official permit from the government (not just a business certificate from the RT), then if you are going to take credit from a bank, it will be made easier. Because they have completed the conditions. That way, the store can grow thanks to additional capital injections. From a small shop level to a mini market that provides more people’s needs.
The various facilities provided by the Job Creation Law will reduce poverty in Indonesia. Ordinary people to MSME entrepreneurs benefit from this law and have a decent income, so they will not be affected by the global recession.
The Job Creation Law absorbs labor and reduces poverty in Indonesia. With this law, investment will increase, thereby increasing the number of businesses resulting from investment, and automatically reducing unemployment in this country.
)* The author is a contributor to Persada Institute