The issue of recession is news that is hot enough to be discussed in the midst of global dynamics which raises its own concerns. On the other hand, the number of the workforce continues to increase so that the government requires regulations to anticipate economic turmoil.
This regulation is the Job Creation Law (UU Ciptaker) in which it is believed that this regulation is capable of opening investment opportunities that have an impact on opening up employment opportunities.
The Job Creation Law was passed by the DPR through a plenary session on March 21, 2023. Thus, this Perppu has legally become a binding law, it is hoped that this law will also be the answer to the challenges of the current global economic dynamics.
Legal observer from Gadjah Mada University, Prof. Nindyo Pramono said that the ratification of Perppu No. 2 of 2022 which was carried out by the DPR showed that the DPR and the Government both agreed on the substance contained in this Perppu.
The government itself seems to have accommodated the aspirations of the people regarding various issues regulated in the law, such as labor wages and halal certification. After being accommodated and corrected, the Work Creation Perppu entered into and was ratified by the DPR. This means that the DPR agrees with the substance of the Perppu to become a law as proposed by the government.
He continued, Prof. Nindyo explained that there are important benefits from the ratification of Perppu Number 2 of 2022 as a law, especially related to the ease of doing business in Indonesia. According to him, before there were regulations such as the Job Creation Law, investment facilities in Indonesia were still less competitive than ASEAN countries. This Job Creation Law has accommodated the need for economic growth and investment climate flows that are coming into Indonesia.
He believes that the use of the Omnibus Law method in the Job Creation Law is the right thing to do. By using the omnibus method , of course, the government does not need to revise every related law so that it can accelerate the process of drafting regulations.
Several sub-sectors related to the investment climate, such as the mining, fisheries and licensing and other sectors have been accommodated by the Job Creation Law. If each related law is corrected one by one, of course it will take a long time.
In addition, the government must also immediately carry out socialization after it is passed into law by the DPR. Even though the socialization seems to only be visiting giving lectures and announcements. However, when talking about educating the community to obey the law, then things like socialization must be carried out.
Prof. Nindyo also invited various parties to be able to study and read the legal product. This is very important so that the public can understand the positive impact that the Job Creation Law has had on the economic sector and the workforce.
Meanwhile, Jakarta Muhammadiyah University Constitutional Law Expert, Ibnu Sina Chandranegara said, the DPR’s approval of the Job Creation Perppu as a law is a constitutional action. In addition, the ratification by the DPR also provides important legal certainty for both the economic sector and workers.
He hopes that the technical regulations that will be drafted can further strengthen the legal certainty that has been provided by the Job Creation Law. Of course, this approval has clearly provided legal certainty and all implementing regulations needed to implement the Job Creation Law must be issued. One thing is certain, implementing regulations must also provide better protection of rights for workers.
It also needs to be understood that the Job Creation Law aims to harmonize existing policies at the central and regional levels, as well as overcome overlapping problems, moreover this Law is also able to cut down articles that are considered ineffective. It is hoped that the ratification of the Job Creation Law will have an impact on good economic development.
With the passing of the Job Creation Law, it is hoped that it will be able to encourage investment with a simple licensing system. The licensing process for this business activity has been changed from permit-based to risk-based. A system called risk-based licensing can be obtained online through the Online Single Submission Risk Based Approach (OSS-RBA).
With the ease of obtaining business licenses, it is of course hoped that the investment climate in Indonesia will improve. As well as attracting local and foreign investors to invest in Indonesia.
An increase in investment value will of course have an impact on opening up employment opportunities in various sectors, so that the number of unemployed can be reduced. The public certainly needs to understand that the Job Creation Law has gone through a revision period, so this policy is of course more perfect than the previous draft Job Creation Law.
The existence of the Job Creation Law is the right regulation to foster investment and create jobs. With these jobs, it is hoped that many Indonesian productive workers can be absorbed and welfare can increase.
)* The author is a Persada Institute Contributor