In an effort to attract the interest of foreign investors and strengthen the structure of the Indonesian economy, the government has taken significant steps through the revision of Law Number 6 of 2023 concerning Job Creation (UU Job Creation).
Coordinating Minister for the Economy Airlangga Hartarto stated that this revision was carried out to accommodate the needs of prospective foreign investors who would enter Indonesia. Support from 38 member countries of the Organization for Economic Cooperation and Development (OECD) adds confidence that Indonesia is ready to meet international standards and take advantage of greater investment opportunities.
The Job Creation Law aims to simplify bureaucratic processes, eliminate complicated obstacles, and increase the ease of doing business in Indonesia. This step is not just an administrative overhaul, but a comprehensive reform to create a more conducive business environment for local and foreign entrepreneurs.
By consolidating and harmonizing existing regulations, the Job Creation Law seeks to reduce administrative burdens and provide clarity and certainty for businesses operating in Indonesia.
One of the core elements of the Job Creation Law is the introduction of a single application system. This system allows businesses to obtain multiple permits through a unified application process. This transformation not only saves time and resources, but also increases transparency and responsibility in the licensing process. This approach is in line with steps to digitize and modernize administrative procedures, which are expected to speed up the process of business entry into the market.
Chair of the Substance Synergy Working Group for Socialization of the Job Creation Law Task Force, Tina Talisa, highlighted that the success of increasing investment trends in Indonesia after the issuance of the Job Creation Law cannot be separated from the active role of local governments and business actors.
In order to speed up the licensing process, the government has held a Focus Group Discussion (FGD) to absorb aspirations regarding the implementation of the Job Creation Law. One of the progressive steps taken is to speed up the building permit process through an integrated one-stop system.
Arif Budimanta, Secretary of the Task Force for the Acceleration of Socialization of the Job Creation Law, emphasized the importance of digitalization to speed up the licensing process. This digitalization not only speeds up the process, but also ensures openness and accountability.
With a digital-based system, the government hopes to create more jobs and encourage national economic growth. This step is also expected to increase investor confidence in the security and quality of licensing in Indonesia.
However, ease of licensing must still pay attention to environmental aspects, work safety and the safety of building occupants. Strict oversight remains necessary to ensure that easy licensing does not compromise quality and safety.
Diana Kusumastuti, Director General of Human Settlements of the Ministry of PUPR, explained that with the SIMBG application, the licensing process can be monitored directly with clear time limits, bringing a positive impact for applicants and the government in terms of supervision.
Collaboration between the central and regional governments is very important in supporting the implementation of the Job Creation Law. This synergy ensures that problems that arise can be immediately identified and resolved, so that the licensing process runs smoothly and in accordance with applicable regulations.
Appreciation also came from various parties, such as the Karanganyar Public Works and Public Housing Department, who stated that the SIMBG application system was very helpful in managing the PBG application database efficiently and effectively.
Active participation from various parties, including local governments, business associations, academics and related institutions, is the key to success in encouraging the implementation of the Job Creation Law. This collaboration creates a conducive environment for investment and sustainable economic growth.
The Job Creation Law provides new hope for Indonesia to run the economy better through ease of licensing which not only opens up opportunities for new investment, but also strengthens the business climate in Indonesia as a whole.
The Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, confirmed that the Job Creation Law provides guarantees for foreign investors entering Indonesia. At the New Balance Materials Summit, Luhut explained that the government is committed to creating policies that benefit all parties, including employees and business actors.
The legal and investment certainty offered by Indonesia under the Job Creation Law has received a positive response from foreign investors, including New Balance, who see Indonesia as one of the expansion targets due to political and geographical stability as well as the government’s efforts to simplify business permits.
New Balance plans to operate a new factory in Cirebon with an investment of around IDR 1 trillion next August. The development of the manufacturing industry, especially footwear, was driven by the Job Creation Law, which made investors more confident in investing in Indonesia.
Chairman of Apindo West Java, Ning Wahyu Astutik, stated that this policy opens up great opportunities for local workers to work in their own region and for local entrepreneurs to develop further.
The Job Creation Law is a progressive step taken by the Indonesian government to attract foreign investors and strengthen the national economy. By simplifying licensing, digitizing administrative procedures, and collaborating between various parties, this law provides new hope for faster and more sustainable economic growth.
By continuing to support and implement these reforms, Indonesia has great potential to become a major investment destination in the Southeast Asia region. Let’s support this step together for a brighter future for the Indonesian economy.