By: Agus Soepomo
President Joko Widodo’s administration continues to demonstrate its success in encouraging investment and carrying out significant bureaucratic reforms through the Job Creation Law.
Since the launch of the policy known as the Omnibus Law, Indonesia has recorded several important achievements, both in terms of investment competitiveness and bureaucratic efficiency. These improvements have not only strengthened Indonesia’s position on the global stage, but have also had a real impact on the progress of the national economy.
Special Staff of the Ministry of Investment/Investment Coordinating Board (BKPM), Tina Talisa, explained that the increase in Indonesia’s competitiveness by seven ranks is concrete evidence of the right steps taken by the government under the leadership of the seventh President of the Republic of Indonesia.
With the best competitiveness ranking in history, Indonesia is able to show that the investment climate in the country is increasingly competitive, thanks to the simplification of regulations and improvements in the business climate. Strategic policies such as Law No. 6 of 2023 are a strong foundation that facilitates the entry of foreign investment and encourages domestic economic growth.
Furthermore, bureaucratic reforms born from the Omnibus Law have brought fundamental changes to the licensing system and government governance. In this context, the Job Creation Law is designed to overcome bureaucratic complexity which has been a major obstacle to economic growth.
A more agile bureaucratic structure is needed to adapt to the dynamics of the global economy. According to Arif Budimanta, Presidential Special Staff for Economic Affairs, this is part of the ongoing transformation that Indonesia must continue to undertake. This approach ensures that Indonesia remains relevant and competitive amidst increasingly fierce global competition.
On the other hand, the spatial planning and agrarian sector has also experienced significant improvements thanks to the reforms implemented through the Job Creation Law policy. The Director of Spatial Utilization Synchronization of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Rahma Julianti, emphasized that the simplification of the land rights issuance process is now much more efficient.
KKPR (Conformity of Spatial Utilization Activities) approval, which previously could take months, can now be completed in 20 working days. This process not only accelerates the pace of infrastructure development and investment, but also creates legal certainty for investors and business actors.
President Jokowi has emphasized that bureaucratic reform is the key to sustainable economic growth. With a more efficient and transparent bureaucratic structure, it is expected that the flow of investment into Indonesia will increase.
Law No. 6 of 2023, which is designed to simplify licensing procedures and accelerate the investment process, has become a strong foundation in achieving the vision of inclusive and sustainable development.
In addition, the reform efforts carried out by the President of the Republic of Indonesia who has been in office since 2014 are also in line with Indonesia’s long-term vision to become a developed country. Various breakthroughs achieved through the Job Creation Law, such as accelerating licensing and cutting bureaucracy, have created a more friendly and competitive business ecosystem. This is the main driving factor that attracts investors from all over the world to invest in Indonesia.
Not only that, the positive impact of this policy is also felt in various strategic sectors. For example, the manufacturing and infrastructure industries are now experiencing accelerated development thanks to the simplification of regulations and permits.
With ongoing reforms, President Jokowi has ensured that the Indonesian economy remains resilient in facing global challenges, while also being able to take advantage of opportunities to drive inclusive growth.
This transformation reflects President Jokowi’s commitment to creating as many jobs as possible amidst increasingly tight competition. The Omnibus Law policy, which integrates various regulations related to investment, employment, and licensing, is designed to provide comprehensive solutions to problems that have so far hampered Indonesia’s competitiveness. Through the Job Creation Law, the government has shown that reform does not stop at the policy level, but is also implemented in a real and sustainable manner.
Overall, President Jokowi’s success in encouraging investment and carrying out bureaucratic reform through the Job Creation Law has had a major positive impact on the Indonesian economy.
With the support of various elements of government, this reform is expected to continue and produce a broader transformation for the welfare of society. Increasing competitiveness, accelerating licensing, and simplifying bureaucracy are real steps that have been taken by the Head of State, ensuring that Indonesia remains a major destination for global investment and is ready to compete on the international stage.
*) Economic Policy Consultant – People’s Economic Forum