By: Gita Oktaviani)*
President Jokowi has led Indonesia in a more advanced direction during his decade of leadership, with various strategic programs to accelerate economic growth. One of these programs is the Job Creation Law (UU Ciptaker).
President Jokowi’s government continues to optimize economic development. One of its significant achievements is the ratification of the Job Creation Law which is designed to address various challenges in the economic and employment sectors. This policy is expected to create a better investment climate and provide convenience for the business world amidst increasingly tight global competition.
Since taking office as President of the Republic of Indonesia in 2014, the national leader born in 1961 has succeeded in accelerating economic reform with a focus on simplifying regulations.
One of the breakthroughs is through a set of policies known as the Omnibus Law , which aims to simplify the licensing process and open up more jobs. This policy also aims to make Indonesia one of the countries with high investment appeal in the Southeast Asia region.
Expert Staff of the Coordinating Minister for Economic Affairs of the Republic of Indonesia, Raden Pardede, assessed that the Job Creation Law is the key to increasing Indonesia’s competitiveness amidst global competition. In the context of a world economy that tends to weaken compared to the 2000s or 2010s, every country must compete hard to attract investors.
According to Raden, the Job Creation Law plays an important role in making Indonesia more attractive to investors, both domestic and international. The policy creates high competitiveness because of the legal certainty provided and the faster licensing process.
Raden also revealed that the Omnibus Law not only boosts national economic growth, but also provides greater space for Indonesia to lead in the global market.
With the implementation of the Job Creation Law, foreign investment is increasingly open, and this has direct implications for the creation of new jobs. Raden hopes that the policy will be implemented sustainably by the next government to accelerate the targeted economic growth rate of more than 5.2 percent.
Indeed, President Jokowi has a vision that targets Indonesia as a country with high global competitiveness. This is reflected in the Institute for Management Development (IMD) World Competitiveness Ranking 2024 Report, where Indonesia rose eight levels to position 27 out of 67 countries. This increase occurred thanks to various reforms carried out under the umbrella of the Job Creation Law, including in the labor sector which is now considered more efficient and productive.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the increase in competitiveness was largely due to the ease of recruiting workers and resolving labor disputes.
The Job Creation Law provides solutions to various problems often faced by the business world, especially in terms of legal certainty and efficiency of the licensing process. In addition, Indonesia’s demographic bonus is also further strengthened by the implementation of this policy, making Indonesia a potential market in the eyes of global investors.
Airlangga added that amidst the unstable global geopolitical conditions, Indonesia’s competitiveness ranking has increased thanks to support from the stable government and domestic economic sectors.
The Job Creation Law has strengthened the foundation of government institutions in creating regulations that are more adaptive to the needs of the business world. The Indonesian market is also recognized as one of the best in the region, providing great potential for future economic growth.
President Jokowi also emphasized the importance of the Job Creation Law in efforts to increase national competitiveness. According to him, the policy not only has an impact on the government and business sectors, but also makes a significant contribution to Indonesia’s economic stability.
Airlangga stated that the Job Creation Law has brought Indonesia to a more competitive position internationally, especially in terms of labor productivity and economic stability. The increase was also driven by strong public support for government policies in creating a conducive business climate.
With the success achieved in increasing competitiveness and creating jobs, the implementation of the Job Creation Law is expected to continue in the future. This policy has proven its effectiveness in attracting investment and strengthening Indonesia’s position in the global market.
The incoming government is expected to continue these policies to ensure sustainable economic growth and realize Indonesia’s vision as one of the main economic powers in Asia.
During his ten years in power, President Jokowi has provided a strong foundation for Indonesia’s economic growth. Through the Job Creation Law, the Head of State has succeeded in creating a more competitive and attractive business climate for investors, as well as opening up jobs for millions of Indonesians.
The achievement reflects President Jokowi’s strong commitment to accelerating national economic growth, while also bringing Indonesia to a better position in the international arena. This certainly needs to receive wide attention from the entire community as proof of President Jokowi’s tireless commitment to advancing Indonesia.
)* Contributor to the Reading Window Institute