By: Dodik Prasetyo) *
The difficult and overlapping impression of Indonesian licensing will soon become a thing of the past. The reason is that the Government and the DPR are working on the Omnibus Law, which is believed to be able to expand employment opportunities and facilitate licensing for the sake of accelerating the growth of the national economy.
The government has concerns in the economic field with various strategies so that the national economy will strengthen even though the global economy is shaking. One of the strategies formulated by the Government is the realization of the Omnibus Law.
The Omnibus law scheme itself can be used for deregulation to avoid overlaps and bring about efficiency in policy implementation.
Maria Soetopo who is an expert in law and economics at Pelita Harapan University said that the State of Indonesia can use the omnibus law system. Although the laws for the formation of legislation do not accommodate these provisions, their application can use the concept of omnibus hybrid or quasi omnibus law.
The basis for the application of the omnibus law in Indonesia is due to Perpres 87/2014, Article 44, which is written, ‘the authority is given to each ministry / institution to carry out planning, drafting of laws and regulations.
On the last occasion President Joko Widodo in his inauguration speech stated that he wanted to simplify regulations and invite the House of Representatives to make two major laws or omnibus law, namely the Law on the Development of UMKM.
Indonesia has also issued policies such as the Omnibus law, namely RI MPR Decree Number I / MPR / 2003 concerning Review of Material and Legal Status of Provisional MPR Provisions and RI MPR Provisions in 1960 to 2002. Where its contents are regulating which MPR Tap is applicable and not applicable.
Agung Pambudi, as the Director of the Apindo Research Institute, said that the Omnibus Law Policy which wanted to unite more than 70 laws was appropriate and would help Indonesia to further increase the flow of investment. Dozens of beleids that will be united are related to business licensing in each sector.
Agung stated, the making of omnibus law is a fairly large PR. The effectiveness of the omnibus law in boosting investment flows depends on how quickly and comprehensively the unification of the dozens of laws.
On the other hand, Omnibus law can also clarify the state structure. Where, after the omnibus law is formed, all permits will go to the center and addressed directly to the president. After that, the president will forward the permit application to the technical ministry and local government.
Therefore, local governments will also continue to be involved, particularly to complete the investment realization stage. This is because the licensing process in each region is different.
With this mechanism, it is hoped that it will certainly facilitate the understanding of investors who will invest their capital in Indonesia. Because, at this time investment licensing in each sector is different. Some even go directly to the regional government.
He also added, that Omnibus Law will strengthen the role of 16 Economic Policy packages and the Online Single Submission (OSS) licensing system that currently exists.
Agung also believes that it would be quite wrong if there were local governments who thought that the omnibus law would complicate the flow of investment into every region in Indonesia.
On different occasions, Moekti Prasetiani as Chief Economist of Danareksa Research Institute said, the Omnibus law on employment was one of the prerequisites for improving manufacturing.
Moekti said, foreign investors were very concerned about issues related to employment to invest in Indonesia. Some of the issues of concern include issues relating to wages.
He considered that Indonesia needs to rely again on manufacturing which is known as the engine of economic growth in Indonesia. Moreover, commodity prices are weakening.
Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) in International Relations, Shinta Widjaja K. Puts hope that the investment climate in Indonesia will be able to boost the national industry in 2020. Thus, it can contribute significantly to economic growth.
According to him, Omnibus law is a breath of fresh air to improve the investment climate, so that it becomes an attraction for investors entering Indonesia.
The benefits in applying the Omnibus Law will also be felt by the workers, where later the workers do not need to worry if something unexpected happens such as termination of employment (PHK) which can be done at any time by the business owner.
The omnibus law strategy certainly proves that the government has never once thought of its country, especially in the economic sector, by inviting investors to participate in developing its business in Indonesia.
- The author is a social political observer
