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Convience of Investment in Indonesia Magnets for Foreign Investment

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By : Andhika Kurniawan

The government has initiated the birth of the Job Creation Act to facilitate licensing. These various facilities are expected to become a magnet for foreign investment, so that job opportunities will be more wide open.

Indonesia is struggling to improve its economic situation after being hit by a pandemic for more than 2 years. One way is by foreign investment. Investment will be a solution because there is mutually beneficial cooperation, and it will increase the country’s foreign exchange. After all, investment has been around since the New Order era, so it’s no stranger.

To attract foreign investors, the government facilitates investment regulations. First, there is a direct guarantee from President Jokowi for foreign investors who will enter Indonesia. He even asked them to come directly, if indeed there are individuals who are caught complicate the bureaucracy when processing investment business permits in Indonesia.

Second, the government has inaugurated the Job Creation Law since the end of 2020. In the law there is an investment cluster that will facilitate investment, especially foreign investment in Indonesia. The law was deliberately made to increase the realization of investment in Indonesia, because one of the indicators of developed countries is the large number of investments there.

In the Job Creation Act, there is an article that stipulates that the processing of business licenses (including investment businesses) is through online single submission (OSS). The online method will make it easier for foreign investors, because they can apply for permits via gadgets and do it without having to fly to Indonesia. This method saves time and money because you only need to open your cellphone or laptop, without having to spend money on plane tickets to Jakarta.

The ease of obtaining permits via OSS saves time because it only takes 5 working days, the business license will be issued (if it meets the requirements). The granting of permits, which only took a few days, was not complicated and made foreign businessmen happy, because the permits were easy to issue. Their principle is time is money so that if you save time, it will save costs too.

It’s different if you use the old method where foreign entrepreneurs have to apply for permits to the relevant agencies. It could be that there are unscrupulous employees who take advantage of opportunities in adversity. He deliberately asked for facilitation money so that his permit would be issued quickly, and this method was hated by foreign investors because it did not comply with procedures. However, if the management is via online then the management is a computerized system so that it cannot be extorted.

With the Job Creation Act, it is proven to eradicate KKN (corruption, collusion, nepotism) in Indonesia. This is in line with President Jokowi’s promise to eradicate bureaucracy and corruption in this country.

The Job Creation Law states that foreign investment must be high-tech, large, digital-based, and labor-intensive. With the ease of foreign investment and the requirements of a labor-intensive industry, investors will comply. They want to build the industry because Indonesian human resources qualify as employees.

Indonesian human resources are considered qualified because on average they are proficient in foreign languages ​​(at least English). In addition, Indonesian employees are also diligent in working and able to adapt to the work culture brought by foreign investors. With a large investment, more employees are needed, and it will automatically reduce unemployment in Indonesia.

Digital-based industries are also very good because now is the era of information technology. If there are investors in the IT (information and technology) field, they can brighten up technology in Indonesia. This country will be more advanced because the industry is internet-based and has extensive networking.

In addition, in the Job Creation Act there are also requirements for technology transfer. In a sense, investors do not only do business in Indonesia. But they also teach the latest technology to their employees, through technicians brought from their country. In this way, employees from Indonesia will be more advanced and understand the latest technology. They not only work to earn a living, but also gain knowledge.

Foreign businessmen from China, South Korea, and Japan, have begun to realize the realization of investment in Indonesia. They are interested in investing because it is guaranteed by President Jokowi. In addition, with the legal umbrella of the Job Creation Act, they feel safe in doing business in Indonesia and the business will be mutually beneficial.

The ease of investment in Indonesia, which is exposed in the Job Creation Act, especially investment clusters, is a magnet for foreign investors. They do not hesitate to enter Indonesia and do business in this country because there is a strong legal protection. If there is a lot of investment, the better because the business world in this country will be more dynamic.

 The author is a contributor to the Pertiwi Institute

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