Derivative Regulations on Job Creation Law Solve Industrial Problems

By: Alfisyah Kumalasari) *

The government is currently accelerating the discussion of derivative regulations on the Job Creation Law. The derivative regulation of the Job Creation Law is believed to be able to solve industrial problems, especially hyper-regulation that has hindered investment.

Ina Primiana as Senior Economist said, the Draft Government Regulation (RPP) implementation of No. 11/2020 concerning Job Creation must encourage re- industrialization if the existing articles regulate several problems faced by the national manufacturing industry.

According to him, there are several problems that must be answered by the RPP of the Job Creation Law in order to encourage the industry to increase post-pandemic.

              On the occasion of the Webinar, he said, the upcoming RPP is expected to be able to regulate several problems that often occur in the industry so far.

              Among them, reducing dependence on imported raw materials. Where imports are only carried out if the domestic industry is unable to produce either as raw materials or auxiliary materials.

              Then improve the import policy which has not been controlled, for example, it can only be imported by verified producers (API-P) and not through PLB and bonded warehouses.

              In addition, the RPP must also help the domestic industry by providing convenience for local export destinations (KLTE) and local facilities for local destinations (KLTL) so that fairness or KITE facilities for raw materials occur.

              There are several regulations that must be ensured in the RPP, namely encouraging TKDN to 35 percent, and ensuring that trade cooperation agreements or FTAs ​​do not harm domestic manufacturers.

              In addition to improving the industrial supporting system, namely ensuring supply and high energy costs. Low labor productivity and high cost of logistics and tax systems.

              On the same occasion, Rachmat Hidayat as General Chair of the Public Policy Division of the Food and Beverage Entrepreneurs Association (Gapmmi) hopes that a regulation must also facilitate investment and guarantee the availability of raw material supplies.

              His party also provides input for RPP, where the ease of procurement of raw materials which so far still leaves obstacles.

              Meanwhile, Jemmy Kartiwa as General Chair of the Indonesian Textile Association (API) requested that the RPP of the Job Creation Law later have strict supervision on the import of raw materials and industrial auxiliary materials.

              He said that there should be strict supervision on import licensing and sanctions. As well as proposing an increase in the application of TKDN according to the 35 percent import substitution program plan.

              Meanwhile, the President of the Republic of Indonesia, Joko Widodo, stated that several derivative regulations from the Job Creation Law had been completed. The government will immediately issue the derivative regulations .

              However, there are still a number of derivative regulations on the Job Creation Law that are still in the process of being drafted. Jokowi stated that all of the derivative regulations were made to improve the ease of doing business in Indonesia.

              However, the former governor of DKI did not elaborate on which derivative regulations had been completed. He also did not specify the regulations that are still in the process of being finalized.

              It’s just that, there are several draft presidential regulations and draft government regulations that the government discloses on the official website uu-ciptakerja.go.id.

              It can be seen that there are five presidential regulations drafted by the government, namely the draft questions in the investment business sector, procurement of government goods or services.

              Then, the agency for accelerating housing organizers, government cooperation with BUMN in basic geospatial, and financial rights and facilities for construction services development institutions (LPJK).

              Meanwhile, several draft government regulations are currently being drafted, including regulations regarding protection and environmental management, business permits in the regions, guarantees of halal products, land banks, management rights and land rights, as well as control of abandoned areas and lands.

              Previously, Ajib Hamdani as Chairman of the Finance and Banking Sector of the Indonesian Young Entrepreneurs Association (HIPMI) said that the Work Creation RPP shows the government’s commitment to providing facilities in the business climate in the regions.

              In article 5 of the RPP, it is stated that the ease of licensing in the regions is to improve the investment ecosystem and business activities.

              Furthermore, in Article 31 it is written that business actors or SMEs can register online to obtain a license to obtain a Business Identification Number (NIB).

              It is hoped that the Derivative Regulations on the Job Creation Law will have a big role in overcoming all problems in the industrial sector, of course this is a kind of fresh air for Indonesia so that the country’s economy can immediately revive.

) * The author is a citizen living in Depok