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Derivative Regulations on the Job Creation Law in favor of People’s Industry

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By: Indra Kurniawan) *

Currently, the Government continues to optimize the discussion of drafting derivative regulations on the Job Creation Law. This derivative rule is believed to be able to solve the problem of hyper-regulation and still side with the progress of people’s industry.

The Central Government is finalizing the Draft Government Regulation (RPP) for Trade and Industry, which is a derivative of the Omnibus Law on Employment Creation.

Business actors also hope that this RPP can accommodate industrial interests, such as guaranteeing the certainty of raw materials to protecting domestic industries.

              Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmadja said that the RPP for industry and trade is very important for the textile and textile product (TPT) industry. Therefore, his party also proposed several inputs. One of them is the need to improve the import mechanism.

              Jemmy assessed that there needs to be a strict policy in the form of tire obligations including import permits for importers who import through Bonded Logistics Centers (PLB), Bonded Warehouses (GB) and Free Trade Zone (FTZ).

              As for the RPP for industry, he said that the government needs to reduce dependence on imported raw materials. According to him, imports can only be carried out if the domestic industry cannot produce them either as raw materials or auxiliary materials.

              His side sees that there is no chapter that discusses domestic market guarantees for domestic products, so this RPP cannot encourage the use of domestic raw materials to improve import policies.

              He sees that all this time the ease of imports which should help domestic industries, especially IKM, has actually backfired and threatened domestic industries . From within the country, the problem of high logistics costs is a classic problem that is still a homework.

              The high cost of logistics is due to the fact that the logistics infrastructure has not been integrated and creates high economic costs.

              Sementa ra it Rachmat Hidayat as member of the Association of Food and Beverage (GAPMMI), add the food and beverage industry also affected by the pandemic. Even though it can still record positive growth, this industry must adapt to changes in consumer behavior who are more aware of health or hygiene in the food and beverage products they will consume.

              In addition, several challenges are also faced by the food and beverage industry, such as the absence of a guarantee for a more competitive energy supply, availability of raw materials, and guaranteed supply of raw materials.

              On different occasions, the Director of the Indonesian Employers’ Association (APINDO) Agung Pambudhi hopes that the government will solve investment problems and make efforts through the derivative regulations of the Job Creation Law that are currently being drafted.

              Therefore, the government must also be firm as the policy authority in deciding licensing and legal regulations.

              Employers certainly really hope that licensing services will provide more certainty than before the existence of the Job Creation Law.

              He strongly believes that the most primitive management needs to be carried out, namely reward and punishment for ASNs who are tasked with serving licensing. It is appropriate to change the existing work behavior.

              He also hopes that the ease of investment must be reflected in the entire RPP made by the government.

              For example, regarding the ease of obtaining a system-based permit, starting from meeting the document requirements to the business actor or applicant obtaining the permit. Agung asked that the process be not only easy, but also certain.

              The step in granting risk-based licensing is indeed the spirit of the Job Creation Law regulations. This policy must be maximized for the convenience of the community .

              Agung said, the most important thing in this process is related to how a system can ensure participation and also consultation in which the public can provide notes on regulations that are derivative regulations of the Work Cip ta Law.

              The application of law Number 11 of 2020 concerning Job Creation should be appreciated as one of the solutions to overcome overlapping regulations on business activities.

              The omnibus method of drafting regulations is expected to reform regulations so as to increase investment in Indonesia, of course this increase in investment will be in line with the increase in employment.

              It is hoped that this derivative regulation is also in line with the spirit of the regulations above so that there are no overlapping regulations and other investment barriers.

              In the future, what is needed by the community, both business actors and workers, is a conducive industrial climate, so there is a need for regulations that can accelerate efforts to improve the country’s economy.

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