By: Made Raditya ) *
The Organization for Economic Co- Operation and Development (OECD) asks Indonesia to maximize the implementation of the Job Creation Law because it helps signal to domestic and foreign investors that Indonesia is a promising location for doing business.
Secretary General (Sekjen) of the OECD Angel Gurria on the occasion of the press conference (OECD) said, Take advantage of the Omnibus Law on Job Creation to strengthen the business environment.
Angel stated that the C ipta Work Law has good enthusiasm and efforts to reduce barriers to foreign investment, streamline the business licensing system and promote an inclusive, sustainable and responsible investment environment.
Angel admitted that he is very optimistic about the Job Creation Law because the OECD analysis shows that Indonesia has done well in minimizing administrative barriers in the business sector.
This is indicated by the existence of five companies with unicorn status which are far more than Japan, namely four companies and three Australian companies.
Even so, Angel said that Indonesia also still had to continue to invest in creating competencies and skills as well as reforming the labor market to create better jobs.
According to him, Indonesia is experiencing many skills shortages both in terms of current and future needs despite the considerable increase in educational attainment.
The OECD survey recommends that Indonesia can develop vocational education and lifelong training in order to improve the skills of the workforce.
Previously, the Governor of Bank Indonesia (BI) Perry Warjiyo said that Indonesia would be hunted by foreign investors to invest their capital in 2021. This was after investors believed that the prospect of Indonesia’s economy would improve in the future.
During the webinar , Perry said that Indonesia is the main destination for global portfolio investment .
According to Perry, the speech of US President Joe Biden , he explained, made investors buy back Indonesian Government Securities (SBN).
Perry also estimates that foreign capital flows will be pouring into Indonesia this year. The amount, he said, could penetrate nearly 20 billion US dollars .
Perry added that the rapid flow of foreign funds into Indonesia would have an impact on the movement of the rupiah exchange rate to be even more stable.
On different occasions, the Coordinating Minister for Maritime Affairs and Investments I Luhut Binsar Pandjaitan assured foreign investors that the Indonesian economy could grow in 2021.
He admitted, indeed, the global economy was in a downturn. However, with the vaccine, there is new hope that the economy can grow again.
Luh ut also explained that the government had changed the regulation through law No.2 of 2020 concerning Job Creation.
He explained that there are many simplified rules related to investment in these regulations.
That way, investors will no longer have problems processing permits and even take a long time to process permits when they want to invest.
The Job Creation Law will also increase Indonesia’s competitiveness and encourage investment. As a result, this will create a lot of jobs thus accelerating the recovery of the national economy .
On the previous occasion, Vice President of the Republic of Indonesia Ma’ruf Amin said that the Ciptaker Law has the aim of creating a conducive climate for investment and the business world.
This law is necessary because so far the creation of a conducive climate for investment and the business world is constrained by convoluted regulations, as well as overlapping existing regulations, so it takes a long time.
Ma’ruf said, this caused Indonesia to lose competitiveness with other countries such as Thailand, Malaysia, Vietnam, Cambodia and others.
Particularly, in terms of ease of investment, which results in delays in job creation in the country.
Ma’ruf Amin also ensured that the Ciptaker Law was the government’s response to community demands. Especially the demand for job creation, improvement of the bureaucracy and simplification of regulations as well as creating a conducive climate for investment and the business world.
Foreign investment is still needed by Indonesia, because thanks to investment it will finance the national development acceleration program. The inflow of foreign capital can move the wheels of the economy and increase state income.
Therefore, foreign investors are still needed for Indonesia, so we need regulations that can make investors feel comfortable investing in Indonesia, one of which is the Job Creation Law.
) * The author is a Cikini Press Circle Contributor and Student
