Government Guarantees Investment Ecosystem With Various Fiscal Facilities
By: Rika Prasatya)*
The government is responding to the challenge of job creation during the Covid-19 pandemic with various steps and efforts, mainly through regulatory reform by issuing Law Number 11 of 2020 concerning Job Creation. The Job Creation Act is here to provide policy directions in carrying out strategic steps aimed at improving and advancing the Indonesian economy.
The government of President Joko Widodo is continuously trying to attract investment into Indonesia. Therefore, the government launched various steps to attract investors into the country. The government provides various fiscal facilities that will be given to business actors who make investments or to industries that participate in developing the quality of Human Resources (HR). In addition, the government also builds various industrial or economic areas. This is done so that problems related to land or land can be made easier.
The government will continue to improve the investment ecosystem by reforming various regulations related to licensing, namely through the omnibus law. This omnibus law concept combines a number of regulations related to business licensing in various ministries/agencies into one law that will serve as a new legal umbrella, which has been stated in the Job Creation Law. Given that in the Act, the President is the highest person in charge of all authorities, it is the President who has the right to regulate, change or revoke if the implementation is not in accordance with the established standards.
The Job Creation Law has several strategic policies. These policies are improving the investment ecosystem and business activities, protecting and welfare of workers, facilitating, empowering, and protecting Micro, Small and Medium Enterprises (MSMEs). The Job Creation Law is expected to create a conducive investment climate, and will absorb more workers, thereby reducing unemployment, increasing economic growth, and increasing worker productivity.
The development of a conducive investment climate and ecosystem with legal certainty is a very important point in the success of accelerated development, especially in terms of creating investment facilities to support national economic growth. Investment has a very strategic position in the level of economic development of a country, especially in ensuring sustainable steady state growth, so that development has real benefits for improving people’s welfare.
Investors, both domestic and foreign, are advised not to worry or be afraid to invest in Indonesia. This is because the government continues to strive to accelerate the implementation of all economic policy packages that can move the national economy. In addition, the government has also guaranteed a safe and conducive investment ecosystem in Indonesia.
*The author is a contributor to the Indonesian Institute for Strategic Information Studies (LSISI)