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Job Creation Law Facilitates Business Establishment

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By: Dodik Prasetyo )*

The number of entrepreneurs in Indonesia is still 3%. This percentage is very minimal, because we need more business people to move the wheels of the country’s economy. To support the people who will set up businesses, the government has made a Job Creation Law with a cluster of ease of doing business and MSMEs. They got a lot of advantages.

The business world is very dynamic and makes business people get maximum benefits. But unfortunately in Indonesia there are more people who want to be employees than entrepreneurs. Because you will get a monthly salary. However, there are also people who are forced to become employees because of frustration when opening a business and their establishment and legality are hindered by bureaucracy.

Obstacles to establishing a business can be obtained from many things. First, there is a lack of capital to open a company. Second, they have a selling idea and are desperate to open a business but they have no legality. When going to export their merchandise, they had to be postponed because clients from abroad asked about their official business license.

To overcome this problem, the government added a cluster of ease of doing business in the Job Creation Law. In this cluster, when a small entrepreneur wants to establish a company, the requirements are not as strict as before. They do not have to give 50 million rupiah if they want to establish PT.

Limited companies can be established smoothly without being involved in licensing problems. Every young man will be an entrepreneur by having business legality. So that they are not forced to become employees, but follow their passion to become entrepreneurs. All this is thanks to the Job Creation Law, which is not only beneficial for workers but also small-scale entrepreneurs.

When the PT will be established, the entrepreneur will be calm and focused on expanding his business. It’s no secret that there are businessmen who are still traders. In the sense that they sell goods but do not use a strategy, so transactions are quiet. Even though they have promoted through social media, they are not very popular.

To overcome this, there will be assistance from the government. This was stated by the deputy chairman of the DPR RI Azis Syamsudin. So UMKM entrepreneurs are not left alone, but receive training, mentoring, and knowledge of doing modern business. Its function is to increase business competitiveness and increase capital to expand its business.

If entrepreneurs receive assistance from the government, they are happy because they will get new knowledge. In the form of product branding, digital marketing, and others. Promoting on social media does have art, it cannot display selling photos. But you have to interact with potential clients, post useful statuses, and so on.

When there is assistance from the government which is an application of the Job Creation Law, then UMKM entrepreneurs are also collaborating with the central and local governments. Since the Employment Creation Law was enacted, the local government can ask entrepreneurs to provide food and souvenirs for guests. This cooperation will benefit small business people.

The Job Creation Act also makes it easier to set up a limited liability company quickly. Because in the past we had to wait for approval from the minister. But now the government has cut the bureaucracy. Because the company can get an establishment permit if it already has proof of registration. Just waiting for the approval from the Ministry of Law and Human Rights.

The establishment and processing of legality of a limited liability company can also be done online, so the process is much faster than in the past. Because entrepreneurs do not need to come to other state agencies and agencies to obtain the legality of the company. This method saves costs too.

The Job Creation Law makes prospective entrepreneurs determined to choose the trade route, because they can set up a limited liability company with minimal capital. The time to get the permit is also fast because it can be managed online. The business world in Indonesia will be more vibrant thanks to the arrival of many new entrepreneurs.

)* The author is a contributor to the Indonesian Strategic Information Studies Institute (LSISI)

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