By: Zakaria) *
When entrepreneurs are close to bankruptcy due to the effects of the pandemic, what should they do? Want to borrow money, but there is no collateral. One way to rise is by working with investors, especially foreign investors. The Job Creation Law brought many investors into Indonesia and saved local entrepreneurs.
Investment is one way to make a business survive, because with the money from investors, production in factories will start again and workers can be paid again. But unfortunately, foreign investors have been choosing neighboring countries to invest, due to the lengthy bureaucracy. This is very unfortunate because Indonesia is actually a potential market.
To overcome this, the government promulgated the Job Creation Law in October 2020. In this law, there is a guarantee of ease of investing for foreign investors. There are changes in the terms of business in Indonesia. Namely the aspect of ease of doing business, empowering MSMEs, accelerating national strategic projects, increasing workers’ rights, and improving the investment system.
When the government is serious about improving the investment system, the first thing to change is the bureaucracy. Foreign entrepreneurs want to enter Indonesia because there is a guarantee of ease in processing permits. The process only takes about a week. Much different as before, which had to wait for months.
This slow process has finally made foreign investors give up on cooperating in Indonesia. Moreover, when going to speed it up, the elements asked for facilitation payments. However, when licensing can be faster, and va is done online, they will discourage them from leaving Indonesia.
For foreign investors, time is money. So they really appreciate the rules in the Job Creation Law that speed up licensing. Also happy with the innovation of online legality processing. So you don’t have to meet with corrupt employees. Indirectly, the Job Creation Law also eradicates KKN in Indonesia.
When foreign entrepreneurs enter Indonesia, local entrepreneurs can submit cooperation proposals. They already have quite a name in this country. With funds from foreign investors, local UMKM businesses can rise again. Because there is a capital injection from them.
When the Indonesian little native entrepreneurs rise again, they can breathe a sigh of relief. Because you don’t have to be confused about finding loans without collateral, even trapped in the cruelty of loan sharks. However, they can produce goods again and market them, thanks to funds and an injection of motivation from foreign entrepreneurs.
This cooperation was clearly beneficial and could not be called colonialism, as some people alleged. Because both foreign and local entrepreneurs have their own strengths.
It is impossible for foreign entrepreneurs to colonize, because they are bound by cooperation agreements with local businessmen.
In fact, there are local entrepreneurs who benefit from this collaboration. Because the Job Creation Law states that foreign entrepreneurs are required to transfer technology or provide new knowledge to local businessmen. So that Indonesian entrepreneurs get new insights, get smarter, and become more resilient in managing their business.
Foreign investors also provide good examples, for example discipline, obedience to time, high product standards (not as long as they enter quality control). Even if possible, the products are included in the export market. So that this collaboration is increasingly beneficial for both parties.
The Job Creation Law is very beneficial for the investment sector, because many investors are interested in entering Indonesia. They are happy because they have guaranteed ease of doing business and also licensing. So that legality can be obtained quickly, easily, without bribes, and without complicated. Local entrepreneurs will be able to work with foreign investors and there is a symbiosis of mutualism.
) * The author is a citizen living in Bogor
