By: Lisa Pamungkas) *
The passing of the Job Creation Law has brought fresh air to Indonesia, especially in the investment sector. This law makes foreign investors to trust Indonesia as a potential country for investment. Because there are guarantees to make investment easier, and cutting back the bureaucracy that was once confusing.
When Indonesia almost fainted due to the corona storm attack, the government did various things to prevent the economic crisis volume 2.One of President Joko Widodo’s bold steps was to formalize the Job Creation Law in October 2020. Many wonder why you have to legalize a law during a pandemic?
In fact, the Job Creation Law is an effective herbal medicine so that economic conditions will improve again. Because in this law there are dozens of clusters, including investment clusters. The articles in the investment cluster make it easier for investment in Indonesia. So that local entrepreneurs want to invest. Apart from that, foreign investors are also interested because licensing is made easier.
Minister of Law and Human Rights Yasonna Laoly stated that the Job Creation Law is something that is visionary in unraveling the tangled threads of the licensing process which is so complex. He hopes that this law can improve the ease of doing business in Indonesia. because all this time licensing is complicated, and there is a sectoral ego between the central government and local governments.
If this law is applied in the field, the ease of licensing will be the key to changes in the business, economic and investment world. In the past, foreign investors did enter Indonesia but felt tired, because business licensing had to wait for more than a month. Yet for them, time is money. So rather than wasting your time, it’s better to go.
However, currently licensing is made easier because the bureaucracy is cut back. First, business legality can be taken care of online . Investors will be happy because permits can be taken care of while working in the office, so it doesn’t take any more time. Second, a permit request model like this minimizes the potential for corruption by individual officials, because they cannot exploit facilitation payments so that the permit can be completed quickly.
Yasonna continued, licensing problems occurred when there was regional autonomy. So that the preliminaries are complicated, and to overcome them, something reformative is needed. In that sense, the Job Creation Law is a breakthrough in changing the complicated licensing process, because there is synchronization between central and regional regulations.
Foreign investors do not like complicated things, so when there is ease in licensing, they will be optimistic that Indonesia can be invited to cooperate. The proof is, when a few months ago the Job Creation Law was still in the draft law stage, several businessmen had approached the government. They are engaged in manufacturing, batteries, electricity, and others.
When foreign investors enter, the business world will develop. Because foreign investors have the power to inject fresh funds. The existence of cooperation between investors and local entrepreneurs will improve the business climate. Because the funds can be used to help local businessmen who had difficulty continuing their business due to the effects of the pandemic.
In addition, foreign investors can also cooperate with Indonesian citizens who want to open new businesses, but are short of money. If he has a good idea, then financial assistance from foreign investors can make his dream come true. When a new business opens, it will need new employees, and it will reduce the number of unemployed in Indonesia.
Please see the Job Creation Law as something positive. The reason is because the articles in this law can increase investment in Indonesia, because foreign investors are attracted to re-enter. They believe in the future of the business world in this country, because there is ease in doing business and no longer complicated licensing arrangements.
) * The author is a United Muslim Millennial contributor
