By: Lisa Pamungkas) *
The Omnibus law of the Job Creation Law has not only changed the climate of employment and investment, but also mining. There will be a positive effect in the mining world, because this law invites foreign investors to enter Indonesia. The mining business will be more vibrant and will make our economic conditions rise again.
Indonesia is known as a country that has a lot of natural resources, ranging from gold, silver, to coal. This mining material, called ‘black gold’, costs quite a bit and makes the coal business in great demand. Unfortunately, there are several regulations that make it difficult for them, and make them withdraw because their capital is also very large.
The Job Creation Law will address several problems in the mining sector . First, there is a royalty of 0% for entrepreneurs which will add value to coal (downstream). The downstream problem is very important, because it can accelerate coal as an economic booter, compared to the revenue driver. So that it accelerates the absorption of labor.
Labor absorption is very important because it will reduce the number of unemployed. During the pandemic, the layoffs of employees increased sharply. If there is a new mining industry that will be opened, thanks to the Job Creation Law , they can apply there and get a permanent job. So that they have an income and the kitchen smoke can still be steaming.
Muhammad Faukhan, chairman of the Kebumen KADIN stated that after being inaugurated, the omnibus law on the Job Creation Law could increase the legal price of coal. Indeed, this mining material has a unique pattern, at a certain time the stock can go up. When there is a moment when the Job Creation Law increases the share price, the shareholders will be happy, because the profits are big.
If the coal stock price rises, the government will also benefit, because it gets multiple profits. Also can increase the country’s foreign exchange. This income is very important, so that Indonesia’s financial growth can rise again, and keep our country from the brink of recession. The economic downturn will gradually heal and we can move forward again.
Currently coal will also be subject to value added tax. However, this is considered normal because other mineral materials such as gold, silver and manganese are also subject to VAT. This tax can be useful for the state because it can be used for other purposes. For example, for the national economic recovery program, which will improve the financial condition of the community.
Moreover, the PRC is rumored to be buying coal produced by Indonesia because it knows its good quality. Not half-hearted, this coal purchases weighing 200 tons, worth 20.6 trillion rupiah. They are also happy because the Job Creation Law improves mining regulations, making it more orderly and facilitating bureaucracy.
The Job Creation Law is also beneficial because mining business permits are made easier. The initial rule was the nomenclature for the extension of the work agreement for coal mining entrepreneurs to become a special mining business license. With this change, the steps of mining entrepreneurs will be carried out and they will no longer be confused by the lengthy bureaucracy.
Foreign investors will also want to enter Indonesia because the regulations in the mining world have been changed for the better. They will create a mining company with a cooperative system, and make the business and mining world more lively. If there is an injection of funds from investors, the mining business will be more modern and advanced, because the tools and knowledge are new.
The Omnibus Law The Job Creation Act is able to improve the mining sector because changing the bureaucracy is easier. So that foreign investors will want to enter Indonesia and cooperate with local mining entrepreneurs. This collaboration will benefit the mining world and make Indonesia more advanced.
) * The author is a United Muslim Millennial contributor