Job Creation Perppu Able to Overcome Recession Threats
Jakarta – The threat of recession is already visible and the government is trying hard to keep Indonesia safe and not mired in a financial crisis. One of the ways is to pass the Job Creation Perppu which is expected to provide legal certainty for investors.
The Job Creation Perppu has just been inaugurated but there has been resistance from a number of parties. They need to realize that this Perppu is important in urgent situations and fulfills an element of urgency. The reason is because there is a threat of a recession in the future, and the government must act decisively by implementing the Job Creation Peprpu.
Deputy Minister of Finance (Wamenkeu), Suahasil Nazara stated that Indonesia is entering 2023 with high economic uncertainty due to the threat of a global recession. One third of the world’s countries are threatened with a recession, the impact of tightening monetary policy which is the impact of rising inflation conditions throughout the world. Rising inflation conditions disrupted price stability.
Furthermore, the Deputy Minister of Finance explained, when one third of the world is experiencing a recession, two thirds of countries will definitely be affected. Indonesia is not one of the countries that will be hit by a recession, but must anticipate the threat of a recession by exercising business certainty.
One of the things that is important in Indonesia is business certainty. This is where the Job Creation Law, which has been issued by Perpunya, comes in. Creating certainty so that Indonesia can face a world recession which is predicted to come in 2023.
In a sense, the Job Creation Perppu saves Indonesia from the threat of recession because there is business certainty, both for local and foreign entrepreneurs. Local businesses can develop because there is a MSME cluster in this Perppu. Where entrepreneurs at the small and medium level make it easier to do business, because there is free processing of business license numbers (NIB) and also MUI halal status.
With NIB, local entrepreneurs can develop their business because it is considered valid by the state and trusted by banks or finance companies. He can get a business capital loan and enlarge his business, so that it can grow and get satisfactory results. Entrepreneurs will be free from the threat of recession because their sales will remain good as if there were no pandemics and recessions.
In addition, with the enactment of the Job Creation Perppu, it will be easier for local businesses to obtain halal status by self-declaring. The process is easy, fast, and free of charge by the government. With halal status, it will convince prospective buyers and selling goods are selling well. They are no longer afraid of a recession because their turnover continues to rise.
The Job Creation Perppu is a form of improvement to the Job Creation Law through a public participation mechanism. The aim is to create jobs by increasing the ease and certainty of doing business, investment growth, as well as protection and empowerment for MSMEs amid global economic uncertainty. Recessions and pandemics have caused world economic shocks and must be countered by the Job Creation Perppu.
With the issuance of this Perppu, we can improve state laws and regulations so that the Indonesian economy can deal with conditions that are not ideal in this world, improve the investment climate, strengthen investment in Indonesia, and create jobs, and people can better deal with world uncertainties. .
Meanwhile, economic observer Esther Sri Astuti stated that the Job Creation Perppu provides legal certainty for investors. Especially when they want to invest in Indonesia. Legal certainty is very important especially next year is a political year.
In a sense, the government passed the Job Creation Perppu at the end of 2022 because there are benefits, especially in overcoming the effects of the global recession. In 2024 there will be elections and before this political year there must be legal certainty for investors, especially foreign investors. Before the president changes, there must be a clear legal umbrella to protect investors in Indonesia.
If investors benefit, the community will also benefit. The reason is because the world of investment will make the economy grow rapidly. Investment from foreign entrepreneurs will make the business world more dynamic without having to owe the bank. Then, the world of business and investment will be safer and the impact of the recession will be less pronounced.
The country’s economy is being revived after almost 3 years of being hit by the negative effects of the Covid-19 pandemic. Therefore, the government is trying hard to advance Indonesia and maintain it. One of them is by passing the Job Creation Perppu so that it is hoped that the state’s financial condition will become stable and free from the threat of a global recession. The Job Creation Perppu is able to help Indonesia from the threat of a global recession and the impact of a pandemic. The reason is because this Perppu can attract foreign investors to invest their capital and the country’s foreign exchange will increase. Thanks to the Job Creation Perppu, local entrepreneurs can also develop their business, because there are conveniences that can be obtained from the MSME cluster.