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“Omnibus Law Cipta Karya” Accelerates Economic Transformation

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By: Raavi Ramadan

Omnibus Law Copyright work is the government’s strategy to strengthen the economic sector, one of the strategies is to harmonize the laws so as not to overlap. So that it can have an impact on the acceleration of the nation’s economic transformation.

The Omnibus law was formulated to overcome obstacles to economic growth, so that the government simplified and harmonized the legislation in force through the work copyright omnibus.

In the preparation stage of the omnibus law there are still pros and cons from the relevant parties. But the government is still looking for a balance between what employers want and labor / labor.
The Head of the Investment Coordinating Board (BKPM) is optimistic that the ongoing work and taxation omnibus will participate in increasing investment or investment in the country.

He said, the omnibus law would be an investment instrument that could slow licensing. At the same time incentives are also offered to entrepreneurs. If this can be done quickly the growth in investment realization can be 0.2 or 0.3 percent from the results of the first stage of the omnibus law.
Note from BKPM shows the realization of Indonesia’s investment throughout 2019 reached Rp 809.6 trillion. This achievement was equivalent to 102.2 percent of the government’s target of Rp 792 trillion.
Bahlil said to increase the amount of investment in the country, the government then returned the licensing authority from ministries and institutions (KL) to BKPM. This change of authority is regulated in Presidential Instruction (Inpres) Number 7 of 2019 concerning Acceleration in ease of doing business.
 
Meanwhile, BASF Indonesia President Director Agus Ciputra said that his party appreciated the policy that had been implemented by the government. However, he appealed not only for policies to be encouraged but implementation in the field must also be improved.
He said, there were a number of things that were considered by entrepreneurs. So far the government has focused on efforts to improve the ranking of business ease, but at the same time entrepreneurs who are starting to invest in Indonesia also require a lot of time and money.
Professor of Business Law UGM, Prof. Dr. Sulistiowati, SH., M.Hum, said that the ease of doing business in Indonesia is still far below that of ASEAN countries. This is due to none other than the complexity and obesity of regulations. Data from the Ministry of Law and Human Rights as of January 23, 2020, shows that there are 8,451 central regulations and 15,965 regional regulations that are overlapping.

Sulistiowati said that the ease of doing business in Indonesia is classified as low. The ease of doing business rating released by the World Bank said that Indonesia currently ranks 73 in the world. While the first position was occupied by New Zealand and followed by Singapore in second.
The two countries deregulated and bureaucratized, so that this had an impact on increasing the ease of doing business in their countries.
Therefore, the omnibus law that will be rolled out by the government aims to simplify the regulation of numerous and overlapping regulations, so that the working omnibus law can improve the investment climate in Indonesia.
However, the government also needs to be careful in implementing it, comprehensive identification and mapping is very necessary in order to create efficiency and encourage national economic growth.

Even though there are still pros and cons, the government still believes that the Omnibus Law on Cipta Karya is very pro-laborers.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono said, the government would absorb the aspirations of associations and workers at the Omnibus Law on Cipta Karya.
He explained that in 2045, the government wanted the Indonesian economy to become the fourth largest in the world, besides that it also wanted to get out of the middle income trap.
Then, this economic transformation has also been incorporated into the 2020-2024 RPJMN. Where also discussed various obstacles in the economic transformation efforts, especially in terms of investment.
On a different occasion, President Jokowi said that his party would hold a roadshow or outreach to absorb aspirations related to the Omnibus Law Cipta Karya Bill in at least 18 cities in Indonesia.

Omnibus Law is a government strategy so that Indonesia can become an economically strong country. So that the socialization carried out by President Jokowi is something appropriate to explain to the public about the importance of the omnibus law instrument for accelerating economic transformation.

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