By: Firdaus) *
The government is designing an omnibus law concept that functions to reduce bureaucratic obstacles in the investment sector. Omnibus law schemes can be used to deregulate in order to avoid overlaps and achieve efficiency in policy implementation.
It was recorded that from 2014 to November 2019, 10,180 regulations were issued. The regulations consist of 131 laws, 526 government regulations, 839 presidential regulations and 8,684 ministerial regulations.
It seems that the number of regulations that many times overlaps and is not in harmony. Therefore, the central government is trying to discuss the Draft Omnibus Law in the form of a law (UU). Where one law is expected to be able to revise and simplify dozens of regulations.
During the Covid-19 Pandemic, the economic sector in Indonesia was clearly hit hard, the impact was no joke, from reducing wages to reducing employees.
If this regulatory obesity is left in the midst of a crisis, it will make it difficult for the Indonesian economy to move and recover.
Deputy Chairman of the Indonesian Chamber of Commerce (KADIN) Riau Iva Desman said that domestic consumption and investment have been variables to support Indonesia’s economic growth. According to Iva, in the future, investment must be projected as the main pillar of economic growth.
He also encouraged the DPR to immediately pass the Work Creation Omnibus Law Bill, because this regulation can help deal with the economic impact during the Covid-19 pandemic.
If later the pandemic status has been lifted but Indonesia is not ready for a fast regulatory vehicle, then this will of course hinder the process of economic recovery.
Iva also appreciated the efforts of the government and the DPR which involved elements of employers and workers as the most affected in the deliberations on the Omnibus Law on Job Creation. According to Iva, there is great hope that this legal product can help accelerate Indonesia’s economic recovery.
In Latin, the word omnibus law means for everything, which means that this concept is like describing the proverbial one once rowing two or three islands. Concretely, a new regulation that is formed will simultaneously replace more than one other regulation that is already in effect.
So that the impact, administrative processes such as business establishment will be faster because it does not require many regulatory doors. This can also minimize the possibility of extortion.
Head of the Investment Coordinating Board (BKPM). Bahlil Lahadalia hopes that the Work Creation Omnibus Law Bill can minimize the practice of extortion (extortion) which is often the complaint of investors when realizing their investment in Indonesia. Of course, this can have a positive impact on the economy.
He also said that the Cipta Kerja Omnibus Law did not automatically eliminate the practice of extortion, but was expected to minimize the potential for extortion practices.
We all know that the practice of extortion has existed since the VOC era. However, the current generation certainly must be able to reduce extortion through regulations in the Job Creation Omnibus Law.
Bahlil also assessed that in addition to reducing extortion, the Work Creation Omnibus Law Bill is expected to be able to ward off corruption. This is important because perceptions of corruption in Indonesia are still very high. It was noted that Indonesia was once in the order of 85 out of 180 countries that were considered the most corrupt.
The perception of a corrupt country apparently affects the value of Indonesia’s Incremental Capital Output Ratio (ICOR). Compared to neighboring countries, Indonesia’s ICOR is at 6.6. While Thailand is at 4.4. Malaysia 4.5 and the Philippines 3.7.
ICOR itself is a parameter to indicate the level of investment efficiency in a country. A high ICOR indicates a low level of efficiency.
Meanwhile, BPKM also hopes that the Work Creation Omnibus Law Bill can be passed in October 2020. This also aims to increase investment and accelerate economic recovery. Based on the latest data, BKPM estimates that the investment realization in the third quarter will be better than the second quarter.
The Work Creation Omnibus Law Bill provides new hope for prosperity in Indonesia. For investors and owners of capital, the Omnibus Law Cipta Kerja Bill is certainly a breath of fresh air to be able to start a business without complicated licensing processes and minimal extortion practices.
) * The author is active in the Jakarta Student Movement (Gema)
