By: Edi Jatmiko) *
The Omnibus Bill of Work has been supported by a majority of parties in parliament. The bill is considered as a breakthrough by the government against overlapping laws and regulations in order to improve the welfare of the community.
The work copyright bill was proposed as a strategy to overcome various economic and business problems, mainly related to the many overlapping regulations, and the effectiveness of investment that is still stagnant.
The Employment Creation Bill is also expected to be a way out to overcome the unemployment rate, the new workforce and the number of unemployed residents. At present, the number of MSMEs is quite large, but their productivity is still low. This is certainly a good hope for the workforce who have not found work.
Meanwhile, Deputy Chairperson of Commission XI Fathan Subchi expressed his full support for the discussion of the Omnibus Work Copyright Bill. The politician from the PKB faction considered the regulation as a solution to accelerate poverty reduction in the country.
Fathan explained, in the last five years economic growth was relatively stagnant at 5 percent. Although the growth rate has made the domestic economy relatively stable, it has not been able to provide a great opportunity for the economic leap.
One of the results of the analysis states that the stagnation of economic growth is due to the lack of long-term investment into Indonesia.
He considered, most investors are those who want to invest in the short term so that it does not have an impact on the creation of domestic industrialization solidity. Investors will also think again if they want to invest in the long term in Indonesia. According to him, this is a natural thing considering that various indicators of Indonesia’s competitiveness are not very encouraging.
Fathan also gave an example, licensing procedures in Indonesia are still complicated. The length of the licensing bureaucracy makes the opportunity for rent to be opened so that investors will pay double the investment costs when compared to having to open a business in another country.
In addition to licensing issues, this country is still haunted by the problem of the high cost of starting a business, the low level of education of workers, the labor market that is not conducive and low levels of innovation.
The low indicator of business competitiveness is widely known by the world, as noted by the World Economic Forum (WEF) which records Indonesia’s competitiveness is only ranked 50 out of 141 countries.
The Indonesian President Joko Widodo also acknowledged this concession, where he once said that one of the fundamental problems in attracting direct investment from abroad was the complexity of the bureaucracy in the country.
Therefore, the Omnibus law Cipta Karya is something that is needed, because if it is revised one by one, it will take at least 50 years to complete. Currently our economic growth is threatened by world recession due to trade war and the spread of corona virus.
On different occasions, support for the ratification of the work copyright omnibus bill also came from the Indonesian Youth National Committee (KNPI). This support was stated in the National Coordination Meeting (Rakornas) of the KNPI DPP which was attended by 34 Provincial DPD leaders in Jakarta.
KNPI DPP Chairman Noer Fajrieansyah said, the omnibus law was the way of Joko Widodo’s administration in dealing with various economic challenges. The vision of Indonesia 2045, which wants to make Indonesia one of the great powers of the world economy, is a necessity and one way to achieve that vision is by making and ratifying the Omnibus Law with the DPR
He considered, currently various regulations in Indonesia can be considered not friendly to investment. Based on the Ease Business Survey by the World Bank, the ease of business licensing in Indonesia is ranked 73 out of 190 countries.
The position is still far below that of ASEAN countries such as Singapore which is in second place, Malaysia in 12th position and Thailand in 21st position.
investment needs to be increased in line with the increase in Indonesia’s competitiveness in the eyes of the International. You do this by simplifying the licensing process which is complicated and must be made based on risk. So that the Omnibus Law Cipta Karya Bill could be a solution to overcome the problem.
) * The author is a social political observer
