Omnibus Law Creating Work Solutions to Save MSMEs during the Covid-19 Pandemic
By: Burhanudin Putra )*
The Covid-19 pandemic has impacted not only the health sector but also the economy, including Micro, Small and Medium Enterprises (MSMEs). The public also believes that the Omnibus Law on the Job Creation Bill is one of the solutions to save the sustainability of MSMEs in times of crisis due to infectious disease outbreaks.
The government is currently discussing a Work Creation Bill (RUU) to become a legal product in the form of a law. The Job Creation Bill is also known as the Omnibus Law because this regulation is so broad that it can revise many laws in a short time.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said the Omnibus Law was made by the government to simplify various licensing and investment requirements so that entry is easy. In this way, jobs will be created.
He also said that so far Indonesia is still less competitive with neighboring countries such as Vietnam, Malaysia and Singapore in terms of investment. Even though Indonesia is a big country.
In addition to simplifying the investment process, the Omnibus Law is also expected to be a breath of fresh air for MSME players.
The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, emphasized the importance of ratifying the Work Creation Omnibus Law Bill (RUU).
The bill is considered capable of boosting the performance of business actors, including micro, small and medium enterprises (MSMEs).
According to him, the Omnibus Law Bill has facilitated MSME actors, especially at the licensing approval stage. Through this global broom regulation, the government has also made efforts to minimize the requirements required by MSME actors to obtain business permits.
Bahlil wants the Omnibus Law Law to facilitate MSME permits with just one sheet.
With a workforce of up to 120 million people, MSMEs are said to have an important role in the national economy.
In addition to simplifying the licensing process, Bahlil also encourages consumption of MSME products to be increased. In fact, in order to improve quality, big business actors are required to collaborate with MSMEs.
He also emphasized that MSMEs and large industries are equally important, especially in the midst of the current economic downturn, MSMEs are projected to be able to boost the performance of national investment realization.
MSMEs have the potential and strategic roles in the national economy, it is proven that MSMEs can survive and move the wheels of the economy in the face of economic crises, as well as for the long term in the future.
Kemenkop / UKM noted that the number of MSME players in Indonesia has reached around 64 million business units. For this reason, empowerment and protection of MSMEs are important things to be discussed in the Job Creation Bill. Moreover, UMKM is a solution to face the demographic bonus in the future.
Chairman of the Permanent Committee for Exports of the Chamber of Commerce and Industry (KADIN) Handito Joewono also said that the Omnibus Law also needs to target Micro, Small and Medium Enterprises.
Handito said, there are many regulations that really hinder, especially for MSME actors. Some time ago, there was a case of MSME products in one area that almost failed to export. Because they do not have a permit as required by the applicable law.
On different occasions, Muhammad Firdaus as Professor of the Faculty of Economics and Management of IPB said. Micro enterprises need to be provided with ease of tax administration. Micro and small business activities can be used as program credit guarantees. There is convenience in managing IPR, importing raw materials and facilitating export.
Not much different from what was conveyed by public policy observer Trubus Rahadiansyah, he stated that the Omnibus Law can also provide capital facilities for MSME players in Indonesia.
He continued, specifically the Job Creation Bill would automatically facilitate the capitalization of MSMEs. He said capital is an obstacle faced by MSMEs today.
He also added that MSMEs are at the forefront of the nation’s economy. He noted that 90 percent of people work in the UMKM sector. If UMKM actors find it easy to get capital to matters of licensing, of course you can imagine how much workforce will be absorbed so that this will bring new job vacancies.
Through the Omnibus Law, the central government also facilitates business licensing for MSEs, namely by taking an active role in conducting guidance and registration for MSEs. Registration of MSEs is carried out by providing an electronic business identification number (NIB) through Business Licensing.
During the Covid-19 Pandemic, MSMEs experienced a tremendous impact, especially in terms of production to distribution, so that not a few MSMEs were constrained by financial problems and were forced to lay off their employees. Therefore the Omnibus Law can certainly be a breath of fresh air for MSMEs to rise during the Pandemic.
)* The author is active in the Cikini Press and Student Circle