By: Edi Jatmiko) *
The government continues to make breakthroughs to improve Indonesia’s economy, one of which is through the Omnibus Law Ciptaker. The Draft Law is also believed to be able to increase investment to re-enter Indonesia in order to accelerate economic recovery during the Covid-19 pandemic.
The Covid-19 pandemic situation is indeed a challenge in itself for economic diplomacy to encourage foreign investment to enter Indonesia. Moreover, the situation of handling the pandemic in each country is also one of the considerations in investing.
However, we also cannot close our eyes that investment licensing in Indonesia does seem complicated. Previously, the Head of BKPM Bahlil Lahadalla said that as many as 190 cases of investment that appeared were caused by various inhibiting factors, including problems in licensing, land acquisition and regulations or policies.
In 2019, there were around 24 companies that had entered the pipeline with a value of Rp. 708 trillion. However, a number of companies have been hampered from realizing their investments due to stumbling blocks in various investment cases.
Bahlil also said that the licensing process in Indonesia is like waiting for a chicken to grow teeth. Because investors need to go through long stages so that they can realize investment in the country.
The length of the investment licensing process is due to the many overlapping regulations between the central government and regional governments. This resulted in an investment of Rp. 708 trillion stalled in 2019.
The stagnation of hundreds of investments was due to sectoral arrogance between ministries / agencies of K / L and local governments. The complexity of this problem is compounded by the presence of individuals who take advantage of the investment licensing process for personal gain.
In addition, the existence of an integrated electronic business licensing system or Online Single Submission (OSS) does not 100% help investors in obtaining the investment permit process in Indonesia. For Bahlil, OSS is like a “batman trap” for entrepreneurs and investors.
On different occasions, Indonesian President Joko Widodo said that the corona virus pandemic had added challenges to the economic sector.
Especially when the status of the pandemic was determined, many companies and industries were forced to lay off their employees. So that the unemployment rate has increased. Even though this year many schools or universities have created a new workforce, of course they will find it difficult to find work.
To overcome this problem, of course there must be joint efforts so that the Covid-19 pandemic period can be passed. One of the efforts that have been designed by the government is to draft a Work Creation Omnibus Law Bill.
Economic Observer from Sebelas Maret University Lukman Hakim said that simplification of regulations and business licensing through the Omnibus Law can restore investment performance after the end of the Covid-19 pandemic.
Lukman said the Omnibus Law can also solve bureaucratic and regulatory problems so that the sluggish economic performance due to the pandemic can grow again. So far, the licensing problem that has taken too long is considered to be one of the reasons for the difficulty of capital flows to stop by Indonesia, both from foreign and domestic business actors.
According to him, efforts to resolve regulatory overlaps that have been going on for a long time cannot be achieved instantly.
He also wants socialization related to the Omnibus Law on Job Creation in order to increase the enthusiasm for reforming regulations in Indonesia. So that this can be an attraction for investors.
The government has also properly prepared the omnibus law on business licensing. Therefore, if the formation of this regulation is targeted for completion within the next month, it is certainly not something rushed.
Before the omnibus law was formulated, the government had also identified rules relating to authority and ease of licensing.
This is because in terms of authority, there are always obstacles in the licensing process. Overlapping powers from the level of the president, ministries and institutions, the industrial sector, to local governments are an inhibiting factor and must be broken down.
If the issue of authority has been resolved, then enter the articles relating to licensing issues at the central, regional and government ministries and agencies as well as respective sectors.
In this case, there are 2 laws that will be revised, first the regional government law with 12 articles, and the state administration law.
Meanwhile, for the laws in the business licensing sector, 72 laws have been found that will be revised.
Of course, the existence of investors must be maintained, so that the economic cycle in Indonesia becomes unstable because investors are hesitant to invest in Indonesia.
) * The author is a contributor to the Cikini Press Circle and Students
