By: Yusak Caesar )*
Conflicting and overlapping permissions will soon only be a memory. Efforts to simplify regulation through the Omnibus Law are predicted to be able to improve the economy and are predicted to reach 5.3 percent in 2020.
New Year 2020 seems Indonesia is preparing to accelerate with a better economy. Because the Government has a stinky weapon in order to simplify various regulations which are considered complicated and make the economic order become stagnant. Efforts to simplify regulation through the Omnibus Law are said to be able to improve Indonesia’s economy, after all this time it has been considered stagnant and only runs slowly like a snail.
The Omnibus Law concept initiated by President Jokowi is being deliberately cooked until it is ready to take effect in the coming year. This weapon will become the main law for other laws, especially in the economic field. While the previous rules which are considered difficult will be corrected until they become more effective.
In the employment copyright omnibus for example, there are at least more than 70 laws or a number of articles in the 70 laws that have been identified which will be simplified by the government.
While in the Omnibus Law taxation, there are a number of important points in the omnibus law scheme in the area of taxation, namely the amendment of the Law relating to General Provisions and Tax Procedures (KUP), the Income Tax Act (PPh) and also the Value Added Tax (PPN).
Previously, Deputy for Macroeconomic Coordination in the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir said, if the omnibus law had been completed and would be effective, so that Indonesia’s economic growth would certainly be able to penetrate 5.3% in 2020.
According to him, through the omnibus law scheme for employment creation and taxation, global demand for Indonesia will again improve and accelerate. The increased demand will certainly be followed by an increase in investment in the archipelago. The increase in investment is also beginning to be seen from the continued increase in the value of investment commitments from investors who want to enjoy a tax holiday.
The approved tax holiday as of October 20 has reached at least Rp525 trillion for 45 taxpayers. Which cover; Lotte petrochemical, which has a magnitude of almost around Rp44 to Rp46 trillion, then Morowali, an electric car component, nickel, which is in 12 provinces, he added.
He revealed, the realization of the investment commitment has now reached 10% of the total commitment value that was declared. Iskandar also emphasized that Indonesia’s economic growth in 2020 will be fairly good.
He believes through this scheme the investment growth will be more than 7 percent and consumption of 5 percent. So a matter of 5.3 percent is just a simple prediction.
In line with the Deputy for Macroeconomic Coordination in the Coordinating Ministry for Economic Affairs, Public Policy Observer and Legal Practitioners, Dwi Saputro Nugroho also welcomed the government’s plan to implement the Omnibus Law concept. The policy is considered appropriate because it will be able to improve the country’s economy, especially in the investment sector. According to Dwi, the use of the concept of the omnibus law seems to be able to answer the problem of overlapping legislation in Indonesia.
However, careful preparation is needed so that the policy does not harm the country’s economy. In the legislative body itself, the omnibus law already has several proposed bills such as the Employment Copyright Act, and investment simplification.
He said that currently there were still a number of conflicting central and regional government policies which resulted in stagnation of investment. So that there needs to be an application of the Omnibus Law so that all issues related to policies to improve the country’s economy can immediately find a way out. Dwi Nugroho hopes that through this scheme there will be no more obstacles related to investment licensing both from within and outside the country so that the country’s economy remains in stable numbers.
He expressed that high economic growth in a country will be in line with high investment as well. For example, if the government targets economic growth to reach 6 percent, investment growth must be 10 percent. That way, every three months growth can be stable at 5.49 percent and will be in accordance with economic growth with a magnitude of 4.92 percent.
To note, the Omnibus Law itself is a practice of drafting legislation, which is widely applied in countries that adopt a common law system such as the United States (US), Britain, Canada, the Philippines, and other developing countries.
The implementation of the Omnibus Law scheme is expected to be able to free the country from the complexity of the stagnant economic order so far. In addition, this program is not only considered to be able to improve Indonesia’s economy, but also provides fresh air for investors who want to invest in the archipelago. So that employment opportunities are increasingly wide open and suppress the unemployment rate on a large scale.
)* The author is a social political observer