Omnibus Law on Job Creation, Solution to Save the Economy During the Covid-19 Pandemic
By: Ade Istianah )*
The large number of overlapping regulations from the center to the regions has made the government design an omnibus law formulation which is expected to streamline regulations so that problems related to difficult regulations and the difficulty of incoming investment are far more efficient in terms of cost and time.
The Omnibus Law system, which allows 74 related laws to be discussed into one legal umbrella, is certainly a very efficient thing in the legislative budget.
In the conditions of the Covid-19 pandemic, efficiency in obtaining business permits can be easier. So that with the passing of the Work Creation Omnibus Law Bill, it is hoped that it will also be able to encourage the growth of new jobs, so that many workers are absorbed and the economy can increase.
On different occasions, tax observer and special financial staff Yustinus Prastowo considered the Omnibus Law on the Job Creation Bill (RUU) to be the most likely strategy to be taken to solve economic problems that arise due to the Covid-19 pandemic.
According to Yustinus, from an objective point of view, Indonesia before the Covid-19 pandemic had experienced difficulties in raising the Ease of Doing Business (EoDB) ranking. The Global Competitiveness Index, which had improved in 2017, finally stuck and fell again due to obstructed regulations and investment.
He explained that during this pandemic, our economy, which was usually supported by household and government spending, practically intervened. The continued encouragement of government spending also has limits. Automatically we really need investment to support our economy.
In addition, the legal certainty of the Job Creation Bill also encourages legal certainty to start a business. Various permits for entrepreneurs and people who want to start micro, small and medium enterprises are also facilitated.
Regarding labor clusters that reap the pros and cons, Yustinus said that the public should be able to see more clearly and do not need to be in a dichotomous position. Regarding “outsourcing”, he considered that the middle way could still be communicated. Regarding the reduced severance pay, the government offers unemployment benefits, which in fact will further ensure the sustainability of workers.
On different occasions, economic observer Rahma Gafmi believes that the Job Creation Bill can help Indonesia escape the economic recession. The reason is, he said the Job Creation Bill would attract a lot of investment into the country.
Rahma assessed that the Job Creation Bill was a regulation that could solve various problems. Solve various problems. For example, the Job Creation Bill could make the current overlapping regulations clearer.
He explained that many and overlapping regulations have become an obstacle to investment entering Indonesia. In fact, he said investment is a weapon to face an economic recession.
Rahma said, there was no way out, except how to make investment positive. Because we know that a positive investment will expand job opportunities.
We need to admit that the low purchasing power of the people during the pandemic had a negative impact on the national economy. He said the low purchasing power will automatically reduce productivity.
But how can we build a strong public purchasing power if, for example, there is no expansion of job opportunities. One of the driving forces for expanding employment opportunities is building investment, both from outside and domestically.
Meanwhile, the Minister of Agrarian Affairs and Spatial Planning or the Head of the National Land Affairs Agency (ATR / BPN). Sofyan A Djalil assessed that the polemic related to the Job Creation Bill was more due to a misunderstanding or not fully understanding the intent of the Job Creation Bill. In fact, this bill was made to create more jobs.
So that the Indonesian economy can grow higher, according to Sofyan, there needs to be improvements in terms of ease of investment and doing business. This can be accommodated in the Job Creation Bill.
He also agrees that currently there are so many regulations that hamper investment entry. Various obstacles in value that are trying to be addressed through the Job Creation Bill.
The Omnibus Law Cipta Kerja is something that is expected to save the economy in difficult times such as the Covid-19 pandemic. Discussions related to this regulation need to be done so that the Indonesian economy can rise from its downturn.
)* The author is a citizen living in Bandung