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Perppu on Job Creation Supports Economic Growth


Jakarta — The Job Creation Perppu is believed to be very important to sustain economic growth, because it protects investors so that investment runs smoothly. If there are many investment projects, the economy will automatically be healthy and the community will benefit because employment will increase.

Government Regulation in Lieu of Law (Perppu) number 2 of 2022 was just inaugurated by President Jokowi last December. The government claims that the Perppu replaces Law number 11 of 2020 (Job Creation Law). It is hoped that the new Perppu will support Indonesia’s economic growth.

The Indonesian economy is in a re-growth phase due to the effects of the pandemic for almost 3 years. To overcome this, the government uses several methods, one of which is by passing the Job Creation Perppu. This Perppu is beneficial for economic growth because it is very pro foreign investors. 

Head of the Legal Bureau of the Ministry of Manpower Reni Mursidayanti stated that the Job Creation Perppu is a long journey process. The government’s reason for issuing the Perppu is a combination of the urgent need to face the threat of global uncertainty, both related to the economy and geopolitics, then there is a legal vacuum, so there is a need for legal certainty.

Reni continued, the background behind the birth of the Perppu was that the state needed to strive for citizens’ rights to work and a decent living for humanity through work creation. There is a need for efforts to absorb the widest possible Indonesian workforce in the midst of today’s tough competition.

In a sense, the Job Creation Perppu was created because of the state of the Indonesian economy which was affected by the global economy. Where there is a threat of a recession in 2023. Apart from that, the world is also just recovering from the effects of the pandemic which has also had a bad impact on the economies of many countries.

For this reason, the government does not want to add to the burden on the people by continuously going into debt to nourish the Indonesian economy. However, the way to do this is to pass the Job Creation Perppu which is pro-investor and the money raised will be ‘played’ to support economic growth in this country.

Why is there a Perppu that is pro-investor? When there are investors, there will be a positive domino effect. Where did they come and build various factories with various fields in Indonesia. The economy grew because the business world became more dynamic and new factories appeared. Investors are sure to invest their capital because there is a guarantee from President Jokowi and the Perppu Cipta Kerja as a strong legal umbrella.

The positive domino effect of the Job Creation Perppu is that this regulation attracts many investors and new factories and businesses emerge. The business world is becoming more dynamic and automatically adding jobs. People can work again and get a monthly salary. With this salary, it can be spent and the wheels of the country’s economy run fast.

Indonesia’s economic growth is heading in a positive direction and people are no longer afraid of being overshadowed by recession, inflation or financial crises. They believe that the government will make pro-people regulations. One of them is the Job Creation Perppu.

Meanwhile, Deputy President KH Ma’ruf Amin stated that the Job Creation Perppu was made for the country’s economic stability. The issuance of this Perppu is to fill the regulatory vacuum while the Job Creation Law is being revised, based on a Constitutional Court decision.

The Vice President continued, the regulatory vacuum is very dangerous. Therefore the Job Creation Perppu was ratified by the government. That way, there will be guarantees and a legal umbrella for investors so that they can invest in Indonesia safely.

In a sense, the regulatory vacuum is indeed dangerous, especially when it comes to the economy and investment. Don’t let the country’s economy decline because there are no binding regulations and keep it from getting out of the corridor. Therefore the Job Creation Perppu is here so that the Indonesian economy remains stable.

The economy can be stable when there are many investors coming in. Moreover, one indicator of a country’s progress is the amount of investment there. Therefore, the government issued a Perppu that can protect foreign investors, so that they will no longer hesitate to do business in Indonesia.

The Job Creation Perppu cuts complicated permits. So that foreign investors will easily get permission when they want to start a company in Indonesia. With this Perppu, permits can be taken care of online through an integrated system. The system will set up so that licensing is done quickly, in just a few working days.

Investors will not be afraid of being stymied by long and tedious bureaucracy. The reason is because they understand that regulations have changed and the Jokowi government has broken down by cutting bureaucracy, so it doesn’t beat around the bush.

The Job Creation Perppu supports Indonesia’s economic growth where this regulation is very pro-investor. With so many businesses resulting from investment, the state’s financial condition will be healthier. The community also benefits because many factories are established and they get jobs, so they can meet their needs .

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