Ultimate magazine theme for WordPress.

The Employment Law on a Powerful Formula to Attract Investors


The government continues to pursue strategies to attract investors from abroad to invest or invest in Indonesia. One of the efforts is to initiate the birth of the Job Creation Act as a legal umbrella. This is because Indonesia is currently still facing challenges and wants to get out of the middle income trap immediately, with the goal of being able to realize the country as a developed country.

The requirement to become a developed country is not enough just to stop at an idea, but there must be real action, namely by carrying out structural reforms in order to accelerate the country’s economic growth. In fact, since the Government enacted the Ciptaker Law, several international institutions immediately gave positive appreciation and response.

With the implementation of the Ciptaker Law, if previously the approach to opening a company license was only based on licensing, now the approach has changed to a risk-based approach, which will also consider all aspects of the risk that might potentially be caused by opening a business.

With a much stronger legal umbrella, the government is able to guarantee certainty and security for every investor when making their investments. It is undeniable that one of the things that can actually be achieved since the existence of the Job Creation Law is that all regulations regarding investment have become much easier with a shortened bureaucracy.

Reforms to cut bureaucracy can be said to be the focus of President Joko Widodo’s cabinet since he took office in 2014, because Indonesia is known to have a complicated and time-consuming bureaucracy. Among them are Indonesian citizens themselves when they want to take care of permits or other important documents, including foreigners who want to invest their capital.

The second thing that makes the implementation of the Job Creation Act easier on investment is that the processing of business licenses can be done online or online and does not take time, thus saving costs and energy. With all these facilities, it is evident that Indonesia is expected to be able to increase its investment achievement to 9 percent per year or around more than Rp 900 trillion.

With the enactment of the Job Creation Law, the business world will be made much more enthusiastic and able to create a stimulus in the realization of a business climate that is much more conducive than before. Not only the ease of investment and business licensing, these two things will also indirectly have an impact on the existence of new jobs that can be absorbed more optimally. This number of jobs is clearly needed because Indonesia is experiencing a demographic bonus, namely the large number of productive age population.

The government’s target in the future after the enactment of the Job Creation Law is that Indonesia is able to rank 40 in the world on the Easy of Doing Business Index (EoDB). For information, in a survey conducted by the International Finance Corporation (IFC) in 2019, Indonesia was ranked 73rd in the world. If our ranking continues to rise, the competitiveness of the national economy will also continue to increase as well.

Since the existence of the Job Creation Law, everything has become easier, there is a guarantee of a legal umbrella and also certainty for investors to various targets that have been set by the Government. The Job Creation Law does prove that this policy is one of the most effective formulas for national economic progress and also makes investors more interested in investing.

Ahmad Dzul Ilmi Muis, the author is an alumni of Airlangga University Surabaya

Leave A Reply

Your email address will not be published.