By: Made Raditya) *
When Indonesia is hit by an economic downturn due to a pandemic, we must get up and fight. One of them is by implementing the Job Creation Law, because in this Law there is an investment cluster that will attract foreign investors. In addition, this investment will be regulated by the investment management agency (LPI) so that it is more organized.
The Job Creation Law is a law that has shocked the public, because when it was inaugurated it brought pros and cons. Those who oppose actually do not understand what the essence of the Job Creation Law is, namely helping the community to improve their standard of living, because there is an investment cluster that can help revive the Indonesian economy.
Adrian Panggabean, Chief Economist of a private bank, stated that the Job Creation Law could be a driving force for economic activity. With conditions, the government must be consistent in implementing fiscal policy, coupled with monetary stimulus and the financial industry. Fiscal policy is made so that state spending can be controlled. Meanwhile, the monetary stimulus lowered interest rates.
Policies must be carried out consistently, so that Indonesia’s finances can rise. In that sense, when the regulations continue to change, it is impossible to make progress in the economic sector. When there is a monetary stimulus, the interest rate is lowered and it becomes the lowest in history, but still within safe limits.
The government also tries to be consistent in implementing the Job Creation Law, so that there are no differences in regulations, between the central government and local governments. So that all regions in Indonesia will progress, thanks to the Job Creation Law.
This consistency is also carried out in the investment sector. In the Job Creation Law there is an investment cluster, which is expected to be a savior to awaken Indonesia from a difficult time due to the effects of the pandemic. If all the articles in this cluster are implemented, then slowly the state’s financial condition will rise. Because there are foreign investors who inject funds and create new factories in Indonesia.
When investors make new factories, it will automatically reduce the number of unemployed, because they need new employees. When many have jobs, people’s purchasing power will increase, because they already have a monthly salary. When purchasing power increases, the economy will rise. However, everything must be done consistently, so that a positive domino effect like this can occur.
The public does not need to be afraid of the entry of foreign investors into Indonesia, because that does not mean a new model of colonialism. Because the system is cooperation, not coercion. Moreover, foreign investment is regulated by the LPI (investment management agency), so that the administration is more orderly and is not carried out carelessly. So that it is detrimental to one party.
The Investment Management Institution is tasked with finding foreign investors so that they are willing to invest in Indonesia. The task of seducing investors was carried out by Minister Luhut B Panjaitan, whose position was added to take care of the LPI. Meanwhile, the LPI itself is responsible for managing assets, cooperating with other parties, and placing funds in financial instruments.
The LPI also functions to determine potential partners (foreign investors), as well as provide and receive loans and administer assets. The LPI’s job is very important to manage investment, so that investment is efficient, so that the Indonesian economy can revive. This institution is managed by the government and in collaboration with professionals in their fields.
With the implementation of the Job Creation Law in the field, the Indonesian economy will slowly rise. We are optimistic that we can get through difficult times, because there is assistance in the form of foreign investment, which believes in the safety of investment in Indonesia. The investment will be managed by LPI so that it is managed professionally, and brings benefits to both parties.
) * The author is a contributor to the Cikini Press Circle and Student
