By: Jaka Gunadi) *
The Job Creation Law does not only regulate investment and labor issues, but also business licensing. Entrepreneurs are very grateful for changes in the licensing sector, including retail businesses. This is because the retail business will get permits in an easier and faster way.
The business world in Indonesia is sinking due to the covid-19 pandemic attack. All business people, from the big to the petty class, feel the impact. The reason is because people’s purchasing power has decreased. To help them, the government enacted the Job Creation Law and will soon release its derivative regulations.
The Job Creation Law and its derivative regulations have been highly welcomed by retailers. Chairperson of the Association of Indonesian Shopping Center Retailers and Renters (Hippindo) Budiharjo Iduansjah hopes that the derivative regulations of the Job Creation Law will be in line with the breath of ease of doing business in the articles in the Law. In that sense, hopefully these two types of rules do not overlap.
Budiharjo continued, retail licensing should have been made easier. Because this business is included in the low risk category. Because from an environmental aspect, it does not create hazardous waste. In the past, the real business had to take care of dozens of permits before it was established, but not anymore. Because it is integrated and can be managed online.
In the Job Creation Law the ease of doing business cluster describes changes in the licensing sector. In the past, entrepreneurs had to apply for HO permits, now the majority do not need to. Because permits are changed to be risk-based: high, medium, and low. Only high risk businesses need an HO permit.
Meanwhile, low risk businesses such as retail businesses do not need an HO license and only need an NIB (business license number). The permit can be managed online, making it easier to administer. Besides that, the processing time is also very short, namely a maximum of 7 working days. So that business permits will be issued more easily and quickly, and retailers are calm because their business is legal.
Hippindo was concerned about the inconsistency between the Job Creation Law and its derivative regulations. But they needn’t have worried. Because the derivative regulations consisting of 49 government regulations and 5 presidential regulations are guaranteed not to contravene the Job Creation Law. Because their function is to implement this law in the field. They can wait until February 7, 2021, when the derivative rules are formalized.
President Jokowi has always wanted to reform the bureaucracy, including overhauling the licensing problem in Indonesia, from the beginning of office. He does not like long-winded rules, therefore a Job Creation Law was drafted which made the ancient articles concise but right on target. So that it will facilitate people’s life in Indonesia, especially retail entrepreneurs.
Licensing issues are a bit complex, because before an online system was created, it was prone to corruption. Because the employees who take care of it will ask for facilitation payments. However, the online system will keep you from bad things like this. Retail entrepreneurs will be relieved that business permits can be issued quickly and easily, without having to get involved in KKN.
Retail entrepreneurs must be assisted by the government because they are also in trouble during the pandemic. Assistance through the Job Creation Law and its derivative regulations will be very helpful, because if you already have a license, you can apply for a loan from a bank. So as to increase capital and continue the business.
The Job Creation Law and its derivative regulations are designed to help entrepreneurs, particularly those in the retail sector. Because there are so many of them, and they are the backbone of the economy in Indonesia. If retail entrepreneurs are assisted, their business will run smoothly and the country’s financial condition will improve as well.
) * The author is a contributor to Pertiwi Media