The Job Creation Law Gives Hope for Economic Recovery in the Covid-19 Era

By: Eka Kurniawati) *
The Job Creation Law is a breakthrough for the Government to cut regulations. With this simplification, the Job Creation Law is believed to be able to provide great hope for economic recovery during the Covid-19 Pandemic.
Academic of the Christian University of Indonesia (UKI), Dhaniswara K Harjono, assessed that Law Number 11 of 2020 concerning Job Creation gives hope of national economic recovery during the Covid-19 pandemic.
Dhaniswara said that in the midst of the Covid-19 Pandemic, Indonesia was able to present a new law product that gave hope, namely the Job Creation Law. The Job Creation Law, which consists of 116 articles, is able to revise 77 previous laws, which apparently overlap and are uncertain.
According to him, the Job Creation Law touches on the issue of licensing and investment in which the implementation of this law is an effort to increase investment which will open up wider employment opportunities.
One of the positive sides of the Job Creation Law, according to Dhaniswara, is that it is easier to build a company, does not require a lot of capital. If in the past the minimum was IDR 50 million, now you don’t need it.
The Job Creation Law is needed to overcome various existing problems and challenges in the future. Such as taking advantage of the demographic bonus that Indonesia will experience in the next 10-20 years (2020-2040), then simplifying, synchronizing and trimming regulations because there are too many regulations issued at the central and regional levels that hinder business activities and job creation.
The Chancellor of UKI said that we will be faced with future problems, including the demographic bonus in 2030 and its peak in 2040. This means that the composition of the number of productive age will be much greater. We need solutions to anticipate this demographic bonus by increasing employment.
The BPS survey shows its estimation that by 2030 there will be at least 52 million people of productive age who need employment.
According to him, the demographic bonus is like a double-edged sword. If jobs are not prepared, it can have a negative impact in the future.
Therefore, the government through the Job Creation Law, as early as possible has made efforts and simplified regulations related to business licensing in Indonesia. This is very positive for creating a conducive investment climate, so as to attract more investors both from within and outside the country.
Meanwhile, Professor of IPB Prof. Yanto Santosa assessed that Law Number 11 of 2020 concerning Job Creation or Ciptaker could be an acceleration of economic recovery after the Covid-19 pandemic.
In his written statement, Yanto said, when investment increases, of course employment will also increase, this is actually the purpose of the Job Creation Law, for the welfare of society. This means that its presence can accelerate the national economic recovery after the Covid-19 pandemic.
Of course, to implement the Job Creation Law so that it is in line with the government’s expectations, including simplifying licensing regulations, encouraging ease of investment and increasing employment, of course there are a number of conditions that must be met.
The first prerequisite is that business actors must be made equal partners, not as a party to suspect or be watched out for.
The next prerequisite is that the type of business must be differentiated into two, namely a business that is an initiative or initiative of the government and a business that is an initiative or initiative of a business actor.
For the type of business that is a government initiative or initiative, all licenses should be handled by the government, so that the business actor only needs to carry out his business operations. Meanwhile, for the type of business that is an initiative or initiative of a business actor, the process of obtaining permits is carried out by the business actor with constant assistance from the government.
Then, there is a guarantee of legal certainty and consistency of policies or regulations between the central, provincial and district or city governments. The Sapu Jagat Law must be able to simplify, synchronize and trim regulations because there are too many regulations that are enforced at the central and regional levels that hinder business activities and job creation.
The Job Creation Law also provides legal certainty and convenience with the existence of standards, particularly those related to business licensing requirements and processes. The aim is to avoid irregularities in the business licensing process.
Covid-19 is still a pandemic in Indonesia, the impact of this pandemic seems to not only have an impact on the health sector, but also the economic sector, where many companies are forced to lay off their employees. The Job Creation Law is certainly a concrete foundation for the recovery of the economy in Indonesia.
) * The author is a Muslim United Bogor Millennial contributor