By: Namira Purbananda) *
The Job Creation Law is one of the Government’s breakthroughs to summarize all forms of inhibiting regulations. Baleid is also believed to be a form of business licensing reform so that the national economy can move back into motion.
Prof. Budi Mulyanto as an IPB Academician said that the presence of Law Number 11 of 2020 concerning Job Creation (Ciptaker) addresses the chaotic problem of business licensing regulations in Indonesia. This work copyright law will provide legal certainty, create efficiency in business licensing regulations and investment competitiveness.
He said that the Omnibus Law in other countries has been widely implemented with the aim of improving regulations in their respective countries in the context of creating jobs and improving the climate and competitiveness of investment.
According to him, there are several consequences resulting from legal and regulatory uncertainty. First, there are many agrarian problems such as disputes, conflicts and agrarian / land cases.
Second, national economic development has become sluggish. Third, employment opportunities are difficult to develop, even though the workforce continues to increase so that there are many unemployed people.
Fourth, Indonesia is ranked 109 in the lowest Ease of Doing Business (EODB) in ASEAN (2016). Prof. Budi explained that the Job Creation Law is a solution to one of the problems emphasized by the EODB assessment for Indonesia, namely licensing issues to legal uncertainty that is an obstacle for business actors to invest.
The professor of Soil Science of IPB added that the benefits of the Job Creation Law can simplify, simplify the process and increase productivity in drafting regulations.
The Job Creation Law as a regulatory reform strategy aims to make the arrangement of many laws and regulations simultaneously carried out. The aim is none other than to avoid irregularities in the business licensing process.
Based on data from the Ministry of Law and Human Rights (Kemenkumham) as of February 20, 2020, there are 8,451 central regulations and 15,965 Regional Regulations that describe the complexity of regulations in Indonesia.
The Omnibus law is also seen as one of the creative breakthroughs in reviving the economic sector to create quality jobs to absorb Indonesian workers. Where, every year the Indonesian workforce reaches almost 2.9 million people. Meanwhile, the number of workers who need jobs is now nearly 15 million people.
The concrete solution to reducing the number of unemployed is by bringing in as much investment as possible and opening up the widest possible job opportunities, so that the labor force that is still unemployed can be maximally absorbed.
The Job Creation Law speeds up and simplifies the licensing process. The convoluted bureaucracy can also be overcome with the regulations contained in this Omnibus Law. Of course this is very helpful for business actors.
With the existence of the Job Creation Law, the government does not only support business actors in the context of job creation, but also to improve worker protection.
Sari Pramono as Chair of the Manpower, Vocational and Health Sector at the Central Executive Board (BPP) of the Indonesian Young Entrepreneurs Association (HIPMI), said the Job Creation Law would create more jobs. The Indonesian workforce will also have a decent income.
He considered that the Job Creation Law could create a conducive investment and business climate. Especially in the UMKM industry, so that they can compete at the global level.
Pramono said the ratification of the Ciptaker Law could reduce problems and obstacles for the industry. With the existence of the Omnibus Law as well, it is hoped that this regulation can attract investment in order to increase the capacity of the national MSME industry.
As an entrepreneur, he hopes that the Job Creation Law can always encourage the economy and investment through the creation and expansion of job opportunities. The dynamics of global economic change require quick and precise responses. Without structural reforms, economic growth will continue to slow down.
Apart from the Job Creation Law, so far, the government has issued various policies that support business actors, in the form of KUR and so on. It is intended that micro, small and medium enterprises (MSMEs) can level up and be more optimal.
Previously, the Expert Staff for Regulation, Law Enforcement and Economic Resilience of the Coordinating Ministry for Economic Affairs Elen Setiadi explained the importance of the Job Creation Law, one of which is to encourage economic transformation to spur faster economic growth, so that Indonesia can get out of the middle income trap so that Indonesia can get out of the trap of middle-income countries.
Of course, regulatory simplification is necessary so that licensing does not have to go through many “doors” just to start a business.
)* The author is a citizen living in Yogyakarta