By: Satrio Pandu Jati)*
The Employment Creation Act will accelerate the national development process. The reason is because there is a cluster of ease of doing business, so that Indonesia’s economic development is much better. In addition, the Job Creation Law also facilitates the entry of investment into Indonesia because of investment clusters. There will be various developments as a result of cooperation with foreign investors.
President Jokowi’s government is trying to build Indonesia and rise from the negative effects of the pandemic. One way is to pass the Job Creation Act at the end of 2020. In this law, there are various clusters that are beneficial for the national development process. These include the investment cluster, ease of doing business, and the MSME cluster.
Secretary of the Task Force on the Job Creation Act, Arif Budimanta stated that the Job Creation Act is a breakthrough step, as a joint step to accelerate national development. Mainly by providing ease of doing business, ease of investment, so that it can absorb labor, create justice, and people’s welfare.
Investment facilities are provided through the Job Creation Law, because it is one way to provide a stimulus to national development. When there is ease of investment, for example with online single submission and risk-based licensing, investors will want to enter Indonesia. They are interested in investing because the rules are relatively easy.
If there are many investors, they will build various factories, thereby automatically reducing unemployment in Indonesia. Therefore, the investment cluster in the Job Creation Act is very important, because it reduces social problems that occur when there is too much unemployment. People who already have jobs will be enthusiastic about improving their performance, and Indonesia’s economic development will get better.
In addition, foreign investors accelerate national development because they invest in toll roads in Indonesia. In this way, many toll roads are made, because the costs are not 100% borne by the government. Meanwhile, there will be a mutually beneficial distribution of results.
Toll roads are important infrastructure because they facilitate travel and reduce congestion. If the infrastructure in Indonesia is good, the development is also good. The reason is because the delivery of goods becomes smoother, and people’s mobility is also getting faster.
Arif continued, the Job Creation Law is important to accelerate the process of national economic development. The reason is because this law supports economic actors, especially MSME business owners. This means that in the Employment Creation Act there is a cluster of MSMEs to facilitate their business.
MSMEs must be assisted because they are the backbone of the country’s economy, and 90% of businesses in Indonesia are small and medium-sized. If MSMEs are assisted, the country’s economic development will also progress. Indonesia can survive the threat of a global recession which is predicted to occur in 2023.
National economic development should be encouraged because Indonesia is growing after being affected by the Covid-19 pandemic. Therefore, the government devised a strategy to be able to carry out mass development, without having to owe the IMF. One way is the Job Creation Act as a legal umbrella that regulates the people and stimulates national development.
Meanwhile, SOE Minister Erick Tohir stated that the Job Creation Law would break Indonesia’s economic stagnation. This law was born to stimulate the economy during and after the Covid-19 pandemic. After this law was passed, the government increased investment through the establishment of an Investment Management Agency in 2020.
Investment Management Agency is an agency authorized by the government to manage the investment of the central government. If there is an Investment Management Institution, the public need not worry, because development will run smoothly thanks to the supervision and management of this institution.
Through the Investment Management Agency, the Government will accelerate the development of various strategic projects. These include the construction of toll roads, airports, ports, health care, and potential sectors such as tourism and technology. With professional management, there will be improvements for the Indonesian economy.
National development projects are encouraged and the Investment Management Institute is working hard so that the investment proceeds are used to develop Indonesia as well as possible. Infrastructure development, such as toll roads, airports, and ports, is an important concern. The reason is that it will facilitate community mobility.
In addition, if the infrastructure is good then the development is also good, especially outside Java. For example, in Papua or other areas of Eastern Indonesia, physical construction will be easier because there are representative roads, because trucks and cars can pass. Therefore, infrastructure is the first goal of development during the administration of President Jokowi.
The government accelerates the national development process with a precise strategy, namely to ratify the Job Creation Law and apply it. In this law there are clusters that stimulate development, for example the MSME cluster and the investment cluster. With the implementation of the Job Creation Law, development will be carried out throughout Indonesia and this nation can rise from the effects of the Covid-19 pandemic.
)* The author is a contributor to Pertiwi Institute
