The Law on Job Creation is a Solution to Increase Investment in the Covid-19 Pandemic Period
By : Indah Permatasari )*
The pandemic made the economy plummet, and the solution was the Job Creation Act. This law is not just a series of words, but if implemented it will be a panacea to overcome the threat of an economic crisis. Because this law will attract foreign investment, so it can make the business world rise again thanks to the stimulus funds from them.
During this year, the impact of the COVID-19 pandemic has not only been in the health sector, but also the economy. The financial condition of many people was in shambles, because many workers were fired and people’s purchasing power fell. How to handle it? Because we can no longer add debt to the IMF or other countries.
A powerful drug to overcome the impact of the pandemic on the economy is the Job Creation Law. Maybe there are people who are surprised because there is a law that was issued during the pandemic. But it is precisely this Law that will be the savior, so that we do not fall into the recession or the threat of economic crisis volume 2.
Deputy Chairperson of KADIN for the development of national entrepreneurs, Arsjad Rasjid, stated that creating a conducive investment climate. The reason is because there is an investment cluster in this law that will benefit many foreign investors , so they will want to enter and work together in Indonesia.
Arsjad added that the conducive investment climate occurred because regulations in Indonesia were streamlined, so that they did not overlap. So later the rules will be uniform and no longer confusing, or even ‘eating’ each other between articles or paragraphs in the Act.
This neatness attracts investors, because they tend to be more disciplined and happy when there is a notification that there is a change in the rules of the game. So they believe that the central and regional governments are equally disciplined in maintaining commitments and that there are no annoying incidents. Like people who want to make hot money on investors, sycophants, etc.
If investors enter, it will be regulated by the investment management agency . Then, money from investors will come in, and they will help implement infrastructure projects such as toll roads. So that this road will be completed quickly, facilitate mobility, and consequently the economy will be more advanced. Because the transportation is no longer stuck in traffic jams.
Congestion is not trivial because time is money . If you travel too long, you are afraid that the eggs that are removed will rot and other food ingredients are not fresh. This creates a negative domino effect.
But when there are investors who come in, there will be smooth projects. They will need workers and then new vacancies will be opened on the project. This will reduce the number of unemployed in Indonesia. So that automatically reduce the amount of poverty in Indonesia.
Investments can also be made by cooperating in the construction of new factories in Indonesia, because we have potential, namely a large population and tend to be consumptive. So they will be willing to queue in order to be able to buy new goods at the factory. Entrepreneurs will benefit, while the market will be excited again because the demand for goods also increases.
Why is investment important? Because this cooperation is mutually beneficial. We get capital injections, while foreign investors get profit sharing, as well as new brands and factories. So that this business will run smoothly and make both parties profit.
Foreign investment will enter Indonesia and many companies have registered to invest. Cooperation will be mutually beneficial, because they get the market while we get additional capital. Hopefully the job creation law is really implemented, so that foreign investors come in and want to collaborate with the government or local Indonesian entrepreneurs.
)* The author is a contributor to the Press Circle and Cikini Students
