The performance achievements of President Jokowi encourage an investment climate that boosts the economy with the Job Creation Law.
By: Anita Permata Sari
Since being inaugurated as the President of the Republic of Indonesia, Joko Widodo (Jokowi) has consistently prioritized economic growth in every policy he has implemented.
One of the significant breakthroughs in his administration is the enactment of the Job Creation Law (Job Creation Law), also known as the Omnibus Law, which is designed to create a more competitive and sustainable investment climate, while also serving as a catalyst for national economic growth.
The Job Creation Law brings significant changes to the business and investment landscape in Indonesia. Before this law was implemented, the regulations governing business licensing and investment were often too complicated and burdensome for business operators, especially foreign investors.
The lengthy licensing process, convoluted bureaucracy, and overlapping regulations often make Indonesia struggle to compete with other countries in attracting investment. Through the Job Creation Law, President Jokowi has succeeded in simplifying various regulations, paving the way for a faster and easier flow of investment.
One of the main aspects regulated in the Job Creation Law is the simplification of the business licensing process through a risk-based licensing system. With this approach, businesses deemed to be low-risk can obtain business permits more quickly and without going through complicated procedures.
This policy encourages the growth of strategic economic sectors, including manufacturing, infrastructure, and the digital economy, which are the backbone of Indonesia’s economy in the modern era.
In the midst of high economic uncertainty, even on a global scale, the government has indeed taken very appropriate anticipatory steps to address this issue while also realizing the assurance of legal certainty with the enactment of the Job Creation Law.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the role of the Job Creation Law is indeed very important, particularly in relation to investment, as this policy enables Indonesia to create a more conducive investment climate while also encouraging job creation.
Meanwhile, Economic Observer Dendi Ramdani stated that the current Job Creation Law can enhance competitiveness and push Indonesia towards becoming a high-income country.
Through this set of regulations, Indonesia is determined to become a more prosperous country and to enhance the welfare of its people, as it also addresses labor market flexibility.
In line with that, the Professor at Gadjah Mada University (UGM), Prof. Gunawan Sumodiningrat, also stated that the Job Creation Law indeed has many advantages, including the enhancement of economic competitiveness, flexibility for workers and entrepreneurs, ease of doing business, and the empowerment of rural and regional economies.
In addition to simplifying licensing, the Job Creation Law also strengthens investment protection by providing clearer legal certainty to investors. This is reflected in the reduction of investment barriers in sectors that were previously difficult to access, such as mining, energy, and forestry.
President Jokowi is actively encouraging the revision of regulations that limit investment in those sectors, thereby opening up broader opportunities for both domestic and foreign investment. With better legal certainty, investor confidence in Indonesia’s economic prospects is increasing, as reflected in the influx of significant investments in recent years.
This positive change is also reflected in the investment realization data, which continues to show an increase in investments, largely due to the positive impact of the Job Creation Law, which has successfully created a more conducive and competitive business climate.
President Jokowi has also made the Job Creation Law an important instrument in enhancing the competitiveness of the Indonesian workforce. Through the labor reforms outlined in the Job Creation Law, companies are given more flexibility in recruiting and managing their workforce.
This step provides dual benefits: on one hand, companies can operate more efficiently and adaptively, while on the other hand, new jobs are created, which ultimately helps to reduce unemployment rates.
In addition, the Job Creation Law also encourages more equitable infrastructure development, particularly outside of Java Island. With the ease of permits and investments provided, various infrastructure projects such as toll roads, ports, and airports can be realized more quickly. These projects not only open up new economic opportunities but also reduce development disparities between regions.
In a global context, the economic reforms triggered by the Job Creation Law have increased Indonesia’s attractiveness in the eyes of international business actors. Indonesia is now seen as a country with stable growth prospects and increasingly investment-friendly regulations. This serves as concrete evidence of President Jokowi’s efforts to steer Indonesia towards a more advanced and highly competitive economy on the global stage.
With these various achievements, the Job Creation Law has become one of the greatest accomplishments of President Jokowi’s leadership in promoting investment as the main driver of economic growth. This policy has successfully created a strong foundation for a more inclusive and dynamic future for Indonesia’s economy.
*) Economic and Business Observer at Bahana Securities
