The ratification of the Job Creation Law is a Positive Effort by President Jokowi to Realize Economic Reform.
By: Adam Akbar )*
The ratification of the Job Creation Law (Job Creation Law) in 2020 was one of President Jokowi’s major initiatives in the economic reform of Indonesia. This law not only consolidates various regulations scattered across many previous laws, but also serves as a foundation for creating a more conducive investment climate and supporting sustainable economic growth.
One of the main achievements of the Job Creation Law, as proclaimed by President Jokowi, is the integration and simplification of regulations that were previously scattered across various laws. By using the Omnibus Law approach, this law consolidates 76 different regulations into a single legal framework. The main goal is to reduce bureaucratic complexity and simplify the business licensing process. This is expected to reduce the administrative burden for business actors, especially for Micro, Small, and Medium Enterprises (MSMEs), as well as to enhance the efficiency of the investment process.
The Job Creation Law is designed to provide a significant boost to the investment climate in this country by addressing various obstacles that have long hindered business operations and investments. One important step taken by the government to ensure the smooth implementation of the Job Creation Law is the issuance of implementing regulations that detail the various norms and rules outlined in the law.
Trisasongko Widianto, the Director General of Construction Development at the Ministry of Public Works and Public Housing, explained that this Implementing Regulation is intended to ensure that all provisions in the Job Creation Law can be effectively implemented. This Implementing Regulation provides more comprehensive details regarding various norms and rules within the Job Creation Law. This is important to ensure that the operational implementation of the established provisions can proceed smoothly and meet expectations.
With the launch of the Job Creation Law along with its implementing regulations, the main goal is to carry out structural reforms that can accelerate economic transformation in Indonesia. This reform is expected to simplify the business process and attract more investment by streamlining and aligning regulations and licensing procedures. This effort aims to avoid various irregularities in the licensing process, provide clear legal certainty, and offer convenience for business actors.
The structural reforms brought about by the Job Creation Law encompass several important aspects. First, the provision of more and better-quality jobs is one of the main priorities. Second, this law facilitates the community, especially micro and small business actors, to start new ventures with a simpler and faster licensing process. Among these are the simplification of the licensing process, reduction of bureaucracy, and ease of establishing business entities. Thirdly, the prevention and eradication of corruption is an integral part of this reform, aimed at creating a more transparent and fair business environment.
This reform provides significant encouragement for entrepreneurs by offering a more accessible platform to start and manage businesses. Additionally, this law also better regulates environmental protection, ensuring that business activities continue to meet important environmental standards without burdening entrepreneurs with unnecessary regulations.
Trisasongko Widianto emphasizes that the Job Creation Law is expected to not only have a positive impact on a macro scale but also to provide significant benefits to the construction services sector. The ease of business licensing, strengthening the role of the community in the construction services sector, and innovation in business processes are expected to enhance the efficiency and quality of the construction sector, which is a crucial component in infrastructure development in Indonesia. This is expected to help drive more dynamic and sustainable economic growth.
With the ratification of the Job Creation Law, it also aims to enhance legal certainty in doing business. Legal certainty is one of the key factors that can attract investors, both domestic and international. With clear regulations and a more transparent licensing system, it is hoped that there will be an increase in investor confidence to invest their capital in Indonesia. This legal certainty is not only important for attracting new investments but also for ensuring the sustainability of existing investments.
Member of the Indonesian House of Representatives Commission V, Sudewo, also emphasized the urgency of the Job Creation Law in terms of licensing management. According to Sudewo, one of the main objectives of this law is to enhance the integration, efficiency, and effectiveness of licensing management. The effectiveness of the implementation of this Regulation requires collaboration and active participation from all relevant parties. This includes the Central Government and the Regional Government, both at the provincial and district/city levels. Sudewo added that a solid collaboration and the active role of all parties are crucial to ensure that all provisions in the Job Creation Law can be implemented effectively and provide maximum benefits for the community and the Indonesian economy as a whole.
With these steps, it is hoped that the Job Creation Law and its implementing regulations can bring about significant positive changes. If implemented well, the Job Creation Law can be a driver for Indonesia’s economic development, enhance investment attractiveness, and create more job opportunities, thereby supporting comprehensive and sustainable economic growth.
)* Open University Management Students
