By: Kadek Wardana )*
The government initiated a policy simplification of regulation through the Omnibus Law approach. The existence of the Omnibus Law is believed to be able to facilitate investment and accelerate economic transformation.
The Jokowi-Ma’ruf government is committed to continuing to advance the economic sector. This was done in line with the global economic slowdown that needs to be addressed immediately. One way is to be pursued through accelerating licensing by cutting overlapping regulations.
Efforts to simplify regulation have the support of the Indonesian Youth Caucus (KMI). KMI believes that the Omnibus Law is urgently needed to improve and improve the stagnant investment climate in Indonesia.
KMI Chairman Edi Homaidi said that in 2019 the growth rate of investment in Indonesia could be said to be stagnant, which was only at the lower limit of 5%. This is due to the difficulty of the investment and licensing climate in Indonesia.
Based on this reality, Omnibus Law is expected to attract investment to boost Indonesia’s economic growth. In addition, in 2024, Indonesia has aspirations to get out of the middle class income trap because the potential to get out of the middle class income trap is very large.
The same opinion is also agreed by the Indonesian Muslim Intellectuals Association (ICMI), giving its support so that the Omnibus Law can be immediately implemented, because if it is too late then the demographic bonus in Indonesia could result in a social tsunami.
Furthermore, ICMI also hopes that 2020 will be brighter so that the economy can be brighter and more vibrant. National economy is expected to grow above 5 percent, increase investment, open employment and avoid layoffs by distributing development to obtain opportunities for earning income.
Strengthening the investment climate through the Omnibus Law is the government’s effort to encourage economic growth. Investment is considered to be a dominant factor in the development of a country’s national production due to the availability of capital stock which is the main capital for business continuity.
In practice, investment is also a means and motivation in the implementation of economic development, especially in an effort to expand the use of labor in increasing production, so that economic development can be carried out. With economic development it is expected to increase income. So it can be said indirectly that by investing it can increase income.
Meanwhile, Indonesia is one of the developing countries. Therefore, as a developing country with a majority of productive age population, the role of investment in providing employment to encourage productive sectors is a focus that needs attention. With the opening of the investment faucet, Indonesia’s productive workforce will be absorbed to the fullest.
The application of the Omnibus Law is also believed to be more protective of workers. That is because, Omnibus Law also accommodates workers affected by layoffs or leaving the job market.
In the Employment Copyright Omnibus, workers who lose their livelihoods will be provided with these facilities as long as the company or the person concerned has become an active participant of the BPJS Employment.
Although this still applies at the central level, the Omnibus Law is planned to be implemented in all regions in order to create a harmonious regulation between the regional government and the central government. It also can uniform government policies to support the investment climate, simplify the bureaucracy and improve coordination between the center and the regions because it is regulated in the omnibus regulation policy.
In the end, Omnibus Law is one of the brave breakthroughs of the Government of Indonesia to realize the Vision of Forward Indonesia in 2045. This needs to get mutual support so that it can become the strength of the Indonesian nation in facing various global economic geostrategic changes. The courage to make a big leap needs to be done in order to encourage economic growth so that it can continue to compete with other countries.
)* The author is a social political observer