The existence of the Job Creation Law is a panacea for hyper-regulatory conditions that have been hampering the business world. The existence of the Act is believed to be able to create a conducive business climate and quality investment.
The inauguration of the Omnibus Law on Employment seems to have surprised the public, this is of course natural because in Indonesia, the concept of omnibus law is a new thing. This is the first time Indonesia has a legal concept that summarizes laws from various clusters.
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However, we need to know that the Omnibus Law also functions to create a quality business and investment climate. The reason is because this law serves as a legal basis for investors in Indonesia.
Omnibus law is also able to simplify overlapping regulations. Even though there are protests from some parties, the government will still enforce the policy, because the omnibus law scheme is seen as a way out of overlapping rules and complicated regulations in Indonesia. In addition, the omnibus law will also be the legal umbrella for all applicable regulations. The Omnibus Law allows trimming of overlapping regulations, so that the investment or investment process can be carried out without a complicated process.
When investors enter Indonesia, the business climate will automatically become more vibrant. This is due to investment which of course brings in much more funds and they will start various projects or open factories in Indonesia.
The arrival of investors to Indonesia will of course be a breath of fresh air for Micro, Small and Medium Enterprises (MSMEs), so that their business can survive the abyss of collapse. Indonesian President Joko Widodo has also invited investors not to hesitate in investing their capital, because the situation in Indonesia is conducive. Especially with the Omnibus Law which protects investors.
The investment climate in Indonesia has also become more dynamic thanks to many investors who are already preparing to enter. They believe in the Indonesian government because it is always committed to protecting investors. This is proven in the investment cluster in the Omnibus Law on Job Creation, which makes it easy for investment requirements and permits are also fast because they can be managed online.
For information, Indonesia has actually implemented an omnibus law, such as in Law No. 9 of 2017 concerning the stipulation of a government regulation in lieu of law (Perppu) No. 1 of 2017 concerning access to information for tax purposes.
This law abolishes and declares no banking, insurance and capital market secrecy provisions related to tax access previously regulated in the Banking Law, Sharia Banking Law, Insurance Law and Commodity Futures Trading Law. At the international level, many countries have implemented the Omnibus law, such as Australia, Vietnam and the United States.
On a different occasion, Fadjroel Rachman, as the spokesman for the President, assessed that the Omnibus Law, which is currently being discussed by the government and the DPR, has received support from entrepreneurs in various fields.
Tauvik Muhammad, as the manager of the ILO Jakarta skills development program, said that Covid-19 could increase unemployment in Indonesia, which even before the pandemic reached 20.4 percent, which is quite high compared to the global average.
He said Indonesia needed policy integration. Because on the one hand, the Indonesian workforce is dominated by informal sector workers with low education, but the fact is that the Indonesian people are integrated in the free market with economic digitization and industrial automation.
The Secretary General (Secretary General) of the Ministry of Finance, Hadiyanto, said that the government would follow the follow-up that had been set by the DPR RI. According to him, the financial omnibus law can be a solution to various problems in the financial sector for now and in the future. Hadiyanto said there is an urgency for a more comprehensive financial sector regulation, in line with the needs and challenges faced in the financial sector and capital market.
In the omnibus law, the government wants to harmonize 1,244 articles from 79 laws into a bill that was originally called Job Creation. So there is no more overlapping regulations that seem complicated.
Simplification of regulations is one of the magnets for investors to invest in Indonesia. So that with the investment that comes, will participate in absorbing labor and reducing the number of unemployed in Indonesia.
