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Work Creation Law Helps SMEs

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By: Dimas Robiansyah) *

The Job Creation Law is an effective solution in bypassing regulations that impede investment. With this legal product, MSMEs and other people’s industries are expected to develop and strengthen the nation’s economy during the Covid-19 pandemic.

The Game Changer of the Job Creation Law (Ciptaker) is considered to have started kicking off, after the implementing regulations in the form of 51 PP and Perpres were completed in December to February. The Investment Management Institution (LPI), which was born from the omnibus law, has been formed with a government capital deposit of IDR 75 trillion, which is projected to attract IDR 225 trillion foreign and domestic investment for the first phase.

Coordinating Minister for the Economy Airlangga Hartarto ensured that the Job Creation Law would not only encourage investment in the jumbo sector, but also micro, small and medium enterprises (MSMEs) in the country.

Likewise, the Executive Director of Indef Tauhid Ahmad assessed that from the PP and Perpres implementing the Ciptaker Law, the most effective and most positive effect on economic recovery are the regulations regarding licensing, especially for MSMEs, as well as decision making related to land issues.

The thing that hinders MSMEs is regulation, with the existence of the Employment Creation Law, the matter of regulation has been made easier. In addition, MSMEs also need support in terms of implementing regulations for empowerment, access to markets and financing. Implementation to guard this matter of course requires consistency from the government, because it requires government budget allocations, as well as banking support in terms of credit.

On the other hand, there are also those that will become stumbling blocks in implementation, for example related to land. Tauhid explained, if the local government does not immediately prepare decisions related to spatial planning and so on, the handling will be taken over by the central government. If that happens, the implication will be rejection in the field, because the regions are not involved in the process. So, the point is a problem of execution, because the Detailed Urban Spatial Plan (RDTK) is a requirement for mandatory placement and location where it is allowed to be used.

He also explained that the cost of making RDTK was not cheap. In addition, decisions regarding land use to be enacted in regional regulations that need to be discussed at the legislative level generally take time.

Tauhid said, there are also challenges in the Job Creation Law regarding labor. According to him, there are still 7 points that need to be fixed immediately. So that later what needs to be made easier is not only about wages, but other matters related to employment also need to be resolved first. For example, a derivative of the Job Creation Law, there is a Perpres with many attachments, the first attachment relates to facilities or incentives provided by the government, the second relates to MSMEs, and the third is certain requirements. However, what will become a problem are certain requirements, because it requires preparation, it is not enough just by using a Perpres.

According to Tauhid, the law also requires technical instructions (juknis) and implementation instructions (juklak). This means that there must still be a ministerial regulation (candy) and must wait until the candy is issued.

Previously, Member of Commission VI of the DPR RI, Darmadi Durianto, ensured that the Job Creation Law which had been passed by the DPR RI would provide many conveniences and benefits for Micro, Small and Medium Enterprises (MSMEs) entrepreneurs.

The Job Creation Law which was passed on October 5, 2021 turned out to be able to provide the legal aspects of MSMEs, where so far it has no legal standing or legal basis for MSMEs at low cost and without a notary certificate.

The enactment of the Job Creation Law is of course expected to be able to develop MSMEs and this will be realized in regulations that require a minimum of 30 percent public infrastructure facilities for promotion places, business places and the development of micro and small businesses.

Darmadi assessed that the Ciptaker Law has provided many protections and opportunities for strengthening MSMEs in Indonesia, especially in UMK activities.

The Job Creation Law also makes it possible for MSME actors to absorb more labor and make the formation of cooperatives easier. Of course this will reduce the number of unemployed and strengthen the micro scale economy.

The activity of MSMEs in Indonesia deserves attention, because with the existence of MSMEs, the wheels of the economy of a region will rotate so that it will have a multiplier effect on many sectors that are related to the production process of MSMEs.

) * The author is a contributor to the Cikini Press Circle and Students

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