Arms Employment Law Faces Global Uncertainty
By: Andi Kurniawan)*
The Job Creation Act is a powerful weapon in the face of global uncertainty. With this regulation, investment can be made easier which has a positive impact on the stability of the national economy.
At the end of 2020, the government promulgated the Job Creation Law. This law is very revolutionary because it has various clusters in it, which are beneficial for all the people. The government made the Job Creation Law as a legal umbrella so that people can run smoothly in business, investment, and others.
The Job Creation Act is brilliant because it was born for the benefit of the people. Especially in the face of global uncertainty. Expert Staff to the Minister of Finance for State Revenue, Oza Olavia, stated that the world continues to develop so that each country competes to attract investment. Especially in the midst of a global crisis.
The Job Creation Law contains regulatory aspects related to the ease and protection of doing business, as well as the empowerment of cooperatives and MSMEs. The government and the Indonesian House of Representatives passed the Job Creation Law to improve the investment climate. There is also protection for the workers.
When there is ease of investment in the Job Creation Act, it is very good because the number of investors will increase. If many foreign investors enter Indonesia, the country’s foreign exchange will increase, so Indonesia will not be affected by global uncertainty. The economy has also remained stable during the pandemic.
Foreign exchange is very important to be kept stable and not to minus. If in the past foreign exchange was obtained from the tourism sector, then during the pandemic there were many bans on international flights from certain countries, then a replacement must be sought. Foreign exchange can still be obtained through the investment sector, and remains profitable because the agreement must provide profit for both parties.
The presence of investors is also awaited by local entrepreneurs because funds from foreign investors will be injected, so that their business can grow rapidly. When the business grows, the businessman can spread his wings, thus reaching the global market. If they have exported their products, they will be in demand because they are proven to be of international quality.
Oza added that the Job Creation Law attracts investors because there is clear legal protection for them. If there are many foreign investors, it will increase state tax revenue.
If tax revenue increases, Indonesia will remain stable, because the government has funds to build public facilities, health facilities, etc. People’s lives will be better. This is a positive domino effect that is expected by the government, from the existence of the Job Creation Law which increases foreign investors and then increases the amount of taxes, and the results are used by the people of Indonesia.
Taxes are also very important because this is where the capital comes from to build various infrastructures in Indonesia. President Jokowi is very aggressive in building infrastructure throughout Indonesia, so that this country is more advanced. Infrastructure will facilitate community mobility.
In addition, infrastructure is also an important consideration for investors to enter Indonesia. They want to invest their capital on the condition that the roads and infrastructure must be good. They are also satisfied because the quality of infrastructure outside Java is as good as in Java.
From this infrastructure, the number of foreign investors increases, and more and more capital injections from them. This is the positive effect of a law, which can increase investors and improve Indonesia’s infrastructure.
The more investors, the better because it is an indicator for the progress of a country. Indonesia will be ready to skyrocket, from a developing country to a developed country. Indonesia is also considered modern and on par with other developed countries, and is respected in the global market.
Managing Director of a tire company, Mukiat Sutikno, stated that his Japanese parent company is interested in investing in Indonesia. They agreed to the Job Creation Act and then planned to build a factory in this country.
In a sense, the Job Creation Law has become a magnet for many foreign companies to open factories in Indonesia. Although the pandemic made the global economic situation less stable, they dared to invest. The reason is because there is a clear legal umbrella, namely the Investment Cluster Job Creation Act.
Moreover, there is also a guarantee from President Jokowi regarding the security of investment in Indonesia. Foreign investors will want to enter and do business in this country because there is a direct guarantee from the president. They feel safe because the guarantee is plus there is a Job Creation Law which contains articles that are profitable for the investment world.
The Job Creation Act is a very powerful weapon to deal with global uncertainty. Even though it’s still a pandemic and there was a global crisis, it doesn’t have much effect in Indonesia. The reason is because there are many investors who come in and build factories in the country