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Breakthrough Job Creation Law Increases Investment


By: Rizki Kurnia)*

Investment has become one of the components to improve the economy in Indonesia, so there is a need for regulations governing the process.

The government continues to strive to improve investment regulations in Indonesia. The regulation in question is the job creation law. In this regard, the Ministry of Investment / Investment Coordinating Board (BKPM) believes that the investment realization target of Rp. 1,200 trillion can be achieved by 2022. One of the breakthroughs that supports this target is the implementation of the Job Creation Law or the Ciptaker Law.

The Director of Promotion for the Southeast Asia, New Zealand and Pacific Region of the Ministry of Investment, Saribua Siahaan, admitted that his party was optimistic that the target could be achieved. In addition, the government also needs to make regulations through the Job Creation Act.

Saribua said there are several things the government wants to convey through the Job Creation Act. First, showing the business world that the government has made efforts to improve the ease of doing business.

Second, Efforts to provide clean and clear investment facilities. Especially related to land issues. So far, many investment activities have been hampered by efforts to provide land. The third is through the Ciptaker Law, the government streamlines government administration so that efforts to take care of business licenses are not long-winded.

Saribua explained that the Ciptaker Law is a showcase for Indonesia, that if investors want to invest in Indonesia, they only need to bring capital and technology, all permits from the Ministry of Investment/BKPM will handle it.

From the Job Creation Law, of course, harmonizing existing policies at the center and regions, as well as overcoming overlapping problems, moreover this Law will cut down articles that are considered ineffective.

Professor of IPB Prof. Dr.Ir. Yanto Santosa, DEA said, when investment increases, employment opportunities will also increase, this is the real purpose of the Job Creation Act, for the welfare of the community.

In order to implement the Job Creation Law in accordance with the government’s expectations, for example simplification of licensing regulations, encouraging investment ease and increasing employment opportunities, a number of conditions must be met.

One of them is that business actors must be used as equal partners, not as suspected or wary parties. With this status, the form of interaction or relationship between the government and entrepreneurs will be mutually helpful and needy.

Previously, the Head of Employment, Vocational and Health Affairs of the Central Governing Body (BPP) of the Indonesian Young Entrepreneurs Association (HIPMI), Sari Pramono said the Job Creation Law would create more jobs. The Indonesian workforce will also have a decent income. The Job Creation Law can also create a conducive investment and business climate. Especially in the MSME industry, so that they can compete at the global level.

Pramono also added that the ratification of the Copyright Act could reduce problems and obstacles for the industry. With the Omnibus Law, it is hoped that this regulation can also attract investment in order to increase the capacity of the national MSME industry.

With the ease of obtaining business permits, it is hoped that the investment climate in Indonesia will improve, as well as attract local and foreign investors to invest in Indonesia. If the investment rate increases, of course, there will be more job opportunities in various sectors, so the number of unemployed will decrease.

On the other hand, the job creation law was indeed drafted with the aim of prospering and helping job seekers in Indonesia. Especially in the midst of a pandemic situation where the economy also had a chance to stumble. The law is expected to open about 46 million job vacancies once it is passed. Of course, with the arrangement of the Omnibus Law that has been designed in such a way, of course this is not impossible.

Deputy for Investment Cooperation at the Ministry of Investment/BKPM Riyatno said the progress of investment realization reached Rp 826.3 trillion in 2020. This reached 101.1 percent of the target of Rp 817.2 trillion. From this realization, what is interesting is that domestic investment (PMDN) shows a balance with foreign investment (PMA). Based on data from BKPM, PMDN reached 50.5 percent. While investing in the first. While investment in Java, the share is 49.5 percent.

With the employment creation law, investment in Indonesia has increased. In 2021, the realization of the investment amounted to 900 trillion rupiah and the 2022 target to increase to 1,200 trillion rupiah. This is certainly very good because the more investment, the more foreign exchange that enters the country’s pockets.

This is proof that the Job Creation Law is able to increase business and investment in Indonesia. So that its existence needs to be maintained so that investments that enter

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