By: Wahyu Pratama )*
The Covid-19 pandemic has made international trade activities and disrupted people’s economic activities, so that it can weaken global economic growth. This condition also affected the domestic economy.
The increase in health risks amid the Covid-19 pandemic did not affect investor confidence in Indonesia’s economic prospects. The Government’s efforts to control health risks through vaccination efforts and improving the public health system have increased investor confidence so that investment performance continues to improve amid the Covid-19 pandemic.
The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia said that the data from the Investment Coordinating Board (BKPM) stated that the total investment realization (PMA and PMDN) in the January 2021 period reached Rp 901 trillion, an increase of 9% compared to 2020 which was recorded at Rp 826.2. trillion. The increase in investment realization states that the Indonesian economy is still trusted by business actors to invest in Indonesia, even though the global economy is still difficult to accelerate due to the Covid-19 pandemic.
Seeing this condition, the Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia is very optimistic that Indonesia is able to achieve the investment target in 2022 of IDR 1,200 trillion, so that Indonesia will experience an economic recovery in a short time.
In addition to investment performance that continues to improve in line with the increase in positive sentiment from market players towards Indonesia’s economic prospects. Indonesia’s economic recovery is also driven by the implementation of the Job Creation Act, which can simplify the business licensing process through the Online Single Submission (OSS) System.
Improved investment performance accompanied by simplification of business licensing regulations can certainly create new business fields that can absorb the workforce and accelerate economic growth.
Deputy for Investment Climate Development at BKPM, Yuliot said, the implementation of Law No. 11 of 2020 concerning Job Creation (UU Ciptaker) had a positive impact on the licensing process, investment, and employment. This regulation will create equitable infrastructure development throughout Indonesia and increase investor confidence to invest.
Secretary to the Coordinating Minister for Economic Affairs, Susiwijono Moegiarso, said the Job Creation Law could increase investment and create jobs. The Coordinator for Economic Affairs projects that with the employment creation law, investment in 2025 will reach IDR 708.250 trillion, which will absorb 672,173 workers. To achieve this, one of the strategies undertaken is to develop Special Economic Zones (SEZs). Currently, there are 15 SEZs in Indonesia, with 11 operating and 4 under construction.
Professor of Law at Padjadjaran University Romli Atmasasmita assessed that Law Number 11 of 2020 concerning Job Creation can have a positive impact on Indonesia, because it can encourage economic development that can be felt by the general public.
Indonesia’s economic prospects in the future will continue to show positive performance in line with the implementation of the Job Creation Act, which can simplify business licensing regulations, so as to create new business fields that can absorb the workforce and accelerate economic growth.
Seeing this increasingly positive economic progress, all elements of Indonesian society need to support the Government’s efforts in implementing the Job Creation Law, because it is considered to be able to move the domestic economy towards a better direction for the welfare of its people.
)* The author is a Public Policy Observer
