By: Zakaria )*
The Job Creation Act is the government’s main ‘weapon’ in attracting investors. The reason is because this law has an investment cluster and makes it easier for foreign investors to do business in Indonesia. The Job Creation Act is a stimulus for big investors, because they get security guarantees in investing in this country .
When the pandemic is not over, the government is looking for a new strategy, so that the effects are not too pronounced, including in the economic field. Currently, the global economy is not very stable. But that does not mean Indonesia is passive. In fact, this situation has become an impetus to find ways to keep the Indonesian economy healthy, one of which is through the implementation of the Job Creation Law.
The Job Creation Act is the government’s surefire way to get up in the economy and investment sector, because this law has an investment cluster. With various conveniences in managing investment permits, it is hoped that it will be a stimulus for investors. Not only small-scale investors but also big-name investors who dare to inject large funds in Indonesia.
Deputy Minister of Finance Suahasil Nazara stated that the Indonesia Investment Authority (INA) would stimulate large investments in Indonesia. The details will be monitored continuously. This means that INA manages investment and builds Indonesia in a sustainable manner. Besides INA, another stimulus in the investment world is the Job Creation Act, which has investment clusters and makes it easier for foreign investors to enter.
INA is Indonesia’s sovereign wealth fund and its job is to manage investment funds until they are actually profitable. Investor funds will be managed properly and carefully so that they are profitable continuously. By being held by a managing institution, the investment funds can be used properly, without any other interests.
Initially, INA was given a capital of 5 million dollars by the government. Then INA got another 25 million dollars from investment partners. It means that the government’s strategy is successful because foreign investors dare to inject funds of up to millions of US dollars in Indonesia. The reason is because they believe in INA’s performance.
INA is an institution that cannot be interfered with by political or other interests, thus making investors more confident to do business in Indonesia. INA is considered very good at work because it is supervised and can show good performance.
In addition to the existence of INA, investors trust Indonesia thanks to the Job Creation Law. The investment cluster in it becomes a guarantee and legal umbrella, which makes investments run smoothly. When going to take care of licensing, it will be faster and more practical because it is through an online single submission , and it takes less than 2 weeks to complete (if it meets administrative requirements, etc.).
The Job Creation Act is a blessing because investors enter Indonesia and the investment value is very large, up to millions of US dollars. Foreign investors such as Elon Musk will also build electric car battery factories. A huge investment from Elon Musk is highly expected because the value must be very high and he is one of the richest people in the world.
Meanwhile, Investment Minister Bahlil Lahadalia, stated that the Job Creation Law is an instrument to encourage investment. Therefore, there should be no party who is naughty and does not want to implement the articles in this law. Since it was ratified at the end of 2020, the Job Creation Law must be applied throughout Indonesia.
If there are parties who do not implement the Job Creation Act, their credibility is questionable. He can also be reported for not wanting to apply the law, even though it is clear that President Jokowi has ordered all parties to comply.
Minister Bahlil continued, thanks to the Job Creation Act, investment realization continues to grow. In the first half of 2022, the realization of investment amounted to 584 trillion rupiah. The nominal is 50% larger than the previous period. In a sense, the number of investment realizations is very good because the government has succeeded in ‘luring’ big investors thanks to this law.
The Job Creation Law can attract the attention of big investors because there is a guarantee of ease of doing business and licensing, which is contained in the investment cluster. Investors will not be faced with a long and tedious bureaucracy when it comes to obtaining a business license. However, the bureaucracy has been cut down thanks to the Job Creation Law, and at the same time minimizes the chances of corruption and extortion when processing permits.
Investment is needed to strengthen the Indonesian economy, because the investment returns can be processed for infrastructure development and others. Therefore, the government is trying to get investors, especially the big ones, to enter and do business in Indonesia. One way is to ratify and apply the Job Creation Act.
)* The author is a contributor to the Nusantara Reading Room
