Job Creation Law Maintains Economic Recovery Trend
By : Deka Prawira )*
The Covid-19 pandemic had made the economy in Indonesia sluggish. But now is the time for economic recovery to be boosted so that the turnover of money is not stagnant like during social restrictions. With the existence of the Job Creation Law, the regulation seems to be a generator of the national economy, where entrepreneurs are facilitated with licensing so that the faster the workforce is absorbed.
In the midst of the current global challenges, it is certainly important to maintain optimism for the national economic recovery, in line with improving indicators in various sectors.
One of the sectors that showed significant improvement was consumption and investment, which was marked by the strengthening of people’s purchasing power, maintained indicators of the consumer confidence index (CCI) and retail sales, maintained manufacturing PMI at the expansion level, as well as banking loans that grew above 10% since June 2022.
Coordinating Minister for Economic Affairs, Airlangga Hartarto in the 100th Anniversary Webinar Eka Tjipta Widjaja Forum Dialog: Economic Outlook 2023, said that Indonesia was able to grow above 5% over the last 3 quarters thanks to the cooperation of all parties.
Positive achievements were also shown by the external sector, which was marked by a surplus in the current account and trade balance, as well as maintained foreign exchange reserves and debt ratios at a safe level.
The issuance of the Job Creation Law, apparently investment will increase, which can later be a trigger for increasing other economic indicators.
The Job Creation Law also has a partiality to MSME actors, especially since MSME actors do not need to mess around with various bureaucracies that are dizzying when they want to take care of licensing.
Airlangga Hartarto as the Coordinating Minister for the Economy stated that the Job Creation Law not only helps large-value investments, the law also helps micro, small and medium entrepreneurs. This is because the target of the Job Creation Law is to empower MSME business actors, so that the contribution of MSMEs to GDP will increase to 65%.
Assistance from the government in the form of the Job Creation Law is very grateful for small and medium entrepreneurs. Because thanks to the MSME cluster, there is an ease in obtaining a business license. In the new regulation, MSMEs are included in low-risk businesses. So it only requires a NIB (Business Permit Number), without having to take care of a complicated and expensive nuisance permit (HO).
If nib has been pocketed by MSME actors, it means that the MSME has been considered a legal business. So that it is possible for them to export their products.
It should be noted that the majority of entrepreneurs in Indonesia are small and medium level. So this sector needs attention from the government.
When MSMEs are assisted, of course, the wheels of the economy will be able to run again. Because MSME business licenses can make banks and borrow money trust them to provide capital loans. With the ease of getting the loan, of course, the business will be able to be enlarged and get benefits.
The Job Creation Law is designed to help MSME entrepreneurs, through many regulatory changes. The bureaucracy can be trimmed so that the business license only takes 7 days. In addition, MSME entrepreneurs only need NIB as a business legality.
By having a Business Identification Number (NIB), MSMEs can carry out all business activities including those that require business licenses, distribution permits, Indonesian national standards (SNI) to halal product certificates.
Meanwhile, assistance is also provided in the form of legal protection if MSMEs stumble into trouble. This policy was made looking at how MSMEs do not have enough fees to pay professional lawyers.
The government also revealed that the provision of support to MSMEs through synergy between the central, regional and shareholder governments in the form of providing management assistance, budget, human resources to facilities and infrastructure.
With this new regulation, MSMEs that usually experience difficulties due to lack of experience funds to access to management knowledge will be much easier.
Not only that, entrepreneurs engaged in MSMEs also get the convenience of exporting their products, the government will provide various conveniences ranging from simplification of tax administration, income tax incentives to applying for business licenses at no cost.
The Job Creation Law also stipulates the ease of developing MSMEs, including, MSME business activities can be a guarantee to access business financing loans. Not only that, the intellectual property rights (IPR) registration process is also said to be facilitated and simplified.
As for expanding the market and promoting their products, MSMEs also get greater opportunities in toll road rest areas and public infrastructure such as terminals, airports, ports, train stations and others.
On the other hand, Bank Indonesia is still holding back the increase in the benchmark interest rate at the level of 3.5 percent. This of course will have an impact on the conduciveness of business actors.
The economic recovery can be marked by the large number of buying and selling activities and national economic growth that occurred with the trade balance surplus in the second quarter of 2022 of 15.50 billion US dollars.
)* The author is a contributor to the Pertiwi Institute