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Job Creation Law Simplifies Regulations Attracting Quality Investment

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By: Pratiwi Putri )*

The government has initiated the birth of the Job Creation Act (UU Ciptaker) in order to provide legal guarantees to investors. This existence has received appreciation from many parties because it is able to simplify regulations while at the same time attracting quality investment.

The government continues to implement innovations to encourage ease of investment in Indonesia. One way is to implement the Job Creation Act, which is known as the Universal Sweeping Law because it is able to reduce the bureaucracy that has been convoluted and hampers investment. In addition, the regulation also has a number of positive contributions not only for entrepreneurs, but also for workers.

We can discuss several points regarding this convenience. Regarding the application of licensing itself, what was previously a license base is now changed to risk based or risk based. This is clearly in order to maintain a balance between the environment as well, so entrepreneurs are obliged to consider how or what possible risks will be created if they continue to open their businesses.

Still related to the risks that might be caused, the Job Creation Law also stipulates how to integrate business with environmental approvals, especially for those who have risks, an Environmental Impact Analysis (AMDAL) study must be carried out first. Do not forget also how the feasibility of the building or building used as a place of business must also follow the standards that have been set regarding the technicalities.

Then the next point is about the suitability of the layout. Not only considering the risk aspect, but also considering the suitability of the spatial layout. The government will accommodate the integration of the spatial plan whether the opened business is on land, coast or sea. In addition, to further accelerate and make the determination of spatial management more efficient, a One Map Policy will be held.

As with all the policies that have been set, Elen Setiadi as Expert Staff for Regulation, Law Enforcement, and Economic Resilience at the Coordinating Ministry for Economic Affairs stated that the implementation of the Job Creation Law will make it easier for business actors to obtain permits. For him, all these regulations make it possible for the Regional Government to not issue regulations that are contrary to the Central Government.

Not only business licensing is facilitated, but all registered business activities will also have a strong legal basis as well. Especially with the equalization of requirements throughout Indonesia, so it will be easier to understand and apply. Another facility that will be provided by the Government to business actors is migration, which is used as a visit visa in order to be able to carry out pre-investment activities. It should be noted that previously there were no clear rules regarding this guarantee.

Even the visa guarantee provided by the Government can also be likened to a deposit. When compared to the previous regulation which required it to be in the form of a person or entity, it is considered less efficient and effective for the acceleration and ease of doing business. Not only that, the Government will also provide convenience regarding the granting of permanent residence permits for second homes if the entrepreneur wants to go abroad. All of these new policies are certainly expected to be able to accelerate the country’s economic growth.

As the young generation who are still in their productive age, of course, we must try to make every effort to facilitate the government’s policies and regulations in facilitating business licenses. Because so far there are still complaints from the community, especially in the regions regarding the difficulty of getting a business permit. This could be due to the existence of too many regulations applied by the local government. Therefore, now the various regulations have been simplified from type to procedure.

Moreover, if we compare how the business licensing process in other countries such as New Zealand only takes a few hours, in Malaysia it also only takes a few days, but in Indonesia so far only to open a business license has to wait for months. Therefore, the long and convoluted process that the public has been complaining about regarding business permits has now been resolved with the implementation of the Job Creation Act.

)* The author is a contributor to the Press Circle and Cikini Students

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