By: Edy Baskoro)*
The Job Creation Act is a universal sweeping regulation that is able to cut regulations. With this regulatory cut, it is hoped that investment will increase and job opportunities will be wide open.
The main objectives of the Job Creation Law are to encourage investment, accelerate economic transformation, align central-regional policies, provide ease of doing business, overcome overlapping regulatory problems, and eliminate sectoral egos.
We need to know that the Covid-19 Pandemic has presented quite a number of challenges over the last 2 years. The global economy is also experiencing similar problems. Therefore, the Government of Indonesia must continue to strive to overcome these problems. One of them is the formulation of the Job Creation Act.
Ratification of Law No. 11 of 2020 concerning Job Creation is considered to be able to streamline government services to facilitate investors in making investments with a simpler licensing system.
The business activity licensing process has now been changed from permit-based to risk-based. A system called Risk-Based Licensing can be obtained online through the Online Single Submission Risk Based Approach (OSS-RBA).
Risk-based licensing is a licensing system based on the level of business activity risk. The risk level is divided into low, medium, high and high. In addition, several other factors are also considered, such as the rating of the scale of business activities and land area as stated in the attachment to the government regulation regarding the implementation of risk-based business licensing.
An easier and faster licensing system will certainly help improve the country’s economy. This is because a good licensing system will make prospective investors more interested in investing in Indonesia.
Investment requirements are made easier with the Job Creation Act. First, it stipulates investment business fields that are encouraged for investment. The investment criteria in question include high technology, large investments, digital-based and labor-intensive.
Second, for MSME business activities, they can partner with foreign capital. Third, the status of foreign investment (PMA) is only associated with foreign ownership restrictions. The fourth requirement is that the investment requirements in the sector law are removed because they will be regulated in the Presidential Regulation on Investment Business (BPUM).
On a different occasion, UIN Syarif Hidayatullah Jakarta Development Economist Arisman said, Law (UU) no. 11/2020 on Job Creation has a positive impact on the development of Special Economic Zones (SEZ). According to him, there are 2 main roles of the Copyright Act in the development of SEZs.
The first is to minimize authority. This is because decentralization causes authority problems, small kings appear in the regions so that it slows down licensing. The second is the decentralization of licensing.
Arisman also said that the Job Creation Law is more suitable to be referred to as the Law on the Ease of Business. Because, according to him, job creation is only a multiplayer effect from the ease of doing business.
According to him, the Indonesian government has built and prepared 15 SEZs spread across several regions, where the distribution is fairly even and the types of SEZs are in accordance with the characteristics of each region.
The SEZ has the aim of accelerating economic development that can invite foreign investment. For this reason, business licensing is accelerated, access to land is easier and better labor regulations.
Of course, apart from being supported by good physical infrastructure, SEZs must also be supported by regulatory and bureaucratic policies. The job creation law has also been clarified by the existence of derivative rules from the law.
In addition to changing the bureaucracy to become more efficient, the Job Creation Law will also assist MSMEs in managing sales results, investment, number of workers and also fulfilling net worth indicators. Then, the Job Creation Law also encourages positive collaboration between large companies and MSMEs. The government will also assist MSMEs in obtaining the required certification.
With the efficiency of government services to facilitate the investment process, it is not impossible that many investors will be interested in investing in Indonesia, this is certainly good news, because with the investment in Indonesia, job opportunities will be more open and able to reduce the number unemployment.
)* The author is a contributor to Pertiwi Institute
