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Setting up a business is getting easier with the Job Creation Perppu


Jakarta – The ease of starting a business is one of the benchmarks for progress in the economic sector. The easier it is to set up a business is the impact of the existence of a Government Regulation in Lieu of the Job Creation Law (Perppu Ciptaker) which is considered important for the interests of the investment climate.

The government continues to work to improve the Job Creation Law (UU Ciptaker), which was previously declared conditionally unconstitutional through the Perppu Ciptaker. Previously, the Ciptaker Law was also considered to be oriented towards the welfare of the Indonesian people in general and could actually have a positive impact on overcoming the shortage of manpower in all fields and levels of business and enterprises.

Pelita Harapan University Postgraduate Academic and Lecturer, Emrus Sihombing said, the Ciptaker Law was able to build new optimism in terms of employment and significant economic growth in Indonesia going forward, of course since the Ciptaker Law was actually implemented without significant disruption. The Ciptaker Law was also able to build legal certainty, including imposing measurable sanctions.

In addition, Emrus also assesses that if examined carefully, the contents of the Ciptaker Law are full of ease of business licensing, so that this will create opportunities for the emergence and growth of the number and various fields of Micro, Small and Medium Enterprises (MSMEs).

According to him, the procedures and bureaucratic flow of setting up a business sector is very simple. For example, the establishment of a Limited Liability Company (PT) can only be done with one person or referred to as an individual PT.

His party also emphasized that the number of members forming cooperatives as a field of business to advance the people’s economy has been reduced, so that in the latest regulations there are not as many as before the birth of the Ciptaker Law. MSME capital assistance from the government is also one of the main focuses in the Ciptaker Law.

With the Ciptaker Law, the business climate in the country is in favor of MSMEs. Micro Enterprises are able to develop into small businesses. Meanwhile, Small Businesses move to become Medium Enterprises which in turn Advanced Medium Enterprises become big businesses.

On a different occasion, the Ministry of Agriculture (Kementan) stated that the Job Creation Perppu really helps business people who want to arrange business licensing, especially in the agricultural sector.

The Perppu on Job Creation was issued due to the need to follow up on the Constitutional Court Decision, namely improvement through replacement of Law Number 11 of 2020 concerning Job Creation.

The Perppu was signed by President Joko Widodo and promulgated on December 30, 2022. Particularly in the agricultural sector, there were no changes to the substance previously stipulated in Law Number 11 of 2020 concerning Job Creation.

Head of the Legal Bureau of the Ministry of Agriculture, Maha Matahari Eddy Purnomo in a press statement, said that several technical substances in the agricultural sector in the Job Creation Perppu were enacted to make it easier for agricultural sector actors to obtain permits, however still provide adequate protection for farmers in doing farming.

Eddy assessed that the ease of licensing is realized through regulation of risk-based business licensing or the Online Single Submission Risk Based Approach (OSS-RBA) as stipulated in Government Regulation Number 5 of 2021 concerning Risk-Based Business Licensing.

The government through the Ministry of Agriculture has also provided business facilities such as in issuing organic certificates for organic rice by the Organic Certification Institute (LSO), it has facilitated micro, small and medium enterprises, in this case farmers, in the form of financial assistance in the certification process.

According to Eddy, the Perppu on Job Creation complies with the provisions of Article 22 paragraph (1) of the 1945 Constitution of the Republic of Indonesia due to a compelling crisis.

The crisis includes global dynamics caused by rising energy and food prices, climate change, and supply chain disruptions that have resulted in a decline in world economic growth and an increase in inflation which will have a significant impact on the national economy.

In addition, entrepreneurs also get in managing permits with the OSS system. Article 22 of the regulation states that the issuance of permits is attempted only through 1 door, namely OSS.

The party authorized to issue business permits through OSS is the Business Investment Service through OSS, namely the Investment Service and Provincial One-Stop Services (DPMPTSP) at the provincial and district/city levels. Furthermore, the administrator of the Special Economic Zone (KEK) and the head of the Free Trade Zone and Free Port (KPBPB) management agency.

In terms of permits in the regions, the government must provide convenience because in obtaining permits it is mandatory to use OSS. Thus, entrepreneurs do not experience a complicated licensing process because everything uses an online alias online system.

The Job Creation Law and the Job Creation Perppu aim to make it easier for anyone who wants to start a business. So it is hoped that the business sector will grow, where this will also have an impact on the amount of employment.

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