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The Job Creation Law Can Change Indonesia’s Economic Landscape

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By: Putu Prawira)*

The implementation of the Job Creation Act is believed to be able to change the Indonesian economic landscape for the better. The existence of these regulations can summarize licensing, so as to increase investment flows to Indonesia.

Indonesia needs regulations to be able to maintain the resilience of the national economy. The regulation that needs to be applied is the Job Creation Law. This application is important for Indonesia. One of them is about its role in domestic economic activities.

This was conveyed by the Deputy Minister of Finance (Wamenkeu) Suahasil Nazara. According to him, the enactment of the Job Creation Law cannot be separated from the role of Law Number 13 of 2022 concerning the second amendment to the formation of legislation. This is one of the mandates of the Constitutional Court to perfect the rule.

Suahasil said, the substance of the Job Creation Act can change the landscape of the Indonesian economy in various sectors. One of them is changing the way the bureaucracy works in direct contact with the community. At the same time improving the workings of the internal bureaucracy itself. He said that doing business in Indonesia is not only transactional between actors. More than that, he mentions business activities that involve public participation.

According to Suahasil, this public participation has become a mandatory thing which is also regulated in the PPP Law. That is, it leads to meaningful public participation in accordance with the substance of the law. There are 3 important points in meaningfull participation which he calls. This supports the success of the substance regulated by the PPP Law and the Job Creation Law.

First, people have the right to be heard. He explained that in support of this first point, there is the right to voice public opinion. Only then, have the right to be heard. Second, the public has the right to have their opinions considered. In this case, related to the implementation of the rules, the community inherently has both rights. Third, there is the right to obtain an explanation of the opinion submitted. This means that the public needs to know the clarity of the decisions taken.

As previously reported, the enactment of Law Number 13 of 2022 concerning the Establishment of Legislation began with the decision of the Constitutional Court (MK) on judicial review of Law Number 11 of 2020 concerning Job Creation. This law is the result of the second revision of Law No. 12 of 2011.

At that time, the Constitutional Court stated that the job creation law was unconstitutional. So that the Constitutional Court gave orders to legislators to make improvements or revisions with a maximum deadline of two years from the date the decision was read or until November 25, 2023.

Suahasil said that the government was not only making improvements to the process of forming laws. But also perfecting the substance. For the government, the Job Creation Law will be very important because if it is implemented properly, it will change the foundations of the life of the state. Especially those that are directly related to the government.

Meanwhile, the government has claimed, the implementation of the Job Creation Law has succeeded in collecting direct investment of Rp 90 trillion until 2024. This realization comes from 4 special economic zones (KEK).

Previously, the DPR had passed Law Number 13 of 2022 concerning the Establishment of Legislation. The existence of this regulation means that the Job Creation Law that uses the Omnibus Law method is in accordance with the laws and regulations, because it was previously declared conditionally unconstitutional.

Expert Staff for Regulation, Law Enforcement and Macroeconomic Resilience, Coordinating Ministry for Economic Affairs, Elen Setiadai said, now that Law 13 is in effect, there is guidance and there is already an omnibus method, in addition to the Job Creation Law, there is also the Law on Harmonization of Tax Regulations (HPP).

Before there was Law Number 13/2022, if there were errors such as typing, it could not be corrected. So that at this time the government is also making improvements to writing without changing the substance of the Job Creation Act such as typos, corrections to misrepresenting articles and so on. Elen explained that currently the government is preparing to improve the Job Creation Law, it has also prepared a team of experts who will provide criticism and input.

It should be noted that until 2022, the investment that comes in thanks to the convenience of the Job Creation Act is recorded at IDR 60 trillion. The investment was aimed at 4 new SEZs, among others, Gresik SEZ managed by Freeport, Lido SEZ by MNC Group, Neongsad SEZ by Hong Kong Investors and Batam Aero Technic SEZ from MRO.

In addition, the Job Creation Law has also encouraged the export of the Bintan Alumnia smelter with a volume of 2 million tons per year. So that the realization of foreign investment achievements can still be achieved even though it is still in a pandemic atmosphere.

The Job Creation Act offers a variety of

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