By: Clara Diah Wulandari )*
The Job Creation Law (UU) is believed to be able to become a regulation that strengthens the economy in Indonesia, various existing regulations are believed to be able to increase investment which then has an impact on significantly increasing the number of jobs.
The global economy is currently unpredictable, this of course makes Indonesia must have regulations that are able to strengthen the economy for its main post-pandemic stability. During the pandemic, many companies laid off their employees and many of the workforce had difficulty getting jobs.
The Covid-19 pandemic storm has passed, it is time for Indonesia to rise up with all the strength it has. The Job Creation Law is a kind of energy to continue strengthening the economic sector in Indonesia.
An economist from the University of Indonesia (UI), Fithra Faisal, said that the Job Creation Law is one of the important pillars in order to encourage exports and support the economy in Indonesia. To be able to increase the role of industry, of course the government needs to improve human resources and infrastructure.
Apart from that, the Job Creation Law is also able to create the widest possible employment opportunities, so that this will have an impact on the absorption of the workforce. Thus, it is hoped that Indonesia can be released from the middle economic trap.
Fithra also explained that there are equal and simplification aspects in the Job Creation Law. So far, investors still do not have a clear legal umbrella when they want to invest in Indonesia.
The existence of previously overlapping regulations made investors cancel their intention to invest in Indonesia. This is also reinforced by the convoluted bureaucracy involved in obtaining business licenses in Indonesia. In order to fix this, the Job Creation Law was formed which is expected to be able to cut licensing regulations so that economic development will be faster.
By accelerating the processing of permits, of course it is hoped that the Micro, Small and Medium Enterprises (MSMEs) sector can move and develop so that they are able to absorb labor. This shows that the Job Creation Law is not only in the form of a regulation, but also an accelerator that can increase the number of businesses.
The Job Creation Law’s partiality towards MSMEs is an answer to accusations stating that the Job Creation Law is only pro against the oligarchy, in fact the Job Creation Law is an anticipatory step to overcome a crisis that has resulted in mass layoffs. The Job Creation Law has written that companies cannot treat workers arbitrarily, workers must also receive protection as long as they are employees.
On the other hand, workers whose status is outsourced are also guaranteed wage protection and welfare. Workers’ rights must also be protected if there is a change of outsourcing company. This shows that the Job Creation Law not only expands employment opportunities but also provides security guarantees for workers.
Meanwhile, the Job Creation Law also supports the government’s efforts to eradicate corruption, this is because the Job Creation Law has regulations to cut complicated licensing models, so that extortion practices can be eliminated.
It is hoped that the existence of the Job Creation Law will be able to increase investment with a simple licensing system. The business activity licensing process has now been changed from previously permit-based to risk-based licensing. A system called Risk-Based Licensing can be obtained online through the Online Single Submission Risk Based Approach (OSS-RBA).
One of the derivative regulations from the Job Creation Law is Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing, which states that licensing must be electronically based via online single submission (OSS). All of these processes are carried out at the Ministry of Investment and are carried out in a transparent manner.
With the ease of obtaining business licenses, it is of course expected that the investment climate in Indonesia will improve. As well as attracting local and foreign investors to invest in Indonesia. If the investment rate increases, of course employment will be more open in various sectors, so that the number of unemployed will be more and more absorbed in the world of work.
Referring to BKPM’s records, Indonesia has a vision to become the top five countries with the strongest economies in the world, and to have a GDP of IDR 27 million per capita per month by 2045. It is only natural that Indonesia hopes for the Ciptaker Law which makes the business climate conducive, can absorb more workforce thereby reducing unemployment, as well as increasing economic growth, as well as increasing worker productivity.
The main objective of the Job Creation Law is, of course, to align existing policies at the central and regional levels, as well as address overlapping issues, moreover this law will cut articles that are deemed ineffective. This cut will accelerate the strengthening of the economy.
It is hoped that the existence of the Job Creation Law will have an impact on strengthening the economy, as well as expanding employment opportunities. So that the economy in Indonesia will increase supported by the expansion of employment opportunities.
)* The author is a contributor to Nusantara Reading Room
