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The Job Creation Law Guarantees Certainty and Ease of Doing MSMEs

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By: Deka Prawira )*

The Covid-19 pandemic requires Indonesia to remain strong both in the health and economic sectors. So that economic growth must continue. For this reason, the Job Creation Law is here to offer a variety of benefits, both for workers and business actors.

For Micro, Small and Medium Enterprises (MSMEs), the benefits obtained from the Job Creation Act are in the form of support in the form of convenience and certainty in the licensing process through OSS (Online Single Submission).

MSME actors are also given convenience in registering Intellectual Property Rights (HAKI), establishing an individual Public Company (PT), to simplified requirements and low costs.

For example, in the establishment of a PT, there is no need for a notarial deed of company establishment, but only company statements which are made electronically and ratified by the Ministry of Law and Human Rights. This of course can encourage legal certainty for MSME actors.

The Job Creation Law will also provide convenience and certainty to business actors in obtaining business licenses by implementing a risk-based approach and standard application. So far, the approach applied is a license-based approach that is multi-layered, both at the administrative office level and at the regulatory level, regardless of the complexity of the impact and is evenly distributed for all types of businesses.

Business actors will also receive incentives and facilities, both in the form of fiscal incentives as well as convenience and certainty of services in the context of investment, in addition to the existence of a wider field of business activity for investment to enter, with reference to the priority business fields by the government.

On the other hand, the Job Creation Law is able to create new opportunities for the business world and the workforce, especially during this Covid-19 pandemic. There are so many stimuli for anyone who wants to start an entrepreneur. The Job Creation Law also provides certainty, for example related to empowerment, protection of MSMEs and ease of doing business. This can be a solution for workers affected by layoffs to start businesses.

The government also provides a lot of stimulus for MSMEs to survive the impact of the pandemic. One of them is the ease of establishing a business, especially MSMEs.

Within the MSME cluster there are many changes in licensing issues. MSME actors are given convenience through simplifying the number of business permits required. This will certainly have an impact on the acceleration of business legality and public trust. This has the potential to open up opportunities for MSME actors to expand and obtain capital.

The Job Creation Law makes it easier for foreign investors to invest in small and medium-sized companies. If this can be done, it is not impossible that there will be foreign exchange growth from developing small and medium-sized companies. This will also create job opportunities so as to reduce unemployment. The broader effect of course can increase the welfare of society and the economy to move back in a positive direction.

The Employment Creation Act is a form of win-win solution presented by the government for various problems that have occurred in the business sector and labor management. This of course can accelerate economic growth in Indonesia, because with the ease of licensing regulations, investors will be more interested in investing in Indonesia.

The Job Creation Law is expected to be able to answer the current challenges of globalization and at the same time increase economic growth in Indonesia during and after the pandemic. The Job Creation Law also guarantees convenience for business actors and guarantees the rights of workers affected by layoffs, of course this regulation is needed to increase economic growth in Indonesia.

)* The author is a contributor to Pertiwi Institute

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