The Job Creation Law has a Positive Impact on Investment Growth
By: Savira Ayu)*
The Job Creation Law (UU Ciptaker) will have a positive impact on investment growth. The reason for this is because the Act is a legal umbrella and protects investors, especially foreign investors, so that they can establish mutually beneficial business cooperation.
Indonesia’s economic growth is increasing along with the increase in investment in this country. The reason is, the more foreign investors, the more foreign exchange there will be. The Indonesian economy will continue to grow and its financial condition will always be healthy. Therefore, the government is trying hard to boost investment, one of which is by passing the Job Creation Law.
The Job Creation Law was passed at the end of 2020 and immediately applied throughout Indonesia. In this law, there are investment clusters to make it easier for foreign investors to enter. The world is still hit by a pandemic and there is a threat of a global recession, but the government remains optimistic that it will get big-time investors.
Member of Commission XI of the DPR RI, Heri Gunawan, said that the government would maximize the Employment Creation Act to increase investment rates and grow the national economy. The application of this law must be maximal and can create a conducive investment climate. The moment of national economic recovery must also be maximized so that investment will increase.
In a sense, the Job Creation Law will be able to increase investment, but if it is to be realized it must be maximized so that it is sustainable, and is practiced throughout Indonesia. Don’t let this law not be applied in areas. For example, when there is a potential investor who wants to invest in Lumajang, but he fails because the licensing arrangement is too complicated.
Whereas in the Job Creation Law it is regulated that licensing arrangements can be done online via online single submission (OSS). The management is very practical because it only requires a device and no need to fill out many forms. Potential investors also do not need to come directly to the Licensing Office as before.
Therefore, there needs to be supervision from each regional head, whether his subordinates apply the Job Creation Law or not? Do not let investment in the regions be hampered because someone violates procedures and does not apply this law.
The Job Creation Law must be implemented because it really facilitates investment in Indonesia, especially foreign investment. Foreign entrepreneurs will save time and money because permits are managed via OSS, and do not need to fly back and forth to Indonesia. Licensing is also completed quickly (less than a month) and they can start a business with this official permit.
The more investors, the better because it can boost the Indonesian economy, which was slightly shaken by the pandemic. If there are many investors, many new factories will be established, and the Indonesian economy will rise again. The flow of money will be smoother because everyone has a job, and they become employees in the factory resulting from the investment.
Meanwhile, the Job Creation Law also has a positive impact on the growth of young entrepreneurs in Indonesia. The reason is because there are many facilities provided by the government. Especially the licensing process which is done through online single submission.
With online management, it is easier for entrepreneurs to get the legality of their business. They will not be burdened by lengthy bureaucracy, but will be able to fill out forms and get business permits quickly. The management is also free so that it will not burden the owners of MSMEs (Micro, Small and Medium Enterprises) whose money turnover is still small.
If MSMEs have obtained a business license, they will be more advanced, because the NIB (business license number) is one of the requirements in applying for a loan to a bank. With additional bank capital, the business will grow, because the goods sold are more varied and have new, more sophisticated production equipment.
Young entrepreneurs who have an NIB are also trusted by investors because their business is legal and not fake. If there are more investors, the better because the business is more successful and gets a lot of profit. In this way, MSMEs are more advanced and they must be assisted by the government, because 90% of businesses in Indonesia are small and medium-sized.
All of this happened thanks to the stimulus from the Job Creation Act, which was deliberately made and ratified for the benefit of the people. With the application of this law, the investment world is growing, because there are more and more foreign investors. The business world is also increasingly dynamic because of the simplified and accelerated processing of business permits.
The Job Creation Law is a universal sweepstakes law that changes the face of Indonesia for the better, especially in the investment cluster. In the cluster there are rules to facilitate the entry of foreign investors in this country, thereby fertilizing the investment world in Indonesia. in addition, the business world is also more lively, because there is a lot of help from the government.
)* The author is a contributor to Pertiwi Institute