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The Job Creation Law is a Form of the Government’s Presence to Encourage Investment and Ease of Doing Business


By: Astrid Julian )*

The Job Creation Act is an effective regulation, which can encourage investment in Indonesia. The reason is that there is an investment cluster in this Act to make it easier for investors to do business.

The reformation era, which began in 1998 and continues until now, still leaves some negative effects from the New Order era. In the past, when it was going to make a business, it was very difficult. The reason is because it requires a very large capital and complicated management. During the New Order era, it was common for unscrupulous employees to ask for facilitation payments so that someone’s business license could be completed quickly.

However, during the administration of President Jokowi, all of that was abolished. Since the beginning of becoming RI-1, he really wanted to reform the bureaucracy and was vehemently opposed to corruption. Apart from that, he is also very pro-entrepreneur and finally the Job Creation Law was made. This law is very friendly for business people because it has an ease of doing business cluster. There is also an investment cluster to make the investment process easier in this country.

The Chancellor of Sebelas Maret University, Jamal Wiwoho, stated that the issuance of the Job Creation Law is one proof that the government is here to encourage investment, through various business facilities. Currently, Indonesia is overcoming the impact of the pandemic on the economy, namely high unemployment. When there are investors, there will be many job vacancies.

The Job Creation Act has an investment cluster to facilitate the investment process in Indonesia. Foreign businesses can register their businesses and get permits quickly, via online single submission. This convenience will encourage many other investors to enter and do business in Indonesia.

With many investors, many factories were built as a result of investment cooperation. Automatically they need more employees and reduce unemployment in this country. This is the positive domino effect and what the government hopes for, because Indonesian citizens of productive age have jobs and are no longer sluggish due to the pandemic.

Investment is being boosted by the government because with money from investors we can build the country. If the economy continues to grow thanks to new businesses, the wheels of the economy will roll quickly. We can rise from the bitterness of this 2-year pandemic. The government has considered the long-term impact of investment so that it enacted the Job Creation Law which is pro-investor and also the people.

The Job Creation Law also encourages ease of doing business because it has a cluster of ease of doing business. It is stated in the cluster that the business license is risk-based. As for MSMEs (Micro, Small, and Medium Enterprises) it is a low risk. MSME entrepreneurs only need to take care of a business license number so that their business is legal.

With a business license number, MSME businessmen can get credit from banks. They can continue to trade because there is more capital. This proves that the government is very pro-people because it issues a law that can make many small entrepreneurs able to do business smoothly.

If in the past every businessman who wanted to have a business license had to take care of an AMDAL (Analysis of Environmental Impacts) then now it is not. The reason is because only medium high risk businesses have to take care of it. MSME businessmen do not have to take care of it because it is a low risk and they are happy because taking care of the AMDAL is very expensive.

The Job Creation Law is clear evidence that the government is pro-people. With investment clusters, it is easier to enter foreign investment. When there are foreign entrepreneurs, many factories are built and people can work there, and are no longer unemployed during the pandemic. In addition, this law also supports the ease of doing business so that MSME businessmen are more advanced.

)* The author is a contributor to the Press Circle and Cikini Students

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