By: Galang Faizan Akbar)*
The Job Creation Law (UU) is a law that covers many fields and provides legal certainty for investors. With this legal certainty, it is hoped that investment and industry can continue to grow.
The Job Creation Law is a sweeping global law that the Indonesian people really need. The reason is because in this law there are many regulatory reforms, one of which is in the field of investment. This field is in the spotlight because in the law, many facilities are mentioned. Among them are convenience for investment licensing, short registration period and what can also be done online.
Therefore, as good citizens, all Indonesian people must support the Job Creation Law, because the government has made it in great detail, for the welfare of the people. Change, especially in the field of investment, is necessary. The goal is for Indonesia’s economy and industry to recover after being hit by a pandemic for 3 years.
University of Indonesia Economic Observer Fithra Faisal stated that the Job Creation Law was able to create the widest possible employment opportunities, besides that it was also able to increase the economic growth target at a minimum, so that Indonesia would be released from the middle-class economy.
Fithra Faisal added, the Job Creation Law can also be a solution to continue to drive export figures and also support economic growth in Indonesia in terms of institutional improvement. This is important because Indonesia’s industrial climate is currently experiencing problems in being able to support 6% economic growth per year. To be able to increase the role of industry, the government must improve infrastructure, human resources and institutions.
Through the Job Creation Law, the Government aims to improve people’s welfare, and keep the investment and industry climate alive in Indonesia.
It is hoped that this can be realized because the Job Creation Law prioritizes aspects of equity and simplification. The reason is, so far investors still don’t have a clear legal umbrella when they invest in Indonesia, therefore they really need a legal umbrella in a short time, one of which is through the ratification of the Job Creation Law.
Meanwhile, the Coordinating Minister for the Economy Airlangga Hartarto stated that the Job Creation Law which is complete with implementing regulations will provide certainty, ease of doing business, and cut lengthy permits for investors so as to increase confidence.
In a sense, the Job Creation Law will attract many investors because they are given certainty in doing business in Indonesia. If there is a law as a legal umbrella, they will enter this country optimistically, because they are not afraid of a long and tiring bureaucracy. Moreover, the licensing process also takes only a short time and can be done online, so it saves time and costs.
According to research from a survey institute, Indonesia occupies the 4th position of countries worldwide, as a favorite place to invest, for countries in Europe and America. This is very encouraging because Indonesia is considered the right place to invest capital for foreign entrepreneurs.
Investments from Europe and America are certainly of high quality because they don’t play around in investing, it can be up to billions of rupiah. Mutually beneficial cooperation will occur so that the country’s economy revives after being hit by a pandemic storm and investors also receive sizable profits.
When there is quality investment coming in, the project will be even bigger so that it can attract a lot of workers to enter there. In this way, the government will be assisted because it will reduce the unemployment rate in Indonesia, and indeed, since the beginning of the pandemic, the number of people who have been laid off unilaterally by factories has been increasing. If there is an investment project then they can work there.
Entrepreneurs from Europe and America are willing to invest in Indonesia because in our country, renting factory land is still relatively cheap when compared to other countries. The emphasis on costs will be profitable so they want to invest.
In addition, Indonesia also has a very good market because the population is more than 200 million people. Goods produced in the investment-produced factory can be sold domestically and benefit.
With investment it will have a positive impact on the industry because there is an injection of funds from investors. As a result, the industry in Indonesia will progress rapidly. The investment cluster is the spearhead for getting up during a pandemic. Foreign investment makes the country’s finances recover slowly.
The Job Creation Law will guarantee investment security in Indonesia. With the investment cluster of the law, it becomes a legal umbrella for foreign investors. The Job Creation Law will maintain the investment climate and keep the industry in Indonesia growing, because there is an injection of funds from foreign investment.
)* The author is a contributor to Persada Institute
