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The Job Creation Law Protects the Industrial Climate in Indonesia

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By : Putri Dewi Nathania )*

The Job Creation Law safeguards the Indonesian industrial climate. Maintaining the industrial climate is very important, because this country is trying to recover after the pandemic. With an industry that continues to grow, the economy will get stronger and have a positive effect on the prosperity of the Indonesian people.

The Job Creation Law takes care of almost all fields. Starting from investment, economy, forestry, to industry. This rule change was deliberately made to facilitate regulation in Indonesia, and cut bureaucratic lines that were previously very confusing and troublesome for entrepreneurs.

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 free from the middle-income trap.

Fithra continued, 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. Therefore, all Indonesian people support the Job Creation Law and its implementation.

Why is the Job Creation Law so important to maintain the industrial climate in Indonesia? This is because so far industrial development, especially in the regions, has remained stagnant. There are regulations that actually make it difficult to progress, for example the problem of the complexity of business licensing. Even though the industry is something that can make Indonesia progress, because if there are many business people who own the industry, it will create jobs for others.

Therefore the government made the Job Creation Law and its derivative regulations. In this law there is a MSME cluster and an ease of doing business cluster that can help all entrepreneurs. Including the small people who own the industry. They will be able to survive because there are regulatory changes in the government, thus facilitating the pace of their business.

Politician Andreas Eddy Susetyo stated that the Job Creation Law would boost MSMEs and small industries, so that they would have a more active presence in the national economy. In a sense, the government helps, because they are the backbone of the economy. In fact, 90% of entrepreneurs in this country are engaged in small industries.

People  working in the industrial sector will be helped, because in the Job Creation Law there are rules to facilitate their business licensing. For example, when someone opens a small bakery industry. When registering legality, there is no need to take care of expensive HO permits. However, it is enough to get a business permit number (NIB).

When a small industry in the culinary field already has an NIB, it can be submitted as a condition for taking credit to the Bank. The bakery business   can get bigger, because there is additional capital to increase the varieties of bread sold, as well as to increase the number of bakery branches. The Job Creation Law has really brought positive changes to small people’s industries.

This change also arose because in the Job Creation Law, business licenses were replaced with risk-based ones. So that small industries with low risk are able to have legality and very low costs, they can even be made free. These permits can also be managed through the website, making it easier for people who don’t have to go from 1 service office to another.

If a small industry already has an NIB, it can be used as a single permit. For example distribution permits, SNI, and halal product guarantee certification. So that branded products will be increasingly trusted by the public, because they already have SNI and have official permission. Small industries will become middle-class industries, even large ones, because their products are in demand in the market. Thanks to the public trust.

NIB also facilitates the management of MUI halal permits. Later when it comes to taking care of halal permits, people also don’t have to pay for it at all, because there is a subsidy from the government. Management is also fast, and less than 2 months like before. They can get halal status, and have no doubts when selling. Because the food, beverage and cosmetic products are proven safe for the public.

The halal label on culinary or cosmetic products is very important, because most people in Indonesia are Muslims. if small industry products are halal, then many people will love them more. In addition, once the product has halal status, the product can be exported to the Middle East region easily. Because they always require halal certificates.

Small industries will be greatly helped by the Job Creation Law, because thanks to the Law they can obtain a business permit number (NIB). This number is very important to be used as capital, in gaining public trust. Small industries that have NIB will be loved by customers and many buyers. So that they can turn into even bigger people’s industries.

 The Job Creation Law will maintain the industrial climate in Indonesia because there are ease of licensing. With simplified bureaucracy, it will also be easy for industry players to take care of licensing. Their business will be more advanced and have a positive impact on the Indonesian economy.

)* The author is an Analyst at the Perkasa Media Institute

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