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Job Creation Law Part of Indonesia’s Economic Transformation

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By: Deka Prawira) *
The Job Creation Law is designed as a panacea, to overcome the negative effects of the corona storm. Especially in the economic sector, because Indonesia’s financial condition is still fluctuating. With the stimulus of this Law, there will be economic transformation. So that we can survive the threat of the monetary crisis volume 2.
The Indonesian economy had declined due to the enormity of the corona storm. Although this condition is also experienced by other countries, we never give up. The government provides a solution by making a Job Creation Law. why should a law? Because if there is a change in rules, there will be changes in all fields, especially the economy.
Saidiman Ahmad, a public policy researcher from a research institute stated that the Omnibus Law on the Job Creation Law is part of Indonesia’s economic transformation. In the sense that this law will re-raise Indonesia’s financial condition, because it creates a positive domino effect in the economic sector.
Saidiman continued, there were 3 things the president had done for economic transformation. The first is infrastructure development that is equitable and massive. While the second is human resource development, and the third is institutional, namely the omnibus law of the Job Creation Law.
What is meant by economic transformation is a series of changes that are interrelated with one another in production, import, export and the required production factors. In order to support the development process and economic growth.
The changes referred to in the Job Creation Law are the rules and bureaucracy that are presented, so that they do not overlap. One of the requirements for export is to have a business license, while in the past not all MSMEs had it, due to cost factors. However, licensing is now simplified, accelerated, and made free. So that MSMEs that will export can expand the market.
If it is made easy for MSMEs to export, then they will reap profits in dollars. So that the results are even more. The existence of the MSME business, which had decreased due to the pandemic, could rise again, because it found new markets abroad. Finally, MSMEs can develop and reduce unemployment, because they recruit new employees.
In addition, production regulations were also amended by the Job Creation Law. In the past, small producers were hampered by the high cost of HO permits, and it took a long time to leave. So now risk-based licensing. They can get permission easily, because the business is low risk. Permit is very important because to take care of P-IRT and others, you have to pocket it.
In the end, the legality will strengthen the UMKM business. They are not afraid that the authorities will break into them when selling on the roadside, because they have an official license. Entrepreneurs can confidently sell anywhere, whether around the house or when there is a crowd. If you have a business license, cooperation with investors will also run well, because they are trusted by investors.
A business license is also a magic card because it is one of the conditions for applying for a loan to a bank. So that they can get a capital injection, to continue their business. if there is additional money, then it can enlarge the shop, increase the variety of merchandise, and promote the business.
If the Job Creation Law is really applied in people’s lives, then they will be happy. This is because the economic transformation that occurs as a result of the stimulus from the Act will create a positive domino effect. Export of goods is made easier and makes entrepreneurs profitable. Small producers also don’t have to take care of HO permits.
The community fully supports the Job Creation Law because it can trigger progress in Indonesia. Financial conditions will improve again, after previously teetering due to the effects of the corona pandemic. Entrepreneurs will be happy because the bureaucracy is facilitated and their business is progressing and generating more coffers of money.

) * The author is a contributor to Pertiwi Media

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