The Job Creation Law Encourages Inclusive Economic Growth in the Country

The Job Creation Law (UU) is considered capable of encouraging inclusive economic growth in this country. This economic inclusiveness occurs due to regulatory reforms by the Government of the Republic of Indonesia (RI). When economic growth in Indonesia occurs inclusively, it is not impossible that there will be more opportunities to attract or generate interest from domestic and foreign investors.
All of this is of course thanks to the ratification of the Job Creation Law by the Indonesian Government. So that when an inclusive economy occurs, investors invest a lot in Indonesia, which then also has an impact on the use of labor or the opening of job opportunities for the community.
Since the beginning of its planning, the government has continued to strive to provide the best for the community and nation through the Job Creation Law. This is proven by how many aspirations have been absorbed directly from the people’s voices to take part in formulating a series of policies.
Not only did it absorb aspirations directly from the people’s voices, but the government also formed a Job Creation Law Task Force as stated in Presidential Decree (Keppres) No. 16 of 2022.
The Presidential Decree on the formation of the Task Force aims to not only provide outreach to the wider community, but also monitor how the Job Creation Law itself is implemented.
It is not without reason why the government formed this Task Force, because the government really wants and wants to ensure that the Job Creation Law itself is able to truly bring many benefits and can be felt at all levels of society.
Secretary of the Job Creation Law Task Force, Arif Budimanta, explained that there are at least 3 main points of this policy, namely to provide convenience, then protection and empowerment, especially for Micro, Small and Medium Enterprises (MSMEs) in Indonesia.
These three main points are very important because in fact MSMEs have always been the backbone for the running of economic activity in Indonesia, primarily making the nation’s economy have very strong fundamentals so that it can withstand any dynamics or shocks, even those that occur at the world level.
Not a few regulations in the Job Creation Law have the aim and objective of opening wider space for business actors so that if they need labor, the absorption will be very effective, efficient, optimal and maximum.
Moreover, the Job Creation Law makes it easier to absorb the workforce, which is a very concrete solution to the demographic bonus, where a significant surge or increase in the workforce occurs.
Therefore, the canalization of the demographic bonus can also be achieved optimally thanks to this set of rules. Because the government makes it very easy for everyone to open their own business.
So in other words, when the entire community has the convenience of opening a business, automatically the absorption of labor or the provision of jobs will also increase.
Without discrimination, the government provides easy access to business for both small and large entrepreneurs. In terms of business licensing, capital investment and even employment aspects, everything becomes very easy.
This set of rules is a new breakthrough to form an integration process for business systems that previously had multiple entries, but are now single entry and even digital-based.
Meanwhile, the Chancellor of Andalas, Prof. Yuliandri highly appreciates the government for passing the Job Creation Law, which according to him has brought many benefits to society.
The government has indeed provided very concrete solutions to improve the investment climate in Indonesia, simplify bureaucracy and also absorb labor, especially for the nation’s young generation.
On the other hand, Director of Investment Deregulation, Ministry of Investment, Dendy Apriandi said that Indonesia really needs an inclusive economy, one of which is when capital investment or investment activities occur, both from domestic and foreign and regional investors to increase contributions.
This big collaboration can be done in various ways and with benefits, such as building new regional sources of economic growth to realize the Indonesia-centric vision, regional entrepreneurs becoming masters in their own country, MSMEs having a big opportunity to advance in class to advance their respective regions, and holding back the rate of urbanization in the context of equal distribution. national economy.
The demographic bonus is like two sides of a coin, on the one hand it is positive because the generation of more productive age makes Indonesia have higher competitiveness and bargaining power, but on the other hand if the younger generation is not productive it will not create added value for economic growth, in fact it will become boomerang for the Indonesian economy.
Therefore, the existence of the Job Creation Law is very important because it is able to encourage inclusive economic growth in this country, so that even though there is a demographic bonus, this actually has a good impact.
)* The author is a contributor to the Lintas Nusamedia Institute