The Job Creation Law is a key element in simplifying bureaucracy and reducing regulations.
By: Devira Julianty
The Job Creation Law (UU Ciptaker) is a key element in realizing the simplification of bureaucracy and the reduction of regulations in Indonesia. Therefore, it has become one of the government’s monumental policies to continuously drive economic growth and enhance the nation’s competitiveness on the global stage.
One of the most crucial aspects of the policy’s existence is the simplification of bureaucracy and the reduction of regulations that have been the main obstacles to business and investment activities in the country.
With the enactment of the Job Creation Law, the government is striving to create a business environment that is much more efficient, transparent, and highly competitive, as there are no longer complicated bureaucracies and overlapping regulations as there were before.
Certainly, the existence of a set of regulations commonly known as the Omnibus Law can eliminate the complaints that have long been voiced by business actors and investors regarding the lengthy and convoluted licensing processes, which consume time and resources, and create uncertainty for investors.
Before the Job Creation Law, permits to establish a business could take months, even years, due to the need to go through various stages and approvals from different government agencies. This condition often makes investors reluctant to invest in Indonesia, opting for other countries that offer faster and simpler licensing processes.
The Secretary of the Ministry of Administrative and Bureaucratic Reform (Kemenpan-rb), Rini Widyantini, emphasized that the government’s efforts to simplify regulations are indeed being carried out through several strategic steps, one of which is the enactment of the Job Creation Law.
Through this policy, the government is indeed striving to break down the barriers that make it difficult for businesses to grow in Indonesia. Therefore, the Omnibus Law becomes a solution to reduce regulatory complexity.
Now, there has been a unification of 11 clusters into a single regulation that encompasses Simplification of Licensing, Investment Requirements, Employment, Ease of Doing Business, Empowerment and Protection of MSMEs, Support for Research and Innovation, Government Administration, Imposition of Sanctions, Land Procurement, Investment and Government Project Facilitation, as well as Special Economic Zones.
In addition, the Omnibus Law method is also one of the best methods for producing an efficient and aspirational legal product, directly capable of incorporating the desires of the people.
Meanwhile, the Secretary General of the Ministry of Manpower (Sekjen Kemnaker) Anwar Sanusi explained that the government’s ratification of the Job Creation Law was necessary to provide a quick and appropriate response to the dynamics of global economic changes. He emphasized that without structural reforms through such policies, economic growth would also slow down.
Not only that, but the presence of the Omnibus Law is also one of the factors capable of addressing the biggest challenge of continuously maintaining and providing job opportunities that reach 2.7 to 3 million per year.
On the other hand, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that changes in the licensing process and the expansion of business sectors for investment will be game changers in accelerating investment and creating new jobs.
With the implementation of the Job Creation Law and its implementing regulations, Indonesia is entering a new era in providing ease and certainty in licensing and business activities, which will further enhance investment competitiveness and productivity, as well as the efficiency of business operations.
The Job Creation Law is presented as a solution to that problem. One important breakthrough that has been introduced is the risk-based licensing system. With this system, the licensing process is tailored to the level of risk associated with the business activities to be undertaken.
Low-risk ventures, such as micro, small, and medium enterprises (MSMEs) and other small businesses, no longer require complex licensing and can start their operations more quickly. Meanwhile, high-risk ventures continue to face strict oversight, but with clearer and less confusing procedures. This simplification not only speeds up the licensing process but also reduces the costs that business operators have to incur.
The reduction of overlapping regulations is also a key focus of the Job Creation Law. Before this law was enacted, many regulations in Indonesia were contradictory and not synchronized between one ministry and another.
This creates confusion among business actors and increases the risk of non-compliance with the law. The Job Creation Law aims to unify various regulations that were previously scattered across different laws into a single legal umbrella.
Thus, business operators can have clearer and more consistent guidelines in running their businesses. This simplification of regulations also minimizes the potential for abuse of power and corrupt practices that often arise from bureaucratic complexities.
It is therefore very clear that the Job Creation Law is a crucial and strategic step by the government to address the bureaucratic issues in Indonesia that have long hindered national economic growth.
The simplification of bureaucracy and the reduction of regulations make the Job Creation Law a policy that paves the way for creating a business climate that is much more competitive and innovative.
The final result will be able to realize economic growth much faster, along with the creation of more job opportunities and an improvement in the welfare of all Indonesian people.
*) Contributor of Gala Indomedia Institution
