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Academics Call Job Creation Law Favors Small Businesses (UMKM) and Builds New Optimism


Jakarta – Pelita University Postgraduate Lecturer, Harapan Emrus Sihombing assesses Law (UU) No. 11 of 2020 concerning Job Creation provides new optimism in terms of employment and future economic growth. This is because it is believed that the Job Creation Law will provide a number of licensing facilities for the micro, small and medium enterprises (UMKM) sector.

“Small Business moves to become Medium Enterprise which in turn Medium Business advances to become Big Business. As a result of this, new Micro Enterprises have sprung up. And so on.”, he explained.

According to Emrus, this law will make it easier to set up a business because it cuts the bureaucratic flow to make it simpler. He gave an example that the establishment of a limited company (PT) can only be done by one person or referred to as an “individual PT”.

“In addition, the number of members forming cooperatives as a business sector to advance the people’s economy has been greatly reduced, not as much as before the birth of this Job Creation Law. UMKM capital assistance from the government is one of the main focuses in the Job Creation Law.” he added.

The consequence of the development of changes in business levels, continued Emrus, is not only being able to absorb more workers in various fields of skills and talents, but being able to create new jobs.

“In fact, it can be predicted that Indonesia will have a shortage of manpower if all components of the nation support and implement the job creation law, compared to before the job creation law,” he continued.

The Pelita Harapan University Postgraduate Lecturer also admitted that an increase in the number and fields of business would certainly be able to build interrelated and integrated business collaborations between Big Business, Medium Enterprises, Small Businesses and Micro Enterprises. These conditions will at least provide benefits to the community and advance the national economy.

“Thus, the per capita income of all Indonesian people will continue to increase from year to year. Therefore, in my opinion, it is no exaggeration for Indonesia to become one of the world’s extraordinary economic powers in 2035,” added Emrus.

Emrus also believes that the Job Creation Law is in favor of the socio-economic welfare of the Indonesian people. He explained that the regulation had also considered many things.

“The government’s seriousness with regard to the Job Creation Law in favor of socio-economic welfare for all Indonesian people can be seen in the contents of the Government Regulation (PP) and presidential regulations (Perpers) as derivative regulations. A number of Government Regulations and Presidential Regulations were prepared by taking into account, accepting and considering all the aspirations of the people,” he concluded.

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