Encouraging Investment and Expanding Employment Opportunities, Job Creation Law Brings Many Benefits to the National Economy
By: Bambang Prasetyo
The Job Creation Law is able to encourage the realization of a healthy investment climate and also expand employment opportunities in Indonesia. Of course, both of these things can bring many benefits to the national economy.
The government has indeed succeeded in passing the most daring and ambitious policy to accelerate national economic growth, namely the Job Creation Law. By using the Omnibus Law concept, the policy has many beneficial goals.
Some of the benefits of the Job Creation Law are to reduce complicated regulations, then attract more investment and be able to create much wider employment opportunities.
The various steps that the government has set through the Job Creation Law itself will clearly bring many benefits to the national economy, and also make Indonesia a more attractive investment destination and be able to encourage the birth of people’s welfare through increased employment opportunities.
In fact, academics have also agreed to assess that the policy does have enormous benefits for the country’s economy. Head of the Pancasila Study Center (PSP) of Gadjah Mada University (UGM), Agus Wahyudi said that the policy, also known as the Omnibus Law, needs to get full support from all people in Indonesia because it can encourage national economic growth.
Not without reason, because the Job Creation Law is an effort by the government to be able to create an equal partnership between MSMEs and medium-sized and large companies based on the application of the country’s basic philosophy, namely Pancasila.
Similarly, UGM Professor, Prof. Gunawan Sumodiningrat explained how the advantages of the Job Creation Law compared to the previous Manpower Law. It turns out that the comparison is very large, namely that now there will be an increase in economic competitiveness, then flexibility will be created for workers and entrepreneurs, to the ease of business processes and empowerment of villages or regions.
Meanwhile, Professor of Muhammadiyah University of Jakarta, Ibnu Sina, assessed that the set of regulations that the government has ratified is a red carpet for the realization of investment and development.
The red carpet in the context of the Job Creation Law has the value of legislative disruption, then carries a mission or orientation towards ease of doing business, the realization of government administrative bureaucratic reform and is also very pro-development.
One of the main focuses of the Job Creation Law is to encourage investment. Complex regulations and convoluted bureaucracy are often the main obstacles for investors, both domestic and foreign, to invest in Indonesia.
The Job Creation Law comes with simplifying licensing procedures and creating a risk-based licensing system. This means that low-risk businesses no longer require a long and complicated licensing process, so the time and costs required to start a business can be minimized. This step will attract more investors to come to Indonesia, because they can see a more friendly and efficient business climate.
In addition to simplifying regulations, the Job Creation Law also introduces incentives for investment in various strategic sectors. For example, tax incentives and easy access to land for certain industries that are considered important for national development.
With these incentives, sectors such as manufacturing, technology, and infrastructure are expected to grow faster. Increasing investment in these sectors will not only drive economic growth but also increase Indonesia’s competitiveness in the global market.
Moreover, the Job Creation Law places great emphasis on job creation. One of the main problems faced by Indonesia is the high unemployment rate, especially among the younger generation.
This law introduces flexibility in employment relations, allowing companies to more easily recruit and retain workers as needed. With increased investment and industrial growth, it is expected that many new jobs will be created, which in turn will reduce unemployment rates and increase people’s purchasing power.
Overall, the Job Creation Law is a very strategic and important step for the sustainability of the future of the Indonesian economy. Because the policy can continue to encourage healthy investment activities and climates and further expand employment opportunities.
With the Job Creation Law, it can bring Indonesia towards more inclusive and sustainable economic growth. Because the large and numerous benefits of this policy are not only felt by one party, but also by various parties such as business actors to the entire community of the country, especially those seeking jobs and even laborers.
The community can enjoy much wider employment opportunities and there is an increase in overall welfare. Therefore, all parties, starting from the government, the business world and also citizens need to work together to ensure that the Job Creation Law can be implemented properly and bring maximum benefits to the national economy.
*) Indomedia Gala Institution
