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Job Creation Law Stimulus to Increase the Number of Entrepreneurs and Investment

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By : Nada Mansyur )*

The Job Creation Law (UU) is one of the Indonesian government’s strategic policies to improve the investment climate and improve the ease of doing business in Indonesia. One of the significant impacts of this law is an increase in the number of entrepreneurs, including women.

The Job Creation Law, which was passed in 2020, was designed to simplify regulations and speed up the business licensing process in Indonesia. One of the important components of this law is the simplification of business licensing procedures through the Online Single Submission (OSS) system, which allows entrepreneurs to obtain a Business Identification Number (NIB) more easily and quickly.

For women who want to start a business, the ease of licensing is a special attraction. Not only that, the Job Creation Law also provides various incentives for business actors, such as easier access to financing, support for small and medium enterprises (SMEs), as well as training and mentoring programs. All of this is a motivating factor for women to dare to start and develop their own businesses.

The increase in the number of women entrepreneurs in recent years cannot be separated from several factors, including increasing access to education and training aimed at women, increasing awareness of gender equality, and developments in digital technology which have opened up new opportunities for women to run businesses.

One interesting phenomenon is the number of women who are micro business owners and have registered NIB. This shows that women are not only active in the business world, but also understand the importance of legality and compliance with regulations.

There are several factors that encourage women to develop micro businesses, namely time flexibility, low initial capital and support from government programs. This encourages women to register their businesses officially through the NIB.

The benefits of business licensing policy reforms as stated in the Job Creation Law are now starting to be felt. Through the  digital one single submission system , convenience, empowerment and protection are now created for MSMEs.

Secretary of the Task Force for the Acceleration of Socialization of the Job Creation Law, Arif Budimanta, said that the digital one single submission system aims to ensure that all business actors have equal access to services. So that not only large businesses, but also micro and small businesses are paid attention to.

Arif said that currently many women are micro business owners. They have even registered a business permit in the form of a business identification number (NIB).

This is according to data revealed by the Chair of the Substance Synergy Working Group for Socialization of the Job Creation Law Task Force, Tina Talisa. He said the majority of business owners registered on the OSS RBA website were women.

Around 9.9 million NIBs have been issued. As many as 96 percent are micro businesses and 2 percent are small businesses. NIB has a big impact on progress and is a way to move up in class for micro businesses. It may not immediately become big, but with NIB, business actors can get capital loans, take care of halal certification, and take part in auctions from the government.

In West Kalimantan (Kalbar) there are 250 women who also work as entrepreneurs in West Kalimantan, taking part in workshops and coaching clinics regarding the ease of business licensing. They are members of the Indonesian Women’s Association of Muslim Scholars in the West Kalimantan region. This socialization is related to the Job Creation Law, by the Job Creation Task Force, in Pontianak, West Kalimantan. 

Deputy Chair III of the Job Creation Law Task Force, Raden Pardede, said the strategic steps were to transform the business licensing bureaucracy. The aim is to increase productivity and contribution to the national economy. Also creating new jobs and strengthening the economic sector.

Indonesia has the aspiration of becoming a prosperous country that has a high per capita income of more than USD 25,000 by Golden Indonesia 2045, so it requires extraordinary efforts to get out of the middle income trap .

One thing that has been improved is all matters relating to business licensing so that it is easier, faster and more certain, that is the philosophy of the Job Creation Law.

Ease of business permits is a strategic factor and its impact strengthens public and investor confidence. Also expanding the market and increasing competitiveness. What is also important is the growth of MSMEs which can increase the contribution to the national economy.

In order for a country’s economy to grow, MSMEs are needed to level up, so they can absorb more workers and create new jobs.

In this case, it is the processing of business permits, including the issuance of NIB, halal certification, BPOM, and PIRT and other permits including Business Licensing to Support Business Activities (PB-UMKU).

The increase in the number of women entrepreneurs, especially in micro businesses, is a positive development for the Indonesian economy. The Job Creation Law, with all the conveniences and incentives it offers, has become a significant driving factor. However, challenges remain, such as the need for increased access to financing, further business education, and continued support from government and the private sector.

In the future, developing more inclusive and sustainable policies will be essential to ensure that women can continue to develop as entrepreneurs, not only on a micro scale, but also on a larger scale. Support from various parties will be key to achieving this goal.

)* The author is a public policy observer

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