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Job Creation Perppu Provides Ease of Business Permits


The Government Regulation in lieu of a Job Creation Law (Perppu) was enacted following a decision from the Constitutional Court Number 91/PUU-XVII/2020, namely as a form of improvement by replacing Law Number 11 of 2020 concerning Job Creation. This regulation apparently helps agricultural sector business actors in obtaining business.

The Ministry of Agriculture (Kementan) stated that the Job Creation Perppu really helps business people who want to take care of business licensing, especially in the agricultural sector.

The Perppu on Job Creation was issued due to the need to follow up on the Constitutional Court Decision, namely improvement through replacement of Law Number 11 of 2020 concerning Job Creation.

The Perppu was signed by President Joko Widodo. Particularly in the agricultural sector, there have been no changes to the substance previously stipulated in Law Number 11 of 2020 concerning Job Creation.

Head of the Legal Bureau of the Ministry of Agriculture Maha Matahari Eddy Purnomo at a press statement, said that several technical substances in the agricultural sector in the Job Creation Perppu were enacted to make it easier for agricultural sector actors to obtain permits, however still provide adequate protection for farmers in doing business. he asked.

Eddy assessed that the ease of licensing is realized through regulation of risk-based business licensing or the Online Single Submission Risk Based Approach (OSS-RBA) as stipulated in Government Regulation Number 5 of 2021 concerning Risk-Based Business Licensing.

The government through the Ministry of Agriculture has also provided business facilities such as in issuing organic certificates for organic rice by the Organic Certification Institute (LSO), it has facilitated micro, small and medium enterprises, in this case farmers, in the form of financial assistance in the certification process.

According to Eddy, the Perppu on Job Creation complies with the provisions of Article 22 paragraph (1) of the 1945 Constitution of the Republic of Indonesia due to a compelling crisis.

The crisis includes global dynamics caused by rising energy and food prices, climate change, and supply chain disruptions that have resulted in a decline in world economic growth and an increase in inflation which will have a significant impact on the national economy.

On a different occasion, Indonesian Vice President KH. Ma’ruf Amin said that Indonesia’s agricultural sector must not be complacent in addressing food matters. Because this sector must be able to provide food for 275 million people.

He himself quoted a statement from former US Secretary of State Henry Kissinger, who said, control food, then you will control the people, control energy, then you will control the nations.

For this reason, Ma’ruf Amin reminded that food availability and food price stability are critical issues that must always be managed properly, in line with the increasing trend of population growth.

Furthermore, he also reminded the agricultural sector to always be vigilant and anticipate together. This is because the agriculture sector has not fully recovered after being hit by the Covid-19 pandemic. Now the agricultural sector is also being hit by the problem of climate change and prolonged global geopolitical pressure, causing food prices to soar.

The condition of agriculture in Indonesia today has not changed much compared to during the Dutch colonial era. Where many agricultural products are sold in the form of raw materials.

On the other hand, we cannot turn a blind eye that the agricultural sector is facing additional challenges, such as climate change, a global factor impacting the Russia-Ukraine war. Where the two countries are producers of wheat and fertilizer. Thus, of course, this will greatly impact, especially for those who have a business in the fertilizer sector.

On a different occasion, the Minister of Agriculture (Mentan) Syahrul Yasin Limpo said that the challenges of the world of agriculture in the future will not be easy. He himself said that the situation was not ordinary darkness.

However, he believes that the condition of farmer groups in facing these challenges is quite good. In fact, local governments are also said to be competing to find solutions and provide support.

Syahrul said that his party would not ignore the prediction. He added that the ranks of the Ministry of Agriculture would be committed to dealing with the situation going forward.

Of course the agricultural business sector must continue to be developed so that Indonesia can survive the onslaught of the global crisis. One that can be developed is a start-up  in the agricultural sector. Even though the startup business development opportunity is still wide open.

Within the agricultural sector, of course, there is great potential for development. Where there are production lines, distribution to markets that have the potential to be developed through technology.

The agricultural sector is a business that has a broad target consumer, moreover everyone needs to eat, and stall owners also need raw materials such as vegetables.

Therefore, in order to facilitate business in the agricultural sector, the government passed the Job Creation Perppu to facilitate business establishment permits in the agricultural sector.

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