President Jokowi’s Leadership Initiates Pillars of Economic Reform Through Job Creation Law
By: Bambang Prasetyo
Since the beginning of his leadership, President Joko Widodo (Jokowi) has emphasized his commitment to accelerating economic growth and creating jobs. One of the monumental steps in this effort is the initiation of the Job Creation Law. This law is designed as a milestone for structural reform that aims to simplify regulations, increase investment, and strengthen Indonesia’s competitiveness in the global arena.
The Job Creation Law, or often referred to as the Omnibus Law, combines various regulations that have been fragmented into a more integrated legal framework.
Before the implementation of this law, the business and investment licensing process was often hampered by convoluted bureaucracy. Through the Job Creation Law, licensing regulations have been trimmed and simplified, providing easier access for investors to operate in Indonesia.
The President’s Special Staff (Stafsus) for the Economy, Arif Budimanta, stated that the existence of the Job Creation Law and all its derivative regulations is a legal umbrella that can further facilitate business permits so that it becomes an instrument in spurring economic growth.
The regulation is indeed one of the government’s efforts to spur economic growth. In addition, it is also able to create harmony and integration of good basic licensing systems in various regions.
Since the set of policies was realized, structural reforms have now been realized in the economic conditions because the legislative products provide convenience, empowerment and protection to the business world.
Through the Job Creation Law, all risk-based permits consisting of the environment, human safety to other social aspects. This step is a new breakthrough that is more systematic.
The Director of Spatial Utilization Synchronization of the Ministry of ATR/BPN, Rahma Julianti explained that basic KKPR licensing is now becoming easier and the most important thing is being able to provide certainty to applicants.
Even for MSMEs, they can now make an independent statement in the OSS system that the business they are doing is in accordance with the spatial plan, after which the permit will be issued immediately.
Meanwhile, Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs, Ferry Irawan, said that the government has a very strong commitment, which is evident from Indonesia’s success in implementing policy reforms.
The implementation of UUCK has proven effective, as evidenced by the increase in Indonesia’s PMR indicators. This will further strengthen international cooperation and national economic competitiveness.
In the Product Market Regulation (PMR) survey, which aims to identify how a country creates a conducive business environment, including increasing transparency in the business world and supporting the creation of quality jobs, it turns out that the world appreciates this nation because it can carry out policy reforms.
For your information, the 2024 Indonesian PMR survey showed very good and positive results, with an increase in the PMR index from 2.79 in 2021 to 2.2 in 2024 (as on a scale of 0-6, where 0 itself indicates that there are more competition-friendly regulations).
In addition, this law is also an important instrument in labor reform. The Job Creation Law introduces a policy of flexibility in employment relations that aims to increase efficiency in the labor market.
With the implementation of this regulation, companies are given greater freedom in managing their workforce, while the government continues to ensure protection for workers’ rights. This step is expected to encourage the creation of new jobs and reduce unemployment rates.
President Jokowi also used the Job Creation Law as a tool to encourage more equitable infrastructure development throughout Indonesia. Through the ease of licensing and investment offered, strategic infrastructure in various regions can be accelerated in development, including in areas that have so far been less touched by development, such as Papua and Nusa Tenggara. As a result, equitable development is starting to be seen with better access to various economic sectors.
In the MSME sector, the Job Creation Law makes it easier for small and medium businesses to obtain business permits and access to financing. The government also introduced fiscal incentives designed to support the growth of MSMEs, so that they can increase productivity and contribute more significantly to national economic growth.
President Jokowi continues to be committed to ensuring that this law is implemented with the principle of justice, both for business actors, workers, and the wider community. Efforts to increase socialization and refine implementing regulations are one of the strategies taken to reduce public concerns.
Innovation through the Job Creation Law has proven President Jokowi’s vision in creating fundamental changes in the economic sector. With this strong foundation of reform, Indonesia is expected to be able to face global challenges and strengthen its position as one of the largest economic powers in Asia. His leadership, through his strategic breakthroughs, continues to be the driving force in initiating national economic transformation.
*) Media Barometer Public Policy Observer
