By: Deka Prawira)*
The government guarantees investment certainty in Indonesia even though the Constitutional Court (MK) has decided that the Job Creation Law must be revised. The government asks investors not to panic because investment certainty will remain valid and binding.
The Job Creation Law is a bold policy by the Government to increase investment in Indonesia. The public appreciates the birth of this regulation because it changes various regulations in Indonesia.
A few weeks ago, the Constitutional Court issued a ruling that the job creation law must be amended. This is certainly surprising because there are so many articles in the law and it is impossible to change all of them, and there may be minor improvements. The Constitutional Court’s decision also affects foreign investors because they think that foreign investment will return to the way it used to be, full of bureaucracy.
President Jokowi asked foreign investors to remain calm because even though the Constitutional Court asked the government to revise the Job Creation Law, the law remained in effect for 2 years. As long as the government and the DPR revise it. So, it will not interfere with the investment process. He ensures that the security and smoothness of investment will be maintained.
In a sense, although the Constitutional Court requested that the Job Creation Law be revised, it does not mean that all the articles in it are considered wrong, because we do not yet know which articles were changed. It could be that the articles that regulate investment are not changed because in fact it will facilitate the investment process in this country. When the investment article is changed, of course it will experience a setback.
When the Job Creation Law is in the process of being revised, investments that have already entered Indonesia will continue. The amendments will only be announced in 2 years because the revision process is long, long, and complicated, because the president and the DPR and the ministers will meet again to revise this law. While waiting for the announcement, existing investment projects will not be discontinued.
President Jokowi’s statement regarding investment security guarantees in Indonesia is certainly a relief because foreign investment projects will not be disrupted after the Constitutional Court’s decision regarding the revision of the Job Creation Law. Because this project is worth billions or even trillions of rupiah. Don’t let the government suffer any losses because of the project’s failure.
During the pandemic, the government has intensified investment, especially foreign investment, because we need fresh funds to build the country but do not want to increase our debt to the IMF. Therefore, foreign investment is the right choice. Mutually beneficial cooperation will make the country’s financial condition gradually improve.
Foreign investors are also relieved that they can continue with their plans to invest in Indonesia. First, in the Employment Creation Act (old version) it is stated that investment will be facilitated, there is even a special investment cluster. So that the licensing process will be facilitated and accelerated, and can be managed online.
This easy rule makes investors finally want to enter Indonesia, after previously canceling because they don’t want to be bothered by misleading bureaucracy. They also do not want to bribe people to take care of licensing. The Job Creation Law has proven to be beneficial not only for foreign investors but also for the government, because it eliminates corrupt practices.
The revision of the Job Creation Law is still in process and is expected to be completed in 2 years. While waiting, this law is still valid and will not just be canceled, that’s according to the rule of law in Indonesia. Therefore, investors are expected not to worry and continue the process of investing in Indonesia.
)* The author is a citizen/contributor of Citizen Journalism
