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The Government Guarantees Investment Security in Indonesia


By : Raditya Rahman )*

The government takes various ways to increase investment flows and create new job opportunities, including by making the Job Creation Act. The regulation is a form of legal certainty as well as a guarantee of investment security in Indonesia.

The Job Creation Act is a savior during the pandemic because there is an investment cluster. With various ease of investment, many will invest in Indonesia and the wheels of the economy will roll quickly. We can be Asian tigers after the pandemic.

However, the revision of the Copyright Law made investors afraid because they thought the law was canceled and meant that there was no longer any ease in investing. President Jokowi immediately rejected it and advised them that this law was still in effect, although revisions were required. So investors are expected to be calm. Indeed, the Constitutional Court (MK) ordered the revision of the law within 2 years but that does not mean canceling it.

In this way, investment projects will continue to progress and will not suffer because of the revision of the law. This is because the revision process cannot only be done in a day or two. So that investment projects cannot wait too long, and the government allows them to continue.

Indonesia is indeed a good investment target because thanks to the Job Creation Law there are many conveniences. Among them are licensing that is fast, easy, and can be online. No wonder many are interested in investing after there is legal certainty from the investment cluster in the Job Creation Act.

In addition, Indonesia also has quality human resources because many of the population are of productive age, so that when there is an investment project, investors can easily find workers. The youths are also enthusiastic about working because they are proud to be able to work in investment companies, as well as earn a living there.

Indonesia is also a favorite of many investors because it has abundant natural resources. So that it can be processed and the results are equally profitable, both for investors and the government. People don’t have to worry because investment is not a foreign method to take our natural wealth, but a collaboration to manage it, and there is a binding legal agreement so that there is a symbiotic mutualism.

Security guarantees for investing in Indonesia must indeed be given, so that foreign investors do not run away. Investors must be respected and prioritized because one of the characteristics of developed countries is the large number of investments. So that the government is indeed boosting investment so that we can rise during the pandemic as well as change the status of a middle country to a developed country.

With security guarantees for investing, even though the Job Creation Law is currently under revision, foreign investors will enter quietly and continue their various projects. The project value is also no joke because the government requires a minimum investment of 100 billion rupiah. Can you imagine how much profit the government will make if there are 100 investment projects in this country?

The Job Creation Law is still in the revision stage, on orders from the Constitutional Court, but that does not mean that the articles in it are aborted. The President has guaranteed the security of investment, especially foreign investment, because the Job Creation Law still has legal force in Indonesia. So, investors don’t have to worry about it.

)* The author is a contributor to Pertiwi Institute

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