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The Job Creation Law Advances the Business World by Facilitating Licensing

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The establishment of a Government Regulation in lieu of a Job Creation Law (Perppu) , which has now been passed into a Law, is capable of advancing the business world by continuing to provide convenience for obtaining permits . Of course, this is very rightful for actors in the business world, including later it will be able to improve a lot of people’s welfare through the creation of many jobs.

The Government of the Republic of Indonesia (RI) itself has implemented that in 2023 there will be a budget deficit setting of less than 3% (three percent) and this indeed then relies heavily on investment activities from investors. Therefore, there is a target that by 2023 there must be investment activities of up to IDR 1,200 trillion.

Regarding this matter, the Coordinating Minister (Menko) for the Economy, Airlangga Hartarto said it was very important to have legal certainty so that it could actually be held and guaranteed. However, the conditions were not yet possible when the previous Ciptaker Law was deemed conditionally unconstitutional by the Constitutional Court ( MK) Decision.

So, of course with the issuance of Perppu Number 2 of 2022 concerning Job Creation, it is hoped that legal certainty can be filled and this will become the implementation of the Constitutional Court’s Decision. Later, the Perppu Ciptaker was passed into law by the DPR on March 21, 2023 .

The Coordinating Minister for the Economy continued that the issuance of this Perppu was in line with statutory regulations and was guided by the Constitutional Court Decision Number 38/PUU-VII/2009.

Meanwhile, the Director General for Development of Industrial Relations and Social Security (PHI & Social Security) of the Ministry of Manpower (Kemnaker RI), Indah Anggoro Putri stated that the background to the establishment of the Job Creation Perppu was the need for an immediate response to be able to anticipate the impact of global dynamics through the creation policy standards.

Not only because there have been many pressing crises, Academician who is also a lecturer at the Pelita Harapan University (UPH) Postgraduate Program, Emrus Sihombing, considers that the contents of the Job Creation Perppu contain a great deal of convenience in terms of business licensing.

With the convenience of business licensing, there will be greater opportunities for the emergence and development of the number and various types of micro, small and medium enterprises ( SMEs ) .

Emrus also added that with the enactment of the Job Creation Perppu, the bureaucratic procedures and flows for setting up a business field would be much simpler than before. Individual PT.

In addition, the number of members forming cooperatives as a business sector for advancing the people’s economy has been greatly reduced, not as much as before the issuance of this Perppu Ciptaker. MSME capital assistance from the government is one of the main focuses in the Perppu Ciptaker. Even with the Perppu Ciptaker, the business climate in the country is in favor of MSMEs .

Emrus added that the Job Creation Perppu was clearly able to build new optimism in employment and also for economic growth in Indonesia even significantly going forward. Also included, with the existence of these rules, it is able to build legal certainty, including the imposition of measurable sanctions.

The Ciptaker Law was formed with the aim of creating and increasing employment by providing convenience, protection and empowerment of national industry and national trade, including the defense industry, as well as increasing investment as one of the keys to economic growth. This Perpu is expected to provide legal certainty.

In the same vein, the Head of the Legal Bureau (Kaburo) of the Ministry of Agriculture (Kementan RI), Maha Matahari Eddy Purnomo said that the Job Creation Perppu can indeed facilitate business permits for business actors. According to him, actually the Perppu has not undergone many substance changes because in fact the problem in the Constitutional Court is only procedural in nature, and not related to substance.

According to him, this convenience is realized through regulation of risk-based business licensing or online single submission risk based approach (OSS-RBA). This has been regulated in Government Regulation (PP) Number 5 of 2021 concerning Risk-Based Business Licensing.

Business actors in Indonesia really look forward to and want convenience in business licensing. Therefore, to be able to make this happen, the Government then stipulated the Job Creation Perppu which has now been ratified as a Law in order to advance the business world and the economic sector in the country.

)* The author is a Citaprasada Institute Contributor

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