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The Job Creation Law is Considered Very Beneficial for Small Business Actors (UMKM)


Pelita Harapan University Postgraduate Lecturer, Emrus Sihombing said that with the existence of the Job Creation Law, it can increase the number and business fields. Downstreaming of business fields in all sectors will naturally occur in an accelerating manner (acceleration).

“Thus, the per capita income of all Indonesian people will continue to increase from year to year. Therefore, in my opinion, it is no exaggeration for Indonesia to become one of the world’s extraordinary economic powers in 2035,” said Emrus Sihombing in Jakarta, Wednesday (1/3).

He also considered, when viewed carefully, the contents of the Citapker Law are full of ease of business licensing, so that opportunities arise and develop the number and development of various fields of Micro, Small and Medium Enterprises known as MSMEs.

“The bureaucratic procedures and flow of establishing a business field are very, very simple. The establishment of a Limited Company (PT), for example, can only be done by one person or referred to as an “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 birth of the Ciptaker Law. UMKM capital assistance from the government is one of the main focuses in the Ciptaker Law,” he said.

Even with the existence of the Ciptaker Law, the business climate in the country is in favor of Micro, Small and Medium Enterprises (UMKM). Micro Enterprises are able to develop into Small Businesses.

“Meanwhile, small businesses are moving into medium-sized businesses, which in turn, medium-sized businesses are advancing into big businesses. As a result of this, new Micro Enterprises have sprung up. And so on,” he added.

The consequence of the development of changing business levels from Micro Enterprises to Big Businesses in various business fields, is not only being able to absorb more workers in various fields of skills and talents, but also being able to create new jobs. It can even be predicted that Indonesia will have a shortage of manpower if all components of the nation support and implement the Ciptaker Law, compared to before the Ciptaker Law. The implementation of the Ciptaker Law can have an impact on Indonesia experiencing a shortage of workers in all fields and levels of business/business, one of the reasons is the migration of Indonesian citizens from applicants or workers to accepting workers or business owners/entrepreneurs. It’s very realistic.

The government’s seriousness regarding the Ciptaker Law in favor of socio-economic welfare for all Indonesian people can be seen in the contents of government regulations (PP) and presidential regulations (Perpers) as derivative regulations. A number of these PPs and Presidential Regulations have been prepared by taking into account, accepting and considering all the aspirations of the Indonesian people in at least 11 main areas in the Ciptaker Law, namely: (1) Improving the Investment Ecosystem and Business Activities; (2) Business Licensing; (3) Employment; (4) Ease, Protection and Empowerment of Cooperatives and MSMEs; (5) Ease of Doing Business; (6) Research and Innovation Support; (7) Land Procurement; (8) Economic Zones; (9) Central Government Investment and Acceleration of National Strategic Projects; (10) Government Administration; and (11) Guidance and Supervision and Imposition of Sanctions.

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