The Job Creation Law will become a platform to make it easier for investors to enter Indonesia. This is because this law has an investment cluster, which will cut bureaucracy so that foreign investors want to do business in Indonesia. With so many investments it will be profitable because it adds to the country’s foreign exchange.
Investment is one way for a business to survive, because with money from investors, production at the factory will start again and workers can be paid again. But unfortunately, foreign investors have so far chosen neighboring countries to invest, due to the lengthy bureaucracy. This is very unfortunate because actually Indonesia is a potential market.
To overcome this , the DPR passed the Job Creation Law in March 2023. In this law, there is a guarantee of ease in investing for foreign investors. There has been a change in the terms of business in Indonesia. These include aspects of ease of doing business, empowering MSMEs, accelerating national strategic projects, increasing workers’ rights, and improving the investment system.
The ratification of Government Regulation in Lieu of Law (Perppu) No. 2 of 2022 concerning Job Creation to become the Job Creation Law (UU Ciptaker) by the DPR is considered to provide legal certainty for the economic sector and workers in Indonesia.
Nindyo Pramono, a legal observer from Gadjah Mada University in Yogyakarta, said that by legally becoming a law, the regulation is binding and it is hoped that it will be the answer to the challenges of the current global economic dynamics.
Nindyo added that an important benefit from the passage of the Job Creation Law is related to the ‘ease of doing business’ in Indonesia. Before the regulation of the Job Creation Law was enacted, the ease of investment in Indonesia, he explained, was far from being far from competing with countries in the ASEAN region. This Job Creation Law has accommodated the need for economic growth and investment flows into Indonesia.
When the government is serious about improving the investment system, the first thing to change is the bureaucracy. Foreign entrepreneurs want to enter Indonesia because there is a guaranteed ease in obtaining permits. The process only takes about a week. Much different from before, which had to wait for months.
This slow process eventually made foreign investors give up on cooperating in Indonesia. Especially when they were going to speed things up, they were even asked to make facilitation payments by unscrupulous persons. However, when licensing can be done faster, and done online , they will discourage their intention to leave Indonesia.
For foreign investors, time is money . So they really appreciate the rules in the Job Creation Law which accelerate licensing. They are also happy with the innovation of online legality management . So that you don’t have to meet unscrupulous employees who like corruption. Indirectly, the Job Creation Law has also eradicated KKN in Indonesia.
When foreign entrepreneurs enter Indonesia, local entrepreneurs can provide cooperation proposals. They already have a product that has enough name in this country. With funds from foreign investors, local MSME businesses can rise again. Because there is an injection of capital from them.
When Indonesian MSME entrepreneurs rise again, they can breathe a sigh of relief. Because you don’t have to be confused looking for loans without collateral, even being trapped by cruel moneylenders. However, they are able to produce goods again and market them, thanks to funds and an injection of motivation from foreign entrepreneurs.
This cooperation is clearly beneficial and cannot be called colonialism, as some people have accused. Becauseforeign entrepreneurs and local entrepreneurs have their own strengths. It is impossible for foreign businessmen to colonize, because they are bound by cooperation agreements with local businessmen. The Coordinating Minister for the Economy Airlangga Hartarto stated that the Job Creation Law which is complete with its implementing regulations will provide certainty, ease of doing business, and cut lengthy licensing for investors so as to increase confidence.
In a sense, the Job Creation Law will attract many investors because they are given certainty in doing business in Indonesia. If there is a law as a legal umbrella, they will enter this country optimistically, because they are not afraid of a long and tiring bureaucracy. Moreover, the licensing process also takes only a short time and can be done online, so it saves time and costs.
According to research from a survey institute, Indonesia occupies the 4th position of countries worldwide, as a favorite place to invest, for countries in Europe and America. This is very encouraging because this country is considered the right place to invest capital for foreign entrepreneurs.
Investment from Europe and America is of course of high quality because they don’t play around in investing, it can be up to billions of rupiah. Mutually beneficial cooperation will occur so that the country’s economy revives after being hit by a pandemic storm and investors also receive sizable profits.
The Job Creation Law is a platform to make it easier for foreign investors to enter Indonesia because it has an investment cluster. With this convenience, foreign investment will be more widespread and make the world of business and investment more dynamic. Indonesia’s economy will be more advanced.
)* The author is a contributor to Nusantara Reading Room
