By: Kurnia Sandi )*
Investment is a motor that is able to move the economic sector in Indonesia, however, this investment activity must be followed by regulations that are able to accelerate licensing in building businesses, one of which is the implementation of the Job Creation Act.
Airlangga Hartarto as the Coordinating Minister for Economic Affairs said, “The implementation of the job creation law has resulted in an increase in investment realization in 2021.
On the occasion of the Press conference, Airlangga said, “BKPM has recorded an increase in investment realization in 2021 by 7.8 percent in January-September with an investment value of Rp. 659 trillion.
In addition, the number of new job creation opportunities was recorded at 912,402 workers, for the first quarter there were 311,793 absorbed workers, in the second quarter 311,922 workers were absorbed, and in the third quarter 288,687 workers were absorbed.
OSS has also issued 379,051 business licenses for the period August 4 to October 31, 2021. In detail, the dominant business licenses were granted to micro businesses as many as 357,893 licenses or 94.42 percent, small businesses as many as 14,818 permits or 3.91 percent, medium businesses with 3,783 permits. or 1 percent and large businesses with 2,557 permits or 0.67 percent.
Airlangga said the government must continue to strive for the operationalization of the Job Creation Act in all sectors, both at the center and in the regions, which include, among others, Operations of the Investment Management Agency (LPI) or Indonesia Investment Authority, Special Economic Zones (SEZ), Protection and Empowerment. UMKM and Cooperatives, ease of doing business in the field of taxation, implementation of business licensing and OSS activities, and employment.
He also said that the government together with the DPR RI will soon revise the Job Creation Law and the Law on the Establishment of Legislation, in the context of harmonization in the formation and implementation of the Job Creation Law in the future after the Constitutional Court’s decision. Furthermore, a letter to the leadership of the DPR RI to include the revision of the Law into the Priority Prolegnas for 2022.
Meanwhile, Mahfud MD as the Coordinating Minister for Political, Legal and Security Affairs (Menkopolhukam) has guaranteed that investment in Indonesia has legal certainty. Although the Constitutional Court has stated that the Job Creation Act is conditionally unconstitutional.
Sari Pramono as Chair of the Employment, Vocational, and Health Division of the Central Governing Body (BPP) of the Indonesian Young Entrepreneurs Association (HIPMI), said the Job Creation Law would create more job opportunities. The Indonesian workforce will also have a decent income. He considered that the Job Creation Law could create a conducive investment and business climate. Especially in the MSME industry, so that they can compete at the global level.
Pramono said that the ratification of the Ciptaker Law could reduce problems and obstacles for the industry. With the existence of the Job Creation Law, it is hoped that this regulation can attract investment interest in order to increase the capacity of the national MSME industry.
According to the Governor of BI, there are 4 (four) potential sectors to invest in Indonesia, namely the manufacturing, tourism, fisheries and infrastructure sectors. Perry explained that investment opportunities in the manufacturing sector focus on 3 Indonesian export commodities, namely automotive, textile and footwear. Meanwhile, investment opportunities for the tourism sector are focused on developing priority destinations for development and branding of Indonesian tourism (Lake Toba, Mandalika, Labuan Bajo, Borobudur, Joglo Semar, Bali, Jakarta, Banyuwangi, Bromo and the Riau Archipelago.
As for the fishery sector, investment opportunities are open, especially in eastern Indonesia for the development of aquaculture and supporting processing industries, given the huge potential of Indonesia’s natural resources. Meanwhile, investment opportunities in the infrastructure sector at the national level refer to the list of national strategic projects published by the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), consisting of 223 projects and 3 programs.
The Job Creation Law can create a conducive investment and business climate. Especially in the MSME industry, so that MSME products can compete at the global level.
In order to bring investors to Indonesia, of course we need a formula that allows investors or prospective entrepreneurs to have the convenience of managing all permits to invest, this convenience will strengthen investment certainty. This revision of the Job Creation Law will further strengthen investment certainty for investors, because investing in Indonesia is safe and provides convenience.
)* The author is a contributor to the Press Circle and Cikini Students
