Through the Job Creation Law, Regulatory Transformation is Realized in Indonesia Thanks to President Jokowi
By: Ahmad Syahrial
Since the beginning of his leadership, President Joko Widodo (Jokowi) has shown a strong commitment to carrying out economic and bureaucratic reforms in Indonesia. One of the peaks of this reform effort was the ratification of the Job Creation Law (UUCK).
This law is present as an important instrument in accelerating regulatory transformation, overcoming overlapping regulations, and creating a more efficient and pro-investment bureaucratic system.
The Job Creation Law is a real symbol of President Jokowi’s courage in overhauling the regulatory system that has been considered rigid and burdensome. Before the UUCK, many business actors complained about the slow licensing process and complicated bureaucracy.
Various unsynchronized regulations between one institution and another often hamper economic growth and reduce Indonesia’s competitiveness in the global market. With UUCK, President Jokowi has succeeded in simplifying regulations that have so far hampered the pace of investment.
One of the main breakthroughs in UUCK is the implementation of a risk-based licensing system. Through this system, low-risk businesses no longer have to go through a long and complicated licensing process.
This policy accelerates the pace of investment, especially in strategic sectors such as manufacturing, technology, and the creative economy. With the simplification of licensing, these sectors can now develop more rapidly, contributing to increased employment and economic growth.
In addition, UUCK also plays an important role in encouraging the foreign investment sector. Through the revision of various regulations that have so far limited foreign ownership in several strategic sectors, UUCK provides greater space for foreign investors to invest their capital in Indonesia.
This not only increases the flow of investment in, but also opens up opportunities for collaboration between domestic business actors and global companies, which ultimately strengthens the competitiveness of the national industry.
President Jokowi also used UUCK to accelerate infrastructure development throughout Indonesia. Before UUCK, infrastructure projects were often hampered by long and complicated licensing procedures.
With the implementation of UUCK, various important infrastructure projects such as toll roads, airports, ports, and other transportation networks can be completed faster. This has a direct impact on increasing connectivity between regions, which opens up new economic access and supports equitable development.
In the employment sector, UUCK offers greater flexibility for companies in recruiting and managing workers. These more adaptive employment regulations make it easier for companies to adjust to changes in the global market, while still protecting the basic rights of workers. Thus, companies can operate more efficiently, while unemployment rates can be reduced by creating new jobs.
Regulatory reforms realized through UUCK also have a positive impact on the growth of micro, small, and medium enterprises (MSMEs). UUCK provides convenience in managing business permits for MSMEs, as well as better access to resources and capital.
Through government incentives and support, MSMEs can now grow faster and contribute significantly to the national economy. With more and more MSMEs successfully moving up a class, Indonesia’s economic structure is getting stronger and more sustainable.
The main objective of the government is to ensure speed in serving and granting permits. Therefore, the organizational structure is now simplified to be functional according to competence.
Secretary of Kemenpan-RB, Rini Widyantini explained that regulatory simplification is taking place, one of which is through the Job Creation Law which makes the bureaucracy cleaner, cuts permits and saves state finances as a national strategy for preventing corruption.
Meanwhile, the Head of the Construction Safety Management System Implementation Sector of the IKN Infrastructure Development Implementation Task Force, Trisasongko Widianto, assessed that the implementation of the Job Creation Law is a new hope for the Indonesian nation, especially in terms of investment.
The issuance of UUCK aims to carry out structural reforms and accelerate economic transformation, which will facilitate business and increase investment.
Not only that, but on the other hand, President Jokowi also made UUCK an instrument to increase Indonesia’s competitiveness at the global level. The reforms carried out through UUCK have made Indonesia a more investment-friendly country.
This is reflected in the increasing interest of foreign investors to invest their capital in Indonesia, which indirectly strengthens Indonesia’s position as one of the largest economic centers in Southeast Asia.
With the breakthroughs presented by UUCK, regulatory transformation in Indonesia has been successfully realized. This success is one of the main achievements in President Jokowi’s administration, which continues to strive to make Indonesia a country with modern, efficient, and highly competitive regulations in the global arena. Thanks to UUCK, Indonesia is now on the right track towards a brighter and more inclusive economic future.
*) Public Policy Observer, Jakarta State University
