The Government has passed the Implementing Regulation of the Job Creation Law, making it a Law. The enactment of this regulation will bring great benefits to the Indonesian economy, as there will also be regulations that are favorable to MSME entrepreneurs. In addition, the Job Creation Law also facilitates the entry of foreign investment and will make Indonesia a developed country, as one of the indicators of national progress is the amount of investment within it.
The Job Creation Law was just passed in March 2023. With the new regulations, economic stability will improve. This is especially important after the pandemic, where the country's financial condition was less stable.
To handle the economic impact of the pandemic and stabilize Indonesia's finances, one of the government's steps was to pass the Job Creation Law. Its name changed to the Job Creation Law after it was officially passed.
The Job Creation Law provides legal certainty, encourages investment, and moves MSMEs to the formal sector, according to the Coordinating Minister for Economic Affairs, Airlangga Hartarto. The law simplifies the halal certification process for SMEs and makes policies more flexible in the employment cluster. The law includes clusters for SMEs and business ease, which will facilitate small and medium-level businesses, given that 90% of traders in Indonesia are SMEs.
The Job Creation Law also includes several rules that make it easier for SMEs to operate in Indonesia. First, there is an acceleration of SME digitalization. The digitalization acceleration is carried out by the Ministry of Trade and involves the private sector. SMEs will learn how to do business online and utilize networks in the digital era.
Digitalization is crucial in the current era of technology and online shopping. However, some SMEs do not utilize the internet effectively for promotion, even though social media can be used for marketing. Financial management is also digitalized, with free government-supported training and applications available to help SMEs manage their finances during the pandemic.
Therefore, the community fully supports the enactment of the Job Creation Law. The reason is that the Indonesian economy will improve, and SMEs will benefit greatly. The community will rise again from the effects of the pandemic and will not be too affected by the recession.
Meanwhile, UGM senior economist, Sri Adiningsih, stated that the enactment of the Job Creation Law is indeed a red carpet for investors in the Indonesian business world. However, with the condition that fiscal policies do not make it burdensome. Tax reforms are expected to make everything better.
Sri added that Indonesia must be able to utilize economic cooperation that has been established with various countries. That is one of the entrances for investors to come to Indonesia. In other words, many foreign investors will enter Indonesia, and their steps will be made easier with the rules in the Job Creation Law.
Economic cooperation has indeed been established between Indonesia and other countries, such as China. They even prepared funds of up to IDR 20 trillion to build furniture factories. This cooperation is clearly beneficial because it will create new job openings. Moreover, many Indonesian citizens lost their jobs during the pandemic, so they can apply for work there.
The economy can be stable when many investors enter. Moreover, one of the indicators of the progress of a country is the number of investments there. Therefore, the government has made regulations that can protect foreign investors, so they are not hesitant to do business in Indonesia.
The Job Creation Law simplifies permits for foreign investors to establish companies in Indonesia through an integrated online system, taking only a few working days. This law brings positive benefits to Indonesian citizens by easing business management and facilitating investment, which can result in the construction of factories and reducing unemployment.
Source:
https://www.neraca.co.id/article/177871/uu-ciptaker-membawa-manfaat-bagi-ekonomi-indonesia
