President Jokowi: Job Creation Law Aims to Create Better Investment Climate
The newly-enacted Job Creation Law aims to create a better business and investment climate for all business sectors, including MSMEs and foreign investors, according to President Joko “Jokowi” Widodo.
“Overlapping regulations and complex procedures are streamlined, red tapes in licensing services are eliminated, and illegal levies that have hindered business and investment are eradicated while maintaining our commitment to protect the environment,” the President said in his virtual remarks at the 2020 APEC CEO Dialogues, Thursday (19/11).
The President pointed out that the Job Creation Law will bring significant impacts on the business and investment climate in the country, as follows:
First, the business and investment licensing process becomes simpler and faster. The requirements for investment are simpler than before. Micro and small businesses no longer need licensing, just a simple registration process.
Second, illegal levies and corruption are eradicated by integrating the entire licensing process into an electronic licensing system through the OSS (Online Single Submission) system.
Third, business and investment activities are easier. The process to establish a limited liability company is easier without any minimum capital requirement. Procedures for patent and brand registration are also accelerated. Procurement of land and area for public interest and investment is much easier.
Fourth, investment in special economic zones, free trade areas, and free ports is easier and more attractive with various facilities and incentives. Business licensing services in those areas will be carried out within hours with fiscal facilities integrated into the OSS system.
Fifth, Indonesia also establishes a sovereign wealth fund which will manage and place state funds and/or state assets directly or indirectly, and will collaborate with third parties.
Sixth, the Job Creation Law protects and enhances the role of workers in supporting investment in Indonesia, including by providing legal certainty in regulating minimum wages and severance pay.
The President further said that the Government is finalizing the implementing regulations of the Law.
“We will finalize the implementing regulations promptly, so that various regulatory reforms and de-bureaucratization can immediately benefit business sectors. (The Job Creation Law) is also expected to become leverage for Indonesia’s economic growth in the future,” the President said. (FID/UN) (RI/MUR)