President Jokowi’s Performance Achievements, Encouraging an Economic-Driven Investment Climate with the Job Creation Law
By: Anita Permata Sari
Since being inaugurated as President of the Republic of Indonesia, Joko Widodo (Jokowi) has consistently placed economic growth as the main priority in every policy he takes.
One of the important breakthroughs in his administration was the ratification of the Job Creation Law (UU Cipta Kerja), also known as the Omnibus Law, designed to create a more competitive and sustainable investment climate, while also being a catalyst for national economic growth.
The Job Creation Law brought significant changes to the world of business and investment in Indonesia. Before this law was implemented, regulations governing business and investment licensing were often too complicated and burdensome for business actors, especially foreign investors.
The long licensing process, complicated bureaucracy, and overlapping regulations often made Indonesia lose out to other countries in attracting investment. Through the Job Creation Law, President Jokowi has succeeded in simplifying these regulations, paving the way for faster and easier investment flows.
One of the main aspects regulated in the Job Creation Law is the simplification of the business licensing process through a risk-based licensing system (risk-based approach). With this approach, businesses that are considered low-risk can obtain business permits more quickly and without going through complicated procedures.
Coordinating Minister for Economic Affairs, Airlangga Hartarto emphasized that the role of the Job Creation Law itself is indeed very important, especially in relation to investment, because through this policy, Indonesia can create a more conducive investment climate while encouraging additional employment opportunities.
Meanwhile, Economic Observer, Dendi Ramdani said that the Job Creation Law that is currently in effect can increase competitiveness and encourage Indonesia to become a country with high income.
Through this set of regulations, Indonesia is determined to become a more prosperous country and be able to improve the welfare of its people, because it also regulates employment flexibility.
Similarly, Professor of Gadjah Mada University (UGM), Prof. Gunawan Sumodiningrat also said that the Job Creation Law does have many advantages, including increasing economic competitiveness, flexibility for workers and entrepreneurs, ease of business processes and empowerment of the village and regional economy.
In addition to simplifying licensing, the Job Creation Law also strengthens investment protection by providing clearer legal certainty to investors. This is reflected in the reduction of investment barriers in sectors that were previously difficult to reach, such as mining, energy, and forestry.
President Jokowi has actively pushed for a revision of regulations that limit investment in these sectors, thereby opening up wider opportunities for domestic and foreign investment. With better legal certainty, investor confidence in Indonesia’s economic prospects has increased, as reflected in the entry of a number of large investments in recent years.
President Jokowi also made the Job Creation Law an important instrument in increasing the competitiveness of the Indonesian workforce. Through labor reforms regulated in the Job Creation Law, companies are given more flexibility in recruiting and managing their workforce.
This step provides dual benefits: on the one hand, companies can operate more efficiently and adaptively, while on the other hand, new jobs are created, which ultimately helps reduce unemployment rates.
In addition, the Job Creation Law also encourages more equitable infrastructure development, especially outside Java. With the ease of licensing and investment provided, various infrastructure projects such as toll roads, ports, and airports can be realized more quickly. These projects not only open up new economic access, but also reduce development disparities between regions.
In the global context, economic reforms triggered by the Job Creation Law have increased Indonesia’s appeal in the eyes of international business actors. Indonesia is now seen as a country with stable growth prospects and increasingly investment-friendly regulations. This is clear evidence of President Jokowi’s efforts to direct Indonesia towards a more advanced and highly competitive economy on the global stage.
With these achievements, the Job Creation Law has become one of the greatest achievements of President Jokowi’s leadership in encouraging investment as the main driver of economic growth. This policy has succeeded in creating a strong foundation for a more inclusive and dynamic future for the Indonesian economy.
*) Economic and Business Observer Bahana Sekuritas
