The Implementation Of The Copyright Law Is Expected To Increase The Competitiveness Of The Indonesian Market

Illustration (Photo: Doc. Antara)

JAKARTA - Associate Researcher Center for Indonesian Policy Studies (CIPS) Ronald Eberhard Tundang assesses that the implementation of the Job Creation Law still needs improvement even though it has a positive impact on investment realization.

"The implementation of this law is expected to increase the competitiveness of the Indonesian market towards investment so that investment realization can be used as a benchmark," he said in a written statement in Jakarta, Friday.

The Job Creation Law, according to him, contributes positively to increasing investment by providing several things to business actors, such as the ease of business permits through the implementation of risk-based licensing that assesses the impact on the environment and society.

In addition, the implementation of this law also allows the opening of foreign investment opportunities in more sectors and reduces investment barriers such as the obligation of joint ventures with local companies as well as domestic production obligations for patents.

"The job creation law also makes it easier to establish a PT by removing the minimum capital requirement, accelerating the process of issuing patents, brands, and acquiring land for investment," he said.

The implementation of this law also provides incentives for investment in Special Economic Zones, MSMEs, as well as investors in priority industries, which include income tax reductions, exemption from import duties, and/or non-fiscal incentives in the form of infrastructure provision and guarantees for the availability of energy and raw materials.

Nevertheless, Ronald assessed that improvements were still needed in the implementation of the Omnibus Law by the regional government, especially regarding integration with Online Single Submission (OSS) services at the center which must be carried out uniformly and optimally.

"Inconsistencies between regulations at the central, provincial and regional levels can create legal uncertainty that will discourage investors from investing in Indonesia," he said.

He also said that the public consultation process on derivative regulations of the Job Creation Law must be more transparent and accountable, especially since the revision of the Law on the Establishment of Legislation has been completed.

"This law revision specifically stipulates that the government and the DPR need to ensure that the public can provide input to draft regulations online and offline. The implication is that all draft regulations must be available on official government and DPR channels," he said.

Data from the Ministry of Investment / BKPM noted that during the January-June 2022 period, the realization of investment in Indonesia had reached IDR 584.6 trillion, or 48.7 percent of the target set by President Jokowi of IDR 1,200 trillion.

This achievement was also recorded to grow by 32 percent compared to the achievement of the first semester of 2021.