Ministry Of Finance: The Job Creation Law Is One Of The Weapons To Push For Economic Recovery

Ministry of Finance Building. (Angga Nugraha / VOI)

JAKARTA - The Ministry of Finance stated that the Job Creation Law will be one of the capitals for economic recovery in 2021 because it will encourage positive growth in investment, exports and consumption, in addition to controlling COVID-19 which is a priority.

"So we must encourage investment as fast as possible, that is an important factor of the Omnibus Law which was passed yesterday," said Head of the Fiscal Policy Agency (BKF) Ministry of Finance Febrio Kacaribu quoted from Antara, Tuesday, October 6.

According to him, based on the realization of the gross domestic product (GDP) in the first half of 2020, from the overall outlook this year only government consumption grew positively in the range of 0.6-4.8 percent.

Meanwhile, he continued, other components included negative household consumption of 2.1 to 1.0 percent, exports grew negatively by 9 - 5.5 percent and imports negatively 17.2 to 11.7 percent.

After being ratified by the DPR, he said, derivative regulations from the Job Creation Law such as Government Regulations, Minister of Finance Regulations and other Ministerial Regulations would soon be finalized in order to attract and increase new businesses.

Febrio explained that the main point of the Job Creation Law is the simplification of licensing, especially now that there are more and more startup business actors from millennial circles who have ideas and opportunities to create jobs.

By creating employment opportunities, people have the opportunity to have income, thereby contributing to household consumption.

In addition, he said, it is also the ease of paying taxes that many business actors have complained about in the ease of doing business or the ease of doing business in investing.

"Do not let people have ideas that quickly produce products and create jobs, then have the permission. We have to straighten out the mess of licensing, we have to justify it," he said.

The government projects that this year's economic growth will be in the negative range of 1.7 to 0.6 percent. Meanwhile, in 2021, the government projects that economic growth will skyrocket positively in the range of 4.5 to 5.5 percent.