Without The Job Creation Law, Foreign Investment In The Country Remains High

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The Work Creation Omnibus Law (UU), which was recently passed, continues to receive rejection from the public, including from labor or labor unions. The government argues that this broom-sweep law is important because it will encourage even greater investment in the country.

Executive Director of the Institute for Development of Economics and Finance (INDEF) Tauhid Ahmad said that without the Omnibus Law on Job Creation, foreign investment entering Indonesia would have been high.

Furthermore, Tauhid said, Indonesia is one of the countries that is the favorite for investment purposes. This is because Indonesia has a large market or market and abundant natural resources (SDA).

Currently, said Taufik, the average investment growth in the country is around 8 to 10 percent, especially the flow of foreign direct investment (FDI). However, he said, not in the financial sector.

"Incoming investment is generally more interested because we have extraordinary natural resources. Our Foreign Direct Investment (FDI) is actually quite high," he said, when contacted by VOI, Tuesday, October 6.

According to Tauhid, the influence of this global sweep Law on investment in the country is not very significant, it even brings little hope.

"Yes, not really. There is an influence but not significant. Indeed, from this law there is actually some hope. But in my opinion it is not too much," he said.

If you want incoming investment to increase significantly, said Tauhid, the government should pay attention to other factors that can influence investment inflows.

"Because there are other factors that must be considered to make (investment in) significant. For example, the structure of reducing logistics costs, the quality of our human resources is still hampered by corruption. big again (entering Indonesia), "he explained.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto said the Job Creation Law was a legal umbrella that could solve various problems that hindered investment.

Furthermore, he said, through the simplification of the bureaucratic and licensing system, the convenience for business actors, and a conducive investment ecosystem. As well as creating jobs to answer the needs of the growing workforce.

"Through the Job Creation Bill, it is hoped that there will be an increase in job creation, increased competence, worker welfare, increased work productivity, and increased investment," he said, in Jakarta, Monday, October 5.

The government is optimistic that the Job Creation Law will be able to improve the investment climate in Indonesia and make many companies shift their investment to Indonesia.

Airlangga said that up to now there were 143 companies planning to relocate their investments to Indonesia, including from the United States, Taiwan, South Korea, Japan and China.