Chairman Of Kadin Rosan Roeslani: Ratification Of The Job Creation Law Does Not Need To Wait For COVID-19 To End

Chairman of Kadin, Rosan P. Roeslani. (Mery Handayani / VOI)

JAKARTA - Many parties regret that in the midst of the COVID-19 pandemic situation, the government is actually speeding up the ratification of the Job Creation Law. The broom-sweep law is considered to only benefit employers and make the people scream even more because there are articles that are deemed to be detrimental to workers.

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Rosan Roeslani, explained the reasons why the ratification of the Job Creation Law was rushed. According to him, this was done so that Indonesia could also catch up with other Asian countries in terms of attracting investors.

"We don't want to wait for COVID-19 to end. Because if we wait, we'll be left behind with neighboring countries such as Thailand, Malaysia and Vietnam in terms of bringing in investors," said Rosan Roeslani in Jakarta, Thursday, October 15.

Rosan added that in the midst of an increasingly uncertain situation due to the effects of the pandemic, Indonesia needs to respond quickly to restore investment activity by passing the Job Creation Law. According to him, the global sweep law will provide a strong signal that Indonesia remains in a conducive state and is open to business and investment.

He also did not deny that data from the Investment Coordinating Board (BKPM) shows that investment continues to increase every year. However, he highlighted that despite high investment, employment still looks low.

"Capital-intensive investment or manufacturing prefers our neighboring countries such as Malaysia, Thailand and Vietnam. Foreign Direct Investment (FDI) is an important source of financing for Indonesia," he said.

He explained, with high FDI, the government could create large jobs. The head of the Omnibus Law Task Force said that job creation must be done by encouraging an increase in investment by 6.6 to 7 percent.

"That is to build a new business or develop an existing business. The effort is to encourage an increase in consumption in the range of 5.4 to 5.6 percent. And after the law is passed, it is hoped that changes in the economic structure will occur to encourage growth of 5.7 percent to 6 percent. "explained Rosan.