Observer: Indicators Of Investment Competitiveness, Not Dissolved In The Job Creation Law

Illustration. (Irfan Meidianto / VOI)

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad assessed that the Omnibus Law on Job Creation cannot directly solve investment problems in the country. The global sweep law, which has 11 clusters, is mostly just to solve the problem of how to start a business in Indonesia.

Furthermore, Tauhid said, four other investment problems, namely getting elasticity , paying taxes , trading across borders and enforcing contracts were not so strong with the Job Creation Law. So even though, fixing the problem of starting a business doesn't solve other problems.

"We admit that investment is still needed, but it is not enough with the Job Creation Law," he said in a virtual discussion, Monday, October 19.

According to Tauhid, when discussing foreign investment, the government and the public must also look at indicators of Indonesia's investment competitiveness with other countries. One of them, regarding corruption cases that occur in the country is still high.

"It is also necessary to improve electricity infrastructure, tax services, to adjust loan interest rates that are more competitive and much lower. This is not resolved by the Omnibus Law on Cipta Kerja," he said.

However, Tauhid does not deny that the Job Creation Law has positive aspects for the Indonesian nation. However, he saw, there needs to be an addition to the regulation.

"There are many things that need to be improved on the ecosystem and requirements, especially some ecosystems that involve the negative list of investments, the obligation to reserve businesses and transfer technology for MSMEs to industrial areas," he said.

Tauhid asked all parties to guard the derivative rules of the Ominus Law on Cipta Kerja Law. The goal is that the Indonesian people do not experience the negative impact of this broom-sweep rule.

"I think it is still quite long, because the government is preparing the RPP, and this RPP must have been accelerated until December and this is lost , until no public is involved. So this is what is worried, if this has been lost, and finally the people's voices are not significantly heard. "So as not to harm the community, especially UMKM," he explained.