Employment Creation Perppu To Pursuit Investment Targets Rp1.4 Trillion, Indef Economy: Too High

Executive Director of Indef Tauhid Ahmad. (Photo: Doc. Antara)

JAKARTA - Executive Director of Indef Tauhid Ahmad assessed that the investment target of IDR 1,400 trillion in 2023 is still too high in line with the issuance of the Job Creation Perppu submitted by the government.

The institution actually projects that realistic investment targets will be at IDR 1,300 trillion.

"It's too high, I think it's this year, IDR 1,200 trillion or IDR 1,300 trillion, for real," said Tauhid, Wednesday, January 11.

Tauhid explained that the amount of investment that has entered Indonesia is already large. According to BKPM records, in 2022, almost Rp900 trillion has been invested in Indonesia, before the Ciptaker Perppu.

For this reason, according to him, the government must encourage investment in strategic and positive sectors. Tauhid said industrial investment must be increased.

"For example, the government wants to direct you to say downstreaming in bauxite nickel, and so on, that's what must be pursued," he explained.

Then to industries that are affected by the weakening of the global economy. For example, industries that experience a decline in strategic industries such as steel, textiles and industries that are said to the workforce must be the focus.

"I think that's if you want to invest," said Tauhid.

The sector that is also interesting, added Tauhid, is the food and beverage sector which has a large market share and its growth is always positive.

"Finally, the logistics sector is growing rapidly because now digital use is increasing our logistics much higher," said Tauhid.

Previously, Coordinating Minister for the Economy Airlangga Hartarto revealed that the Government was regulating a budget deficit in 2023 of less than 3 percent by relying on investments targeted to reach IDR 1,400 trillion by 2023.

Therefore, the government encourages the issuance of the Job Creation Perppu as legal certainty for investors.

"Well, Rp1,400 trillion (rupiah) is not an ordinary figure because previously the target of the APBN for investment was only around Rp900 (trillion rupiah). Thus, these two challenges must be achieved, not easy. And entirely because the entrepreneur is waiting and sees legal certainty and sustainability of the Job Creation Law, "explained Coordinating Minister Airlangga who is also the General Chair of the Golkar Party.

Review

Meanwhile, senior economist Hendri Saparini admitted that he had not fully studied the Job Creation Perppu. However, Hendri assessed that the reason for creating jobs with this Perppu should be reviewed.

"Efforts to encourage job creation are necessary. But will this Perppu be the answer that will quickly create jobs? I don't think so," he said.

The founder of CORE Indonesia also stated that there are still many ways the government can do to create jobs without having to involve the issuance of a Perppu.

"There are short-term ways that can be done to create jobs without perppu, especially in labor-intensive sectors. As long as the government wants to make affirmative and comprehensive policies such as trade, industry, fiscal, so that it will provide a large medium-investment climate," he added.

The Perppu, said Hendri, also cannot be said to be able to play a role in the entry of investment into Indonesia.

The reason is, the Ciptaker Perppu also contains several rules that make it easier for several investment sectors.

"We cannot answer that we have not been able to increase investment because in some sectors it is ready to enter with the convenience provided in the Perppu," he explained.

Hendri also warned that the existence of the Perppu should not cause new problems.

"Don't let the new rules create new problems," he concluded.