We regret that many parties really do not know the substance of this law, so several misperceptions linger on. This creates an irreversible mindset
Jakarta (ANTARA) - Deputy Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin) Shinta Widjaja Kamdani gauged that the job creation law had balanced the interests of several parties, including entrepreneurs, laborers, and MSMEs.

Hence, Kamdani expressed regret if resistance to this regulation still existed since the job creation law could enable Indonesia to compete economically at the global level.

"We regret that many parties really do not know the substance of this law, so several misperceptions linger on. This creates an irreversible mindset," she noted in a statement in Jakarta, Wednesday.

Kamdani highlighted the need for the Omnibus Law for all parties since the main problem in the business process until now was the structural aspect for which comprehensive reform was necessary.

"Indonesia wants to become a developed country, among the world's top five economies, for which we must pay attention to get out of the middle income trap and a GDP growth of US$7.4 trillion. This ideal is very beautiful, but we must know how to achieve this," she affirmed.

Kamdani also pointed to the current unfavorable situation since most businesses engaged in various economic sectors were impacted by COVID-19 and had resulted in high rates of unemployment.

On the other hand, Indonesia had yet to have the required competitiveness to perform at the global level, as foreign, local, and MSME investors were still apprehensive and distrustful about the conditions of doing business at home.

"Currently, investment per Rp1 trillion only absorbs 1,200 workers. Hence, this is an issue that must be taken into account. We have to invest in quality," she stated.

To this end, Kamdani is optimistic that this latest regulation would be able to solve the problem of overlapping licenses at the central and regional levels as well as the high costs that disrupt the Indonesian investment ecosystem.

One of the areas worth noting in the increase in wages, currently the highest in the ASEAN, reaching 9.7 percent, as compared to 1.7 percent in Thailand, 5.5 percent in Malaysia, and seven percent in Vietnam.

"Not only severance pay but our minimum wage is also the highest in the world. Just compare it with the minimum wage in ASEAN countries. For instance, it is US$192 in Vietnam, US$245 in Thailand, US$294 in Malaysia, and US$313 in Indonesia in 2020," she stated.

Furthermore, Kamdani reminded that the Job Creation Law also made it easier for MSMEs and cooperatives -- the backbone of the Indonesian economy -- to obtain business licenses.
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