Observer: Job creation law simplifies obtaining of permits for MSMEs

Observer: Job creation law simplifies obtaining of permits for MSMEs

Coordinating Minister for Economic Affairs, Airlangga Hartarto (fifth left), Minister of Law and Legal Affairs, Yasonna Laoly (fifth right), Minister of Finance, Sri Mulyani (fourth left), Minister of Home Affairs, Tito Karnavian (fourth right), Manpower Minister Ida Fauziyah (third left), Minister of Energy and Mineral Resources, Arifin Tasrif (third right), Minister of Agrarian and Spatial Planning, Sofyan Djalil (second left), and Minister of Environment and Forestry, Siti Nurbaya (second right) pose with House of Representatives leaders after the ratification of the job creation law at a Plenary Meeting at the Parliament Complex, Senayan, Jakarta, on October 5, 2020. During the plenary session, the job creation bill was passed into law. (ANTARA FOTO/Hafidz Mubarak A/pras)

(This will) provide opportunities for MSMEs to establish and develop businesses
Jakarta (ANTARA) - Riau University economic observer Edyanus Herman Halim has said he believes the Job Creation Law would allow micro, small, and medium enterprises (MSMEs) to obtain business permits more quickly and easily.


“(This will) provide opportunities for MSMEs to establish and develop businesses,” Halim said in a statement issued in Jakarta on Monday.


He said that this convenience could eliminate the need for small businesses to obtain permits such as Business Place Permits (SITU), Industrial Business Certificates (IUI), Company Registration Certificates (TDP), and environmental permits.


The ease in licensing would hopefully revive business activities and create jobs in the sectors affected by the COVID-19 pandemic, he added.


“Now that the opportunity has been given, open businesses as widely as possible. That way, labor is absorbed; but the government will supervise, so that MSMEs do not interfere with public order and society. If anyone violates the rules, they should not be fostered," he said.


Halim said he hoped the public would not be excessively concerned over the law, especially regarding the influx of foreign workers, as that will be regulated through a Government Regulation (PP).


“It (entry of foreign workers) will later be confirmed through government regulations. Foreign workers can come in, but there are follow-up provisions. PP (Government Regulation) is to follow up and make criteria, make certification. So, everything regarding foreign workers will be clear," he elaborated.


Earlier, Pelita Harapan University postgraduate lecturer Emrus Sihombing had said the Job Creation Law would help Micro, Small, and Medium Enterprises (MSMEs) develop their businesses.


"This law is very good for providing opportunities for MSMEs and absorbing workers," Sihombing said in a statement in Jakarta last week (October 13, 2020).


He explained that the regulation would cut down the convoluted permits processes that need to be carried out by MSMEs to ensure they no longer have difficulty opening a business later on.


In addition, he said, the Job Creation Law would also act as a legal political strategy for the government and the House of Representatives to attract investment and help improve the people's economy. (INE)

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