President highlights benefits of Job Creation Law to OPEC members

President highlights benefits of Job Creation Law to OPEC members

President Joko Widodo. (Antara/HO-Presidential Secretariat)

The Job Creation Law will have a significant impact on the business climate and investment in Indonesia. First, the licensing process for doing business and investing will become simpler and quicker
Jakarta (ANTARA) - President Joko Widodo drew the attention of participants of the 2020 APEC CEO Dialogues meeting to the six benefits of Law No. 11 of 2020 on the Job Creation Law.

"The Job Creation Law will have a significant impact on the business climate and investment in Indonesia. First, the licensing process for doing business and investing will become simpler and quicker," according to President Widodo, one of the speakers at the 2020 APEC CEO Dialogues, broadcast virtually by the Presidential Secretariat YouTube channel on Thursday.

The head of state explained that the Job Creation Law can make the requirements for investment simpler, annul the need for business licensing for micro and small businesses, and make registration sufficient.

"Second, illegal fees and corruption are cut by integrating the entire licensing process into the electronic licensing system through the Online Single Submission (OSS) system," the president remarked.

The third benefit is that business activities and investing are made easier, formation of a limited liability company is made simpler, and a minimum capital limitation is no longer required.

"The processing of patents and brands has also been accelerated. Acquisition of land and land for public interest and investment is much easier," the head of state remarked.

Fourth, the Job Creation Law encourages investment in Special Economic Zones (KEK), free trade areas, and free ports, so that it becomes easier and more attractive, with various facilities and incentives.

"Business licensing services in these areas will be conducted in a matter of hours, with fiscal facilities integrated into the Online Single Submission (OSS) system," the president remarked.

Fifth, Indonesia will also form a sovereign wealth fund that will manage and place several funds and/or state assets directly or indirectly and cooperate with third parties.

"Sixth, the Job Creation Law protects and enhances the role of workers in supporting investment in Indonesia, including offering legal certainty in regulating minimum wages and severance pay," the president noted.

According to the president, the main objective of the government in the Job Creation Law is to create a quality business climate and investment for business players, including MSMEs and foreign investors.

"Overlapping regulations and complicated procedures were trimmed, convoluted bureaucratic licensing chains were cut, and illegal levies that had hindered business and investment were also eradicated. We still prioritize our commitment to protecting the environment," the president stated.

To this end, President Jokowi invited CEOs and business actors in the Asia-Pacific region to gauge the positive impact of various potentials and incentives from the economic policies issued by Indonesia during this pandemic.

"Let us get up together and work together to restore the health of the people and the regional economy, as well as make leaps in progress for economic success in the region," he stressed. Related news: Jokowi upbeat about Muhammadiyah debunking hoaxes surrounding COVID-19

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