Job Creation Law Stimulates International Trade

Read Time:3 Minute, 26 Second

04/01/2021/eng – The Job Creation Law has a positive impact on the business world, not only for the local class but also for the international market. Ease of licensing for entrepreneurs to export their products. So that you get profit with the dollar currency. Businessmen who previously weakened due to the corona storm have risen again, thanks to this law.


When Indonesia was hit by a pandemic, the trade sector really collapsed, because people’s purchasing power decreased drastically. Entrepreneurs scream because they have to survive amidst the uncertainties. They actually want to expand overseas and look for new markets, but unfortunately they are hit by capital and permits.


The government is trying to help entrepreneurs, especially MSMEs, so that they are able to continue working despite the corona storm. The President provided capital assistance to businessmen worth 2.4 million rupiah. In addition, there is another special prize in the form of a Job Creation Law. This law has a cluster of ease of doing business, thus making it easier to manage business legality.

Zamroni Salim, a researcher from LIPI stated that the Job Creation Law cuts various permits contained in many laws and regulations (perpu) so as to promote economic activity in Indonesia. Especially in the fields of investment and international trade. So that Indonesia is free from the middle income trap trap.


What is meant by the middle income trap is the failure of a country that is still in the lower middle status but wants to move up to the upper middle class. The reason is because the country’s average income (GNP) ranges from 1,000 to 12,000 dollars only. The number is constant and never increases again.


If Indonesia wants its average income to rise, what needs to be improved is the system. The Job Creation Law seeks to improve the trade system by cutting red tape and making licensing easier. So that the legality of the business can be obtained a maximum of 7 working days and can be managed via online. Entrepreneurs do not have to come directly to the office to get it.


Licensing issues in international trade are very important, because clients from abroad always require business legality. Businessmen who already have a business license will be able to export their products and expand to foreign markets. Legality is like a SIM when it will be flapping its wings to international trade, so that the government makes it easier to administer.
Actually, Indonesia has a lot of potential that can be used as export goods. We are a nation that used to depend on the agricultural sector. To increase the price of agricultural products, it can be processed, for example, sweet potatoes into chips, cassava into mocaf flour, and so on. With the correct packaging, the product will reach overseas markets safely.

Why should you target the global market? Because trading with foreign currency is always profitable. Exchange rate differences make entrepreneurs get more income, so that their businesses can grow rapidly. By entering the global market, their products are of international standard and are also trusted by local consumers.


Coordinating Minister for the Economy Airlangga Hartarto represented the Indonesian government in signing the RCeEP (regional comprehensive economic partnership agreement involving 15 countries. So that Indonesian entrepreneurs are greatly helped by offers from other countries that also signed the agreement. This cooperation will be mutually beneficial.)
When the global market opens and the Job Creation Law makes licensing easier, then employers just need to take action and take care of legality. After that they improved their product standards, rebranded themselves with better packaging, and entered the international market with confidence. Indonesia’s economic conditions will rise again.
Therefore, we must support the Job Creation Law. Because this law makes it easier for entrepreneurs to take care of permits, they can export their products smoothly. When the business world becomes more vibrant, it is hoped that people’s purchasing power will increase again, and the state’s financial condition will be stable again.

By: Eduardus Ruminta,  contributor to the Cikini Press Circle and Students

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %