Input for the Omnibus Bill on Job Creation

KOMPAS/TOTOK WIJAYANTO

Workers hold up posters at a rally at the House of Representatives in Senayan, Jakarta, on Wednesday (12/2/2020). The protesters objected to the omnibus bill on job creation, which they claimed would sacrifice workers’ welfare for the sake of investment. They say the bill threatens workers’ rights and welfare by excluding detailed provisions on minimum wages and the hourly wage system, eliminating severance pay, reducing work hours and altering the labor system.

The government’s openness toward input from various parties on the omnibus bill on job creation is an opportunity to give constructive criticism.

President Joko “Jokowi” Widodo said the government would be open to suggestions from all. The deliberation of the omnibus bill on job creation will involve various parties.

The omnibus bill on job creation has been proposed by the government. The reasoning behind the bill’s creation is that Indonesia’s ranking in ease of doing business has been lagging behind other countries, even in the ASEAN region, due to overregulation. For instance, there are 43,511 investment regulations in central and regional governments.

The government said problems impeding business included corruption, ineffective bureaucracy, lack of access to funding, infrastructure, policy and regulation certainty, wage increase and rupiah’s exchange rate.

On the other hand, economic growth that averages at 5 percent in the past five years has been inadequate in absorbing the 45.84 people currently underemployed. Meanwhile, the nation has 2.24 million new workers every year.

Through the omnibus bill on job creation, the government aims to nurture an attractive investment climate by eliminating these obstructing regulations and harmonizing conflicting regulations. Some 79 regulations are being combed through, involving 31 ministries and other agencies, in the bill’s drafting process.

KOMPAS/HERU SRI KUMORO

The head of the omnibus law task force, Rosan Perkasa Roeslani (second right), accompanied by task force members Shinta Widjdja Kamdani (third right) and Bobby Gafur Umar (right), speaks at a discussion on the omnibus bill at the editorial office of the Kompas newspaper in Jakarta on Thursday (20/2/2020). The task force was formed by Coordinating Economic Minister Airlangga Hartato to disseminate information, identify any problems and gather input from the public on the omnibus bill.

The public understands the government’s wish of achieving quality growth. Job creation through investment is hoped to improve people’s income. The omnibus bill is hoped to boost technology transformation, including strengthening the nation’s digital economy. Another goal is to prevent Indonesia from getting stuck in the middle-income trap.

Despite understanding and supporting the goals of the omnibus bill, the public still criticizes it. The bill’s drafting process is deemed to lack public participation, even if the reason is to prevent excessive commotion during the process. The bill’s composition is also deemed confusing and its articles open to multiple interpretation. Issues under spotlight including manpower, central-local government relations and environment.

If necessary, the deliberation deadline can be extended beyond the 100-day target.

Considering the widespread impact the omnibus bill will have, it is hoped that the government and the House will hear the public’s inputs and deliberate the bill carefully and thoroughly. If necessary, the deliberation deadline can be extended beyond the 100-day target.

We wish the resulting bylaw will be in line with its intended purpose. The bill, if approved, must not provide the improper answers to current and future challenges. The institutions produced by the omnibus bill must be able to sustain our economy for the long term, within the framework of achieving social justice for all.