Industries |

The Arrival of the Omnibus Bill

Industries | 28 February 2020
President Joko Widodo
Will amending 73 laws and consists of 15 chapters and 174 articles make this country better? Photo courtesy of tandaseru.id/NOWJAKARTA

President Jokowi recently initiated the omnibus bill to improve convenience of doing business in Indonesia and attract investment, thereby boosting job opportunities and economic growth in Indonesia.

However, labour groups are protesting the bill over potential reductions in their rights, remuneration and job security. One of focal points of criticism is the stronger role of central government, which could potentially weaken the substance of democracy. Businesses, on the other hand, have welcomed the bill due to the focus on streamlining business licenses, making Indonesia more open to foreign investment and a more flexible labour market.

The omnibus bill on job creation would amend 73 laws and consists of 15 chapters and 174 articles. The government and businesspeople consider Indonesia to be over-regulated with a total of 43,511 central government regulations as well as ministerial, agency and regional-level rules.

Here is a brief breakdown of all the sections within the 1,028-page omnibus bill for the purpose of job creation (compiled by thejakartapost.com), with an extra explanation on the much-debated impact on labour.

The Arrival of the Omnibus Bill

infografis omnibuslaw bill
Image from freepik. Infographic created by Arief Aji Prasetya (Ade)/NOWJAKARTA