By: Otjih Sewandarijatun
The Government and Parliament are currently working on the Omnibus Law. Cutting the regulations with the Omnibus Law scheme is believed to have a lot of benefits for the national economy, employers, and workers.
In the midst of three serious economic threats in 2020, namely the prediction of Sikon’s economy which is still sluggish, the trade balance deficit and the balance of payments deficit, as well as in an effort to boost investment, reduce imports and accelerate exports, the government proposed 2 Omnibus law bills related to job creation and taxation to the Indonesian Parliament. Omnibus law is needed to cut the overlaps of regulations, so this effort needs to be supported even though the government and the House of Representatives must maintain that the Omnibus law is not a savior for rogue entrepreneurs, because if this happens market mistrust and society will strengthen.
Omnibus law is a law (Act) created to resolve major issues by revoking or amending several laws at once, so that it becomes simpler. The government is developing an omnibus law whose ultimate goal is to encourage national economic growth. There are three things that are targeted by the government, namely the taxation law, employment creation, and the empowerment of MSMEs.
In its development, President Joko Widodo (Jokowi) installed the time limit for drafting the Omnibus Law to be completed next week or the third week of January 2020. The targeted Omnibus Law will soon be completed involving two forms of bill (RUU), namely Omnibus Law field copyright employment and Omnibus Law taxation. “Settlement related to Omnibus Law can be completed in these weeks.
At the latest, next week, “said the President when giving a speech opening the Plenary Cabinet Session at the State Palace, Monday (6 / 1.2020).
In the last limited meeting on the Omnibus Law in December 2019, the President had said that the substance of this bill involved 11 clusters involving 30 ministries and institutions. Therefore, he requested that the big vision and framework of the draft bill have a clear focus and remain consistent, so that it is synchronous and integrated. The President does not want the Omnibus Law Bill to be a place to accommodate the desires of ministries and institutions. “Do not let, only accommodate, accommodate, accommodate desires, but do not enter into the big vision that I convey,” he said.
Furthermore, the President also instructed the Attorney General, the National Police, and BIN to see the impact of this Ornnibus Law Bill. Therefore, the discussion of the Omnibus Law Bill must be carried out together with all stakeholders. In addition, Jokowi also asked his staff to prepare regulations derived from Omnibus Law. Namely, in the form of a draft government regulation, revised PP, or draft presidential regulation.
“It must be done in parallel not only to make the bill and its implementing regulations a solid regulation, but also to make it easier for stakeholders to understand the great architecture of the omnibus law that we are working on,” Jokowi said.
After the Omnibus Law Bill was approved by the Parliament, Preisen requested that his staff immediately speed up the execution process on the ground. The President also reminded that the draft Omnibus Law bill be conveyed to the public before it is discussed in the DPR. In the work Omnibus Law draft, a discourse on wage schemes is calculated based on working hours. This scheme has been rejected by workers. However, the Minister of Manpower Ida Fauziyah explained, the hourly wage plan was given to workers whose work duration was below the 40 hour week requirement.
Omnibus Law was put forward by President Jokowi when he was appointed President 2019-2024. Omnibus law is an import legal concept, and in Indonesia it does not recognize Omnibus law. Omnibus law is more widely known in common law countries, such as the United States or Australia, while Indonesia adheres to civil law. President Jokowi took the concept of the omnibus law in the spirit of overcoming the chaotic legal system that exists in Indonesia, even Indonesia being a hyper-regulation country. According to the records of the Center for Law and Policy Studies, during the administration of President Jokowi until November 2019 there were 10,180 regulations in various forms.
Omnibus law is expected to be a universal broom law that can overcome everything. With the political power in the DPR which is majority controlled by government support parties, the Omnibus Law is politically easy to solve politically.
Minister of Law and Human Rights Yasonna H. Laoly is targeting two Draft Omnibus Law Notices discussed by the DPR in January 2020. The two Omnibus Laws are the Employment Copyright Act and the Taxation Law. The submission process to the DPR will be conducted after the parliament meets.
Omnibus Law Cipta Karya is designed to create as many jobs as possible, protect Micro, Small and Medium Enterprises (MSMEs), encourage the growth of MSMEs, encourage investment growth, and encourage exports. All provisions concerning. There are 11 major areas concerning 74 laws that must be considered to look for laws that hamper, then they will be improved. President Joko Widodo ordered the Ministry of Law and Human Rights to go around the regions to socialize about the Omnibus Law.
Important points of the Omnibus Law in job creation are changing the procedures for wages and labor pengason; Simplification of business licensing; Imposing administrative sanctions and eliminating criminal sanctions; Ease and legal protection; Research and innovation documents; Ease of government projects; Convenience at KEK. Important points of the Omnibus Law in the taxation sector: gradual reduction of corporate income tax rates by 22% (2021-2022) and 20% (2023 etc.); Decreasing PPh tariff for publicly traded bodies (3 percent of general tariff); Elimination of domestic income tax dividends as long as they are invested in the Republic of Indonesia; Territorial system for certain income abroad; Taxation of electronic transactions; Rationalization of local taxes; Arrangement of tax facilities (tax holiday, super deduction, PPH KEK and PPH bonds); Rearrangement of taxation, customs and excise administration sanctions.
It should be remembered, in the perspective of political interests in the DPR-RI, passing an omnibus law is not easy, because one of the things that must be changed is Law Number 12 of 2011 concerning the Formation of Legislation. The idea of making the Law of the world sweep must not forget public participation and respect the constitution and legal principles. In the omnibus law about job creation, it was identified that there was the issue of workers’ severance that would be terminated by employment that was often conveyed by employers, potentially provoking resistance from trade unions. The government must be able to make Omnibus Law create justice, general prosperity and protect individual rights, especially in the changing economic era, namely the existence of equity crowd funding and peer-to-peer lending proving that the community can be the owner of the company cooperatively, so that between the government, entrepreneurs and the community must collaborate on sharing results.
