The government is finalizing the groundbreaking legal umbrella Draft Law called omnibus law creation of employment. Efforts to give birth to the omnibus law were carried out to solve the various deadlocked problems that had been hindering, on the other hand the need for job creation became a necessity amidst high unemployment.
Important points of the Omnibus Law in job creation are changing the procedures for wages and severance pay for workers; 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 as long as it is 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 tax, customs and excise administration sanctions.
Keep in mind, in the perspective of political interests in the House of Representatives, approving the 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 universal broom laws must not forget public participation and respect for 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 is often conveyed by employers, potentially provoking resistance from trade unions.
The government must be able to make Omnibus Law create justice, general welfare 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.
