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Flood Support Omnibus Law Bill

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By: Pradikta Putra) *

Omnibus Law Receives Support from many parties because the bill is considered to be a solution to improving business licensing regulations in Indonesia, especially after the pandemic, many people will need legal certainty in building businesses in Indonesia.

Dr. Teddy Anggoro, as an expert on Law at the University of Indonesia, suggested that the Indonesian Parliament should continue discussing the Omnibus Law. This discussion is important as an effort to recover after Covid-19.

              The lecturer at the Faculty of Law at UI explained that Omnibus Law as a way or method of forming legal products is not something new in Indonesia. Previously, the omnibus law method had been implemented in the formation of a regulation.

              On a different occasion, DPD Generasi Sosial Peduli Indonesia (GSPI) Bengkulu Province, Jonson Manik, said the declaration of support to the government for the effort to draft the Omnibus Law Bill on Work Creation had been carried out by GSPI Volunteers in Bengkulu province.

              His party also supports the Omnibus Law Bill to facilitate the entry of investment so that it can absorb local labor which leads to an increase in people’s welfare.

              He also invited the public, laborers and all elements of workers to build national optimism by supporting the enactment of the Job Creation Bill. This Job Creation Bill was proposed as a strategy to overcome various economic and business problems, mainly related to the many overlapping regulations and stagnant investment effectiveness.

              Jonson assessed that most of the owners of capital are those who want to invest in the short term so that it does not have an impact on the creation of domestic industrialization solidity. Investors will also definitely think again if they want to invest in the long term in Indonesia. According to him, this is something that is reasonable considering the various indicators of Indonesia’s competitiveness are not very encouraging.

              He also complained that licensing procedures in Indonesia are still complicated. The length of the licensing bureaucracy opens up opportunities for rent, so that investors will pay double the investment costs when compared to having to open a business in another country.

              On the same occasion, the GSPI Bengkulu Province believes that the application of the omnibus law concept, the Job Creation Bill can improve the national economy by bringing benefits to entrepreneurs, job-seeking labor groups and investors currently considered very much needed by Indonesia.

              GSPI Bengkulu also believes that the material of the Work Creation Omnibus Law Bill can be part of centralization, uniformity, integration, integration, between central and regional policies which are part of bureaucratic efficiency and minimize conflicts of interest between certain parties.

              The application of the omnibus law itself has several benefits, namely eliminating the overlap between statutory regulations, efficiency of the process of changing / revoking statutory regulations and eliminating sectoral egos contained in various statutory regulations.

              For information, Indonesia has actually implemented an omnibus law, such as Law No. 9 of 2017 concerning the stipulation of government regulations in lieu of law (Perppu) No.1 of 2017 concerning access to information for tax purposes.

              This law removes and declares that it does not apply to banking, insurance and capital market secrecy provisions related to tax access which were previously regulated in the Banking Law, Sharia Banking Law, Insurance Law and the Commodity Futures Trading Law. At the international level, there are actually many countries that have implemented the Omnibus law, such as Australia, Vietnam and the United States.

              On a different occasion, Fadjroel Rachman, as the spokesman for the President, assessed that the Omnibus Law, which is currently being discussed by the government and the DPR, has received support from businessmen in various fields.

              Tauvik Muhammad as the manager of the skills development program of the ILO Jakarta said that Covid-19 could increase unemployment in Indonesia, which even before the pandemic had reached 20.4 percent or was quite high compared to the global average.

              He said Indonesia needed policy integration. Because on the one hand, the Indonesian workforce is dominated by informal sector workers with low education, but the fact is that Indonesian society is integrated in the free market with economic digitization and industrial automation.

If the omnibus law is implemented, it will certainly have an impact on the local workforce that is absorbed, and the ease with which investors can invest without a difficult licensing process.

) * The author is active in the Cikini Press and Student Circle

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