The Government and Parliament continue to work together to realize the Omnibus Law. The concept of simplifying the regulation is considered beneficial because it provides welfare guarantees for workers who get laid off. In addition, Omnibus Law is also believed to facilitate licensing for business actors.
Pros and cons regarding the application of the increasingly crowded Omnibus law will soon be answered. The practical scheme and will change all the economic rules of the archipelago which is notoriously complicated will end. Simplifying the regulation through the omnibus law is considered by a number of parties to be sufficiently capable in relation to regulations that have made the Indonesian economy stagnate for years.
This not only affects the world of commerce and industry, but also workers are also disadvantaged. The reason is that the weakening of economic value will also affect the effectiveness and efficiency of the country’s performance. For entrepreneurs, the rules are so complicated that all problems become more and more complex. For workers, related to wages, benefits, to health insurance is also influenced by stagnant regulations. Including the number of unemployed because investors are afraid to invest because of this.
Previously, Minister of Finance Sri Mulyani hoped that the Omnibus Law of Taxation would lure investors to jump into the capital market. He expressed his hope that because of the Tax Omnibus Law Bill there are many incentives that could be a stimulus for investors in the capital market later.
One of the incentives stipulated in the regulation is a gradual reduction in the Corporate Income Tax rate from the current 25 percent to 22 percent in 2021 to 2022. The government also plans to reduce the Corporate Income Tax to 20 percent by 2023.
In addition, taxpayers who get foreign dividend income will be tax-free, with the condition that they will reinvest their dividends in the archipelago. Sri Mulyani added, all of this is expected to further improve the investment climate in Indonesia, the emergence of companies that are getting bigger and able to be organically or non-organically entering the capital market.
Nevertheless, he cautioned that investors who come to the Indonesian capital market can maintain their credibility. This effort is needed to safeguard the reputation of the Indonesian capital market from investments that are considered detrimental to the public. For example, when they issue bonds that have good reputation, so do not let it only in a few months or years later they experience a default (default).
He also asked the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) to act as regulators in the capital market to deepen the financial markets. Thus, Indonesia can increase its economic defense amid the increasingly volatile global turmoil.
For information, the Taxation Bill itself will harmonize at least seven laws (uu) and 28 articles. The seven laws include the Law on Income Tax (PPh), the Law on General Provisions and Tax Procedures (KUP), the Regional Tax and Retribution Law, the Value Added Tax (PPN), the Law on Customs, the Law on Excise, along with the Law on Regional Government .
Regarding Omnibus law, which is predicted to be able to cut the tangled regulations in the archipelago. There are several benefits for workers and employers alike. For entrepreneurs themselves they will benefit from the tax law that has dominated so far. Like the enactment of Tax Holiday but still with the conditions. So it will be sorted out which companies are honest and cheating.
For workers, job opportunities are increasingly large. Given the Omnibus law will make investors flocked to invest in Indonesia. In addition, in the omnibus law for employment, for example, more than 70 laws or a number of articles in 70 laws have been identified which will be summarized by the government. So that its application no longer harms workers and employers.
Furthermore, the application of the omnibus law is not only a matter of workers and employers. But on the issue of overlapping economic system rules in Indonesia that resulted in a number of economies becoming stagnant. Hopefully in the future, this scheme will make many entrepreneurs with new breakthroughs without obstruction of licensing that will make them drag. While for workers it will certainly be able to improve performance better. Not to forget, the government is optimistic that the Indonesian economy will experience a significant strengthening. So as to make welfare more evenly felt.
Rizki Insani, the writer is a social political observer
