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Omnibus Law Has Positive Implications for Workers and Employers

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By: Ahmad Pahlevi )*

Maybe there are still many parties who are confused about the Omnibus Law scheme, but all these concerns will be answered. In addition, the application of the Omnibus Law is also considered to have positive implications for workers and employers. And the opening of new jobs followed by easy licensing for employers.

The pro and contra scrolls on the application of the omnibus law scheme keep on popping up, even though the omnibus law was created to streamline the regulatory and licensing process. Which of these things can lead to convoluted licensing.

The number 1 person in Indonesia Ir Joko Widodo once gave a speech where he conveyed the importance of simplifying the bureaucracy, this was done in order to support increased investment in order to open new jobs, so that one that would be sought was to cut regulations that were considered unnecessary.

Omnibus Law can be called as one of the solutions offered by Jokowi. Moreover, we already know that Indonesia did not get any contribution from the trade war between the United States and China.

Certainly not dismiss if various regulations related to employment are often used as an excuse for business actors and regulators of investment stagnation in Indonesia.

The Omnibus Law policy will certainly benefit the Employers and Laborers, the two segments must naturally achieve a win win solution or all existing problems.

Moreover, the Omnibus Law policy has a goal of creating a reliable business world and opening up of employment and welfare of workers. This is also supported by the fact that the country’s economy is believed to increase by around 7 percent.

Through a variety of innovations the world of commerce will certainly open more business opportunities which can be utilized to reduce the number of unemployed young people. By suppressing the unemployment rate, it is certain that the welfare of citizens will increase.

Finance Minister Sri Mulyani hopes that Omnibus Law can lure investors to enter the capital market. This is based on the many incentives that can be a stimulus for investors in the capital market later.

One of the incentives regulated in the regulation is the decrease in the amount of the PPh tax, which continues to fall from the current level of 25% to 22% in 2021 to 2022. The government also plans to reduce the income tax to 20% by 2023.

In addition, taxpayers who get foreign dividend income will be tax-free, with the condition that they will reinvest their dividends into the country. Sri said that all of this was expected to be able to improve the investment climate in Indonesia.

Moekti Prasetiani as Chief Economist of Danareksa Research Institute explained, foreign investors are very concerned about issues related to employment to invest in Indonesia. Some of the issues of concern include issues relating to wages.

The implementation of the policy can also combine a number of rules into one law as a new legal umbrella related to investment licensing that will provide legal certainty to investors. Because it should be recognized, currently various regulations related to licensing have not been aligned.

The benefits in applying the Omnibus Law will also be felt by the workers, where later the workers do not need to worry if something unexpected happens such as termination of employment (PHK) which can be done at any time by the business owner.

Coordinating Minister for the Economy Darmin Nasution claims the application of the omnibus law or regulation which combines a number of rules into one law as a new legal umbrella related to investment licensing has entered its final stage. Now the application of the policy is just waiting to be endorsed by President Joko Widodo.

After the omnibus law is completed, all authority related to investment licensing will be granted by the President through a Presidential Regulation (Perpres).

Of course layoffs are unexpected for every worker who works in any business sector, but certainly no one can guarantee that workers who work will be immune from the threat of layoffs, therefore the guarantee of layoffs in the Omnibus Law policy at least becomes evidence that the government in the midst of formulating strategies to provide welfare guarantees for workers.

)* The author is a social political observer

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