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Omnibus Law, Innovation That Accelerates Economic Transformation

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By: Andry Jozih

The Government and Parliament continue to accelerate the realization of simplification of regulations through the Omnibus Law scheme. Simplification of the regulation is an innovation in the field of regulation in order to accelerate the transformation of the national economy amid a weakening global economy.

Economic transformation is referred to as part of efforts by the government to reduce the trade balance deficit. The government rolled out a major innovation to improve the country’s economy with the Omnibus Law Act, which is a rule that can simultaneously revise many laws if they have been enacted by the Indonesian Parliament.

The government is trying to summarize the overlapping regulations through the Omnibus Law scheme believed to be able to bring the economy better and the nation’s progress can be realized immediately. The implementation of the Omnibus Law scheme is reaching its peak and continues to be predicted by the government. Because, many parties have realized the importance of this breakthrough to improve the national economy.

The government’s step in implementing the Omnibus Law scheme seems increasingly wide open. Not only can it unravel the complexity of the existing regulations, but also has a number of positive impacts. Especially for the development of the national economy. The Omnibus Law will specifically renovate every regulation in the economic sector which includes; taxes, development, investment and job availability.

There are several Omnibus Laws that will be submitted in stages. The bills include the Draft Bill on Employment Creation, the Omnibus law on taxation, the Ominibus Law on the National Capital, and the Omnibus Law on pharmacy. The draft Employment Creation Bill (RUU) that will be submitted to the Indonesian Parliament will contain a summary of 2,517 articles that clash with each other in the 83 Acts at this time.

Minister of Finance Sri Mulyani Indrawati revealed the omnibus law on the Employment Copyright Bill and the Employment Card became a security measure for the middle class in Indonesia. Because the middle class is still vulnerable to returning to the poor if it is not supported by the government’s security policy.

After the Omnibus Law Bill was approved by the Parliament, the President 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 draft Omnibus Law Cipta Karya Kerja, a discourse on wage schemes emerged based on working hours.

This scheme has been rejected by workers. However, the Minister of Manpower Ida Fauziyah explained that the hourly wage plan was given to workers whose work duration was below the 40 hour week requirement.

Keep in mind, in the perspective of political interests in the DPR-RI, passing the Omnibus Law is not easy, because one 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 for the constitution and legal principles. The Omnibus Law Scheme as a Law of the Universal Sweep which can act as a legal umbrella to improve overlapping licensing, regulation and bureaucracy in Indonesia.

The policy simplification of regulation will not be maximized without the support of the community. In fact, the Omnibus Law is an effort of the Government to create justice, general welfare and protect individual rights. It is appropriate for the public to believe and be optimistic about the policy simplification of regulations because the community will be the one to reap the fruits of the program’s success.

The writer is a socio-political and national economic observer

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