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Omnibus Law Supports The Growth of Indonesia’s Economic

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By: Evan Kusuma) *
 

The economic sector has indeed become one of the efforts pursued by the government in the Indonesian cabinet. Affirmative action is also needed in accelerating licensing, one of which is by the existence of Omnibus Law which can reduce overlapping regulations. Therefore, the realization of the Omnibus Law Act is also believed to be able to support Indonesia’s economic growth.

We need to know that Indonesia’s economic challenges in the coming years are indeed quite large. So we need a regulation that can give birth to the transformation of the taxation system so that it is conducive to the challenges of the times, namely the industrial revolution 4.0 which is full of uncertainty.

The Indonesian Muslim Intellectuals Association (ICMI), gave its support so that the omnibus law could be accelerated immediately, because if it was too late the demographic bonus in Indonesia could result in a social tsunami.

This is a reason why ICMI gave its support to the government to make affirmative efforts, among others, by omnibus law.

ICMI also hopes that in 2020 it will be brighter, restore and stimulate the national economy. The economy is expected to grow above 5 percent, increase investment, open employment and avoid layoffs by distributing development to gain opportunities in earning income.

The Omnibus Law itself consists of 11 clusters, namely the simplification of licensing clusters, investment requirements, employment, ease of empowerment and protection of MSMEs, ease of doing business, research and innovation support, government administration, imposition of sanctions, land acquisition, investment in government projects, and economic areas including areas industry.

The total workforce in Indonesia currently stands at 131.56 million. Of this total, 126 million workforces have worked. However, if the economy grows by 5 percent, every year there will emerge about 2 million new workers. From this, it can be concluded that the Omnibus Law can improve Indonesia’s economic growth.

On different occasions, the Coordinating Minister for the Economy Airlangga Hartati targeted that the Omnibus Law could be completed by mid 2020. It was hoped that before Idul Fitri, the draft bill had been completed.

If the omnibus law has been passed, it is planned that the policy will be able to revise 74 to 79 laws from various sectors.

Previously, Minister of Law and Human Rights (Menkumham) Yasonna Laoly said that currently the drafting of the Omnibus Law Bill on employment has reached 95 percent. At present, the regulation is in the finalization stage.

Omnibus Law is also believed to benefit the workers, this is because, Omnibus Law also accommodates workers affected by layoffs or leaving the job market.

For workers who have lost their livelihoods, these facilities will be provided as long as the company or the person concerned has become part of an active participant of the BPJS Employment.

Of course the government’s step in implementing the Omnibus Law scheme increasingly exists, but it also has a number of positive impacts on the development of the national economy.

Although this still applies at the central level, the Omnibus Law is planned to be implemented in all regions in order to create harmonious regulations between the regional government and the central government.

With the application of the omnibus law, it is expected that this can eliminate the disharmony of laws and regulations quickly, effectively and efficiently. It also can uniform government policies to support the investment climate, simplify the bureaucracy and improve coordination between the center and the regions because it is regulated in the omnibus regulation policy.

If the value of investment in Indonesia increases, it will certainly have a positive impact on employment, especially with the many productive ages in Indonesia, of course this will be a dancing power for both employers and investors.

Employers / employers also benefit from the tax laws that have dominated such as the enactment of Tax Holiday but still with conditions.

Minister of finance Sri Mulyani said, overhaul 72 laws (UU) through an omnibus law scheme that would cut overlapping investment licensing rules at the central and regional levels. Through this revision, the government intends to improve investment licensing so as to attract more investors to Indonesia.

The Indonesian people must be more advanced and developing, therefore do not let the progress that will make some people become trapped and unable to do anything because of being laid off. With public support for the Omnibus Law, it is hoped that Indonesia’s economic growth will soon increase.

) * The author is a social political observer

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