By: Karsa Abdillah
The House of Representatives (DPR) has officially ratified four Omnibus Law Draft Laws (RUU) into the 2020 National Legislation Program (Prolegnas). The four Omnibus Law Drafts are the Draft Law on the State Capital, the Draft Bill on Pharmaceutical, the Draft Bill on Employment Copyright. , and the Draft Bill on Tax Provisions and Facilities for Strengthening the Economy. The community also supports this step because it is expected to be able to boost investment and facilitate public services.
Indonesia as a developing country is very dependent on investment. In 2018, investment will account for 32.3% of the total Indonesian economy. However, in 2019 the level of investment growth in Indonesia can be said to be stagnant, which is only at the lower limit of 5%. One reason is the difficulty of the investment climate, regulations and permits in Indonesia.
Policy uncertainty is the main problem over the difficulty and unsynchronization of existing regulations. During this time, regulations tend to be uncertain, out of sync with one another and not even fixed. Why did it happen? Yes, because it is confronted with many policies, while the problem is not in the number of rules but the certainty of the rules themselves.
Seeing this reality, the government initiated the Omnibus Law policy as an effort to create a system of legislation that corrects all articles in related laws. The urgency of this Omnibus Law is to minimize the high costs that are expected to come out if one by one the Act is discussed and corrected. The ‘omnibus’ tradition in Indonesia is actually not new, meaning that it has been a long time since the regulation became a barometer in correcting the regulations under it. The need was also driven by the planned move of the State Capital which is not long away. Of course, it requires simplification, summarization and replacement of laws to adjust the new State Capital later.
There are 4 Omnibus Law Bills scheduled to be included in the 2020 National Legislation Program namely the CLK (Cipta Karya Employment) Bill, the Pharmaceutical Bill, the IKN Bill (the National Capital) and the Tax Bill. The CLK bill is a way to address economic transformation faster. Any aspect of the economic structure cannot be separated from labor.
The CLK Bill facilitates the protection of the rights of all groups of workers that are the focus of the government so that optimal economic growth. Protection that covers both sides for workers and employers. How come? The existence of unemployment certainly inhibits economic growth due to passive consumption activities. Protection of workers who work is no less important to safeguard in order to maintain economic stability. Because whatever the profession, their job, they contribute to the economic movement and must get the protection aspect.
The Pharmaceutical Bill also became the realization of the hopes of pharmaceutical workers to have a Pharmaceutical Law. The Pharmaceutical Bill accommodates legal protection guarantees when carrying out professional practice for pharmacists and the public. In addition, it supports equality among other health professions at the level of legislation and becomes a guideline or policy for pharmacists in carrying out pharmaceutical practices and pharmacy education that is adapted to the development of the times while optimizing pharmaceutical practices for the community.
The IKN Bill is needed as a legal basis for initiating constitutional steps to relocate capital cities, both in the determination of the APBN budget and physical removal. There are 40 related laws which are simplified, namely laws relating to ministries, institutions, or state commissions that mention their position in the national capital, as well as the law on social organizations (mass organizations).
The Taxation Bill became the Omnibus Law sector which was also quite heavily discussed. Omnibus law in the field of taxation only contains 28 articles and is divided into 6 clusters. The government plans to implement sanctions to reduce regional transfer funds for local governments that do not follow the rules in the Tax Omnibus Law Bill.
Omnibus Law is a necessity. All parties must work together to prepare themselves as an ecosystem supporting economic acceleration. Starting with supporting the Omnibus Law, appreciating the political will of the government and parliament and being confident that the nation will not be shackled by the low-middle income trap in the future. Convoluted laws hamper economic growth. Without simplification with Omnibus Law, we cannot go anywhere.
- The author is a social political observer
