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Jakarta, CNN Indonesia –
Government and DPR agreed to ratify the Law Plan all the law Cipta Kerja became Ley at the beginning of last week. However, the ratification received strong reactions from circles. worker.
They took to the streets. The action was sparked by a series of provisions in the Employment Creation Law that were deemed to erode labor rights.
One of the articles in question was reducing severance pay from 32 to 25 months’ salary. Unfortunately, the demonstration ended in chaos in several cities in Indonesia.
In Jakarta, for example, clashes between protesters and the police spread from the Harmoni area, Medan Merdeka Selatan to MH Thamrin. Indeed, the glass of the ESDM ministry building was crushed by rocks, the police post was destroyed, and the front yard of the US Embassy was littered with graffiti.
The protesters also attacked various public facilities. PT TransJakarta, for example, noted that eight bus stops were burned. Losses were estimated at IDR 48 billion.
The same riot occurred in West Java. To stop this action, several parties demanded that President Jokowi issue a government regulation instead of Uu (Perppu) on job creation.
The Governor of West Java, Ridwan Kamil, urged one of them when meeting with protesters in Bandung on Thursday (8/10). Emil urged it because he considered that there were several articles that were unfair to workers in the Employment Creation Law.
[Gambas:Video CNN]Emil said he would send a letter to Jokowi to continue the pressure.
“The content conveys the points of injustice that exist in the articles of the Omnibus Law, starting with severance pay, licensing issues, foreign worker permit issues, outsourcing issues, and other issues deemed approved too quickly for a law, “said Emil.
Constitutional law expert Bivitri Susanti believes the pressure to issue Perppu is quite reasonable.
In Law Number 12 of 2011 regarding the Formation of Legislation, the issuance of a Perppu can only be issued in case of imperative emergency. Therefore, efforts to get there must be made by extraordinary means and may give rise to reasons of urgency to force.
He added that were it not through Perppu, the chances of workers to win and cancel a series of articles that they consider problematic in the Employment Creation Law through a judicial review in the Constitutional Court (MK) would be minimal.
“The thinking of the current government is that the current government tends to defend investment interests,” he told CNNIndonesia.com on Friday (10/9).
He added that since the Employment Creation Law was still being discussed in the DPR, he and several other legal experts had questioned the presidential letter sent to the DPR to begin discussing the draft regulation in the Superior Administrative Court of the State (PTUN ).
The placement of the presidential letter as the subject of a lawsuit in the PTUN was carried out so that the principles of the Indonesian rule of law can work.
With the examination of the presidential letter by PTUN, the government can be controlled so that it is not arbitrary at the stage of drafting the law. This is because the legislative process cannot be left unchecked in all parts of the planning, drafting, deliberating, ratifying and enacting process.
If this lawsuit is won, he said, it could strengthen the chances of winning in the judicial review process of the Employment Creation Law in the Constitutional Court.
“It is true that there is a review process in the Constitutional Court after the promulgation of a law. But the principle of the rule of law implies that all stages of the process, including the drafting process, in the legislative process must apply the principles of participation and openness, “he said.
The economist of the Institute for the Development of Economy and Finance (Indef) Nailul Huda believes that canceling the Employment Creation Law is the most intelligent form of government amid the current conditions of the covid-19 pandemic. Because, according to him, there are still many articles in the regulation that are controversial and need to be discussed further.
After all, according to him, investment in Indonesia is now quite high. In fact, the role of investment in Gross Domestic Product (GDP) in the era of the Joko Widodo administration reached 34 percent and is considered the highest in Indonesian history.
The problem is that the quality of investment in Indonesia is currently minimal and this is not due to labor problems but to the large amount of corruption and bureaucracy in the country which is complicated.
“The main obstacle to investing in Indonesia is corruption. The second is bureaucracy. Labor regulations are the latest issue. However, what has changed enormously in the Job Creation Act is actually employment. So it is. like wrong medicine. The design from the beginning is wrong if I believe, “he said.
The poor quality of investment is also reflected in the high index of capital in addition to economic growth or the index of incremental capital production (ICOR).
This relationship reflects how much additional investment is needed to increase the growth of the Gross Domestic Product (GDP). The lower the ICOR, the greater the investment efficiency. On the contrary, if the ICOR is high, the investment will have less impact or will be inefficient.
Other than that, Indonesia’s current economic recovery does not depend on how many amenities are provided to investors, but on how quickly the government handles the pandemic.
“In fact, if I look at the Employment Creation Law, it will not be effective in increasing investment, especially short-term investments,” he said.
Impact on the investment climate
Yusuf Rendy Manilet, an economist at Indonesia’s Center for Economic Reform (CORE), believes there are bad consequences if the government repeals the law. One of them is the potential for investor concern about legal certainty in Indonesia.
This is because changes to the law are so rapid that the government is not consistent in enforcing the rules. “Only with the refusal of the workers, investors will wonder why. When the law was issued, just where the agreement was between the government, the employers and the workers,” Rendy said.
However, according to him, the potential for disruption of the investment climate due to the cancellation of the Employment Creation Law amid the current pandemic is very small. The reason is that many investment plans are currently delayed due to uncertain economic conditions.
On the contrary, if the Constitutional Court annuls the law when the economy has recovered, the impact on the investment climate in Indonesia will be significant.
He said, for example, that 153 potential investors called to the Investment Coordinating Board, ready to enter Indonesia when the economy recovers, could cancel their investments due to legal uncertainty.
“There will be legal insecurity which, in my opinion, is something that investors avoid. Even now, if the law continues, there will be legal insecurity because there is a lot of derivatives regulations in place. Wait and see, “he said.
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