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The Omnibus Law Plan (Labor Law) (RUU) that was approved as Law (UU) through the Plenary today received criticism. One of them came from the Executive Director of the Center for Development Studies and also from the member of the House of Representatives Adhi Azfar.
He explained that the omnibus law is pro against foreigners who are considered to have controlled Indonesia’s natural resources for a long time.
“Foreign capitalists have been around for a long time to dominate Indonesia’s natural wealth. With the passing of the Omnibus Law on Job Creation, they are now preparing for a big party. Entry into the country is increasingly rampant,” said in a written statement received. detikcom, Monday (05/10/2020).
1. Criticisms of special economic zones
A very crucial article that opens the door to foreign interests, he explained, is in article 38 relating to the amendment to the Special Economic Zone Law (KEK), where the Draft Law on Job Creation makes things easier for foreigners even if they are not commercial actors of KEK.
Not just convenience, he explained that the Job Creation Bill also provides immigration and security facilities for foreigners entering Indonesia through KEK.
“While in the current Law (Law No. 39 of 2009 on Special Economic Zones), the facilities are only provided to commercial actors who have business licenses in KEK, both in the industrial and commercial sectors., “He explained.
Without that clause only, he continued, a China smelting (refining) factory has now been established. The nickel ore smelter on the island of Sulawesi receives a tax holiday incentive (tax exemption) for 25 years.
He said that workers imported from abroad do not use worker visas either, but rather have the status of tourists and hundreds of thousands of hectares of mining areas are controlled by them.
“So what country do you have? Payroll taxes? Apparently not. Foreigners working for the company are “paid” in the form of living expenses, accommodation and pocket money. Meanwhile, the original salary is sent to her family in her home country., “he said.
According to him, taxes on corporate income do not necessarily exist because facilities to facilitate investment and exemption from taxes on imports and other tax facilities may be higher than the corporate tax received by the state.
The entry of imported goods also has no further restrictions. He said that it can be seen in articles 27 and 32 of the amendment to the KEK Law, where the Omnibus Job Creation Bill even provides facilities for the importation of consumer goods to KEK, both tax and customs, although the main business activity is not production and processing.
“This provision damages the sense of justice for the small companies in their environment, which will be affected and displaced from their own land, interspersed with the presence of foreign capitalists. The owners of large capitals are present to take away the right of the Indonesian people to enjoy the wealth of their own nation, “he emphasized.
Continued on the next page.
