Find out what the Omnibus bill for the creation of works consists of and its full content.

JAKARTA, KOMPAS.com – Workers will carry out a national strike movement in October 2020 (Demo Omnibus Law 2020) for three days starting tomorrow Tuesday (10/6/2020) This was done as a form of rejection of the Employment Creation Bill.

Previously, despite protests by unions in the country, the government and DPR did not give in and continued efforts to ratify the bill included in the omnibus bill package.

Currently, the Omnibus Job Creation Bill is awaiting approval at the DPR Plenary Meeting. At the Baleg meeting, two factions stated that they rejected this bill, namely the Prosperous Justice Party and the Democratic Party.

Meanwhile, up to seven factions have come to an agreement through the vision of mini factions, namely the Indonesian Democratic Party of Struggle (PDI-P), the Golkar Party, the Gerindra Party, the Nasdem Party, the of the National Awakening, the National Mandate Party and the United Development Party.

Also read: According to the government, these are the benefits of the Employment Creation Bill

So, what is the omnibus law that has become a controversy and has been rejected by the workers and what is the content of the Draft Law on Job Creation (what is the omnibus law)?

In terminology, omnibus comes from the Latin meaning for everything. In a legal context, the omnibus law is a law that can cover all or a law that regulates many things.

In other words, the omnibus law means a method or concept of making regulations that combines several rules with different regulatory substances into a single rule under one legal umbrella.

The job creation bill is only part of the general law. In the omnibus law, there are three bills that are ready to be enacted, including the bill on job creation, the bill on tax provisions and facilities for strengthening the economy, and the bill on development and strengthening of the financial sector.

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However, the Omnibus Law on Job Creation is the bill that receives the most public attention. In addition to being considered to contain many controversial articles, the Workers’ Union considered that the Job Creation Bill only addressed the interests of investors.

In essence, the Job Creation Bill is a package of Omnibus Law whose impact is the most influential on the wider community, especially the millions of workers in Indonesia. This is what causes many unions to desperately reject the Job Creation Act.

Meanwhile, quoted from the Academic Text of the Omnibus Job Creation Bill, there are 11 groups included in this law, which include the simplification of licenses, investment requirements, employment, ease of doing business, empowerment and protection of MSMEs, support for research and innovation, government administration, imposition of Sanctions, Land Acquisition, Investment Facility and Government Projects and Special Economic Zones.

Also read: So, controversy, what is the job creation bill?

In the process in parliament, there is no difference to the general law-making process as discussed in the DPR. However, the contents expressly revoke or modify various related laws.

Controversial article

The number of overlapping laws in Indonesia is trying to be resolved through the Omnibus Law. One of them is the labor sector. If approved, the job creation bill will revise several articles of law number 13 of 2003 on labor.

In the labor sector, the government plans to abolish, amend and add articles related to the Manpower Law.

For example, the government plans to change the reward scheme for laid off workers. The amount of reward money is determined based on how long the employee has worked at a company.

However, compared to the current regulations, Law No. 13 of 2003 on Manpower, the award scheme for the award of the Omnibus Law for Job Creation has decreased.

Also read: Airlangga Coordinating Minister: Job Creation Bill does not remove license fees

In the Omnibus Job Creation Bill, the government also plans to abolish the Termination of Employment Scheme (PHK), where there is an elimination of workers’ rights to file a lawsuit with labor relations dispute institutions.

The unions consider that several articles of the Omnibus Bill are detrimental to the bargaining position of the workers. One of the highlights was the elimination of the UMK minimum wage scheme, which was replaced by the UMP, which could reduce workers’ wages.

Then, the workers also question Article 79 which states that there is only one day of rest per week. This means that the obligation of employers to provide rest periods to workers or day laborers is decreasing in the Omnibus Bill on Job Creation.

If approved, the government is deemed to grant legality to entrepreneurs who have so far requested one day off a week. Meanwhile, two days off per week is considered a policy of each company that is not regulated by the government. This is seen as weakening the position of the workers.

Complete content of the Cipta Kerja bill of the Omnibus Law

Some of the provisions of the Job Creation Bill are also considered controversial, including those related to contract workers (fixed-time work arrangements / PKWT), wages, severance pay, labor relations, dismissal mechanisms (PHK) , conflict resolution of labor relations and social security.

The following is the content of the Job Creation Law Project (what is the omnibus law or what is the omnibus law):

Content of the copyright law of the complete work (PDF)

Also Read: Job Creation Bill Confirmed, Workers Threatened To Be Permanent Employees Forever?

Government claims

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the Omnibus Job Creation Bill would be very helpful in spurring national economic recovery and leading Indonesia into a new era of global economy.

“The Draft Law on Job Creation will promote regulatory reform and debureaucratization, so that Government services are more efficient, easy and safe, with the application of Norms, Standards, Procedures and Criteria (NSPK) and the use of systems electronic, ”said Coordinating Minister Airlangga in his official statement.

So far, Airlangga said, the issues that have often hampered increased investment and opening up job opportunities include the complicated and lengthy business licensing process, onerous investment requirements, difficult land acquisition, even suboptimal empowerment of MSMEs and cooperatives.

In addition, slow administrative and bureaucratic licensing processes ultimately hamper investment and job creation.

Also read: Reject Job Creation Act, Demo Ready Labor and Work Strike

Airlangga said the job creation bill was aimed at solving several problems that were hindering further investment and opening up job opportunities.

This is achieved through simplification of bureaucracy and licensing systems, facilities for business actors, especially MSMEs, an enabling investment ecosystem, and job creation to respond to the needs of the growing workforce.

He also said that the benefits that can be felt after the entry into force of the Job Creation Bill include MSME actors in the form of support in the form of convenience and certainty in the licensing process through OSS (Individual online shipping).

In addition, Airlangga said, there is convenience in the register of Intellectual Property Rights (HAKI), ease to establish an individual Public Company (PT), convenience with easy requirements and low costs, so that there is certainty of legality for commercial actors of MSMEs.

Not only that, the Cipta Kerja Bill Omnibus Law is also said to offer convenience in establishing cooperatives, by establishing a minimum number of establishments of just 9 people. The cooperatives also have a solid legal base to implement the business principles of sharia, as well as facilities in the use of technology.

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