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Jakarta, CNBC Indonesia – Indonesian capital market players consider that one of the most anticipated topics by domestic and foreign investors is the Omnibus Law, which is currently being discussed by the government and parliament.
The Omnibus Act is a Law (UU) designed to tackle a big problem that can change several laws at once to make it simpler.
There are three things that are focused on the Omnibus, namely, the tax law, the creation of employment opportunities and the empowerment of MSMEs. The Indonesian Parliament is in the process of processing the specific Omnibus Bill for job creation to be eliminated in October.
JPMorgan Sekuritas Indonesia Executive Director, Head of Research and Strategy Indonesia Hendri Wibowo assessed that one of the sentiments observed by global market players, including Indonesia, is the result of the US presidential elections. will be held on November 3 between Donald Trump and Joe Biden.
It’s just that a sentiment that market players, both foreign and domestic, will be waiting for, is actually the certainty of the Omnibus Law.
“We see that the market is waiting for the Omnibus Law. When it falls [DPR], it will become one of the most important policies since 1998, “he said on CNBC TV Indonesia’s Power Lunch program guided by Muhammad Gibran, quoted on Thursday (01/10/2020).
“Law Omnibus of objectives [Omnibus Law Cipta Kerja] “In May, due to the delay of Covid-19, the new target for October, the market is waiting long to see if it will be executed and the market is watching the content,” Hendri said.
He assessed that if the parliament in Senayan approves the bill, it will become a new law and its content is in accordance with market expectations, which means that it is accepted by the market and commercial actors, the conditions are anticipated financial market and capital markets are good.
On the contrary, if the content does not meet expectations, there is a possibility that the market will “rock”.
“The market will pay attention to what the content is, if it becomes law, if the content is not good, then the market is on its side, it is not moving, but it is taken advantage of and the content is good. I think it will be a catalyst positive for the market. JCI could reach the 5,000-6,000 level in 6-12 months in the future if the Omnibus Law is positive, “he said.
 Photo: The Indonesian Trade Union Confederation (KSPI) demonstrates in front of the DPR RI building. (CNBC Indonesia / Muhammad Sabki)The Indonesian Trade Union Confederation (KSPI) demonstrated in front of the DPR RI building. (CNBC Indonesia / Muhammad Sabki) |
On the other hand, with respect to the Omnibus Law, especially the Omnibus Law on the Draft Law on Job Creation, the Government and the Legislative Body of the House of Representatives (Baleg DPR) have completed the debate of level II of the list Issue Inventory (DIM) on Monday (9/28/2020).
Other market players also said that the market had been waiting for clarity on this bill, including local and foreign investment managers.
Eastspring Investments Indonesia’s chief investment officer, Ari Pitojo, said his party continues to monitor developments today. This is because the number of points established will determine the ease of investing in the future.
“Yes, we are very hopeful. The points are related to the ease of recruiting and firing workers,” Ari told CNBC Indonesia on Friday (8/14/2020).
The ease of laying off workers that the World Sweep Bill offers is truly beneficial to the corporate world. On the contrary, it hurts the workers. Apart from that, there are also other factors that determine this bill.
“The convenience is that there is certainty of costs, legal certainty of the possible demands of the employees and speed of reaction to changes in the economic and industrial situation,” explained Ari.
Ari assessed that one of the reasons why investors support the Omnibus Law is the movement of workers from one sector to another. The hope is that the Omnibus bill can regulate the worker problems that have been a burden on the corporate world.
“Nature demands this, because we are changing, demographic factors, climate change, economic crisis. All sectors have changed. If the mobility of the labor force is not fast, it will be difficult. For example, the migration from West Java to Central Java It is due to the UMK factor. Maybe this should be accommodated for leaders to wake up. region because it is influential, “he explained.
“Yes, we are very hopeful. The points are related to the ease of efforts to recruit and release workers,” he said.
According to him, the influence of the Omnibus Law, he said, would have a great impact on the industry as a whole. Mainly economic recovery during a pandemic. This rule will easily attract investors to enter the country and ease employment problems.
“If we look at the example of the world, digitization is developing. So a person works under contract with companies. That means it is important to move from one place to another,” he said.
On another occasion, previously, the vice president of DPR Baleg, Ahmad Baidhowi, explained the development of the Omnibus Bill for the Creation of Works.
He said that after the DIM level II (problem inventory list) was resolved, the Formulation Team (Timus) would proceed with the Job Creation Bill. Discussions at the Thymus level will also remain closed.
All SIDs have been discussed in 55 panja meetings or almost 5 months of discussion since April 2020.
In the Omnibus Law Project for the Creation of Works, there will be 15 chapters and 174 articles, which are a form of rationalization of 79 laws with 1,244 articles, with 11 clusters.
The 11 groups are simplification of land permits, investment requirements, employment, convenience and protection of MSMEs, ease of doing business.
Other groups include research and innovation support, government administration, sanctions, land control, government project facilities, and special economic zones (KEK).
If things don’t get in the way, the Job Creation Bill may be passed on October 8, 2020 at the DPR Plenary Session.
There are some substantial things, including the non-withdrawal of the authority of the Regional Government to the center, the formation of three bodies, including the Agency for the Acceleration of Housing Development, the Land Bank and the Investment Management Institution (LPI) or the Sovereign Wealth Fund (SWF), and the article on Press and Education was canceled from the bill. Employment creation.
Regarding the labor cluster in the Job Creation Law Project, it has been discussed at level II of the work committee between DPR Baleg and the government, within three days, from Friday (9/25/2020) to Sunday (9/27/2020).
The protection of workers remains a priority and nothing has changed with respect to Law No. 13 of 2003 on Manpower.
In fact, DPR Baleg states that certain jobs that are not regulated in existing law will be regulated in the Job Creation Bill.
Regarding a fixed-time work contract (PKWT), which is substantially agreed, that is, for example, if there is a delegation of functions of workers from one company to another, halfway through. This is related to the essence of outsourcing or outsourcing.
As for the severance pay, the government and DPR Baleg will agree to remain at 32 times the salary. The details are up to 23 times more covered by the employer or employer, and the rest is borne by the government, through the Job Loss Guarantee (JKP).
Then, regarding the minimum wage for workers, the government and DPR Baleg made sure not to include the labor-intensive minimum wage in the Employment Creation Bill. However, the government and Baleg have agreed that the minimum wage should be based on economic growth in regions with certain conditions.
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