Omnibus Law Creation of employment, meaning and content of the Omnibus Law that harms workers



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Suara.com – What is the Omnibus Law for job creation? And what is the impact of the Omnibus Law? Here is the explanation!

The movement does not believe that the Omnibus bill creates work

The plenary session of the DPR RI has ratified the Omnibus Job Creation Bill (RUU) that has been approved by 7 factions made up of PDIP, Golkar, Gerindra, NasDem, PKB, PPP and PAN, but there are 2 factions that they reject, namely the Democratic Party and the PKS. . Furthermore, the civil society coalition that are members of the Indonesian People’s Faction (FRI) firmly rejects and declares a motion of no confidence in the Omnibus Job Creation Bill.

Bill to Create Legal Work

Appearance of members of the House of Representatives in the plenary hall before the ratification of the Copyright Bill.  (Voice.com/Novian)
Appearance of members of the House of Representatives in the plenary hall before the ratification of the Copyright Bill. (Voice.com/Novian)

The DPR together with the government finally agreed to ratify the Job Creation Bill. The agreement was carried out through the results of the plenary session this afternoon.

Prior to its approval, the DPR leadership leading the meeting, Azis Syamsudin, invited DPR RI President Baleg Supratman Andi Agtas to read the working committee report on the Job Creation Bill.

However, along the way, the ratification process for the Job Creation Bill was tinged with debates that generated tension until the Democratic Party faction left the plenary session.

The meaning of the Cipta Kerja omnibus law

Demonstration of workers against the Omnibus Law in the DPR RI building, Monday (1/20/2020).  (Voice.com/Stephanus Aranditio)
Demonstration of workers against the Omnibus Law in the DPR RI building, Monday (1/20/2020). (Voice.com/Stephanus Aranditio)

The Omnibus Law is a rule that regulates several aspects that are combined in a law or it can be said that a law regulates many things. This Omnibus Law has 79 laws with 1,244 articles that were revised through the Omnibus Law. The law was revised to facilitate investment in Indonesia.

The Job Creation Law Project may also change the provisions for special permits or permits listed in Law Number 13 of 2003 that regulates employment that eliminates leave or absence during the first day of menstruation, the need for marriage, marriage , circumcision, infant baptism, wife giving birth / miscarriage in utero. until a family member dies in a house. In addition, the Cipta Kerja Ombnibus Law will also provide space for employers who hire workers indefinitely, do not defend labor rights such as severance pay, and stipulate minimum wages as provincial regulations and subcontracting of workers are increasingly unclear.

The Omnibus Law proposed by the government to the Indonesian Parliament are the Employment Creation Bill, the Tax Omnibus Law, the New Town Omnibus Law and the Pharmaceutical Omnibus Law. The Cipta Kerja Omnibus Law includes 11 groups, including:

  1. License simplification
  2. Investment requirements,
  3. Facilities, empowerment and protection of SMEs,
  4. Support for research and innovation,
  5. job
  6. Imposition of sanctions,
  7. Economic space,
  8. Ease of effort
  9. Acquisition of land,
  10. Investments and government projects,
  11. Government administration

Meanwhile, the Omnibus Tax Law includes,

  1. Investment financing
  2. Territorial system
  3. Individual tax subjects
  4. Taxpayer compliance
  5. Work climate Climate
  6. Mod cons

Impact of the Omnibus Law that is considered detrimental to workers

Greenpeace activists posted posters on mannequins during a peaceful demonstration against the discussion of the job creation bill in front of the Parliament Complex, Senayan, Jakarta (Doc Antara Photo / Aditya PradanaPutra)
Greenpeace activists posted posters on mannequins during a peaceful demonstration against the discussion of the job creation bill in front of the Parliament Complex, Senayan, Jakarta (Doc Antara Photo / Aditya PradanaPutra)

The following are the contents of the Omnibus Employment Creation Law that is considered detrimental to workers.

  1. Related to the minimum wage
    In article 88C of the bill, the governor establishes the minimum wage as a safety net. And he also explained that the minimum wage is the provincial minimum. In Government Regulation (PP) Number 78 of 2005, the determination of salaries is carried out in the province and district / city / thus determining the UMP as the only reference for the value of the salary.
  2. Reduce severance pay
    The government will cut the severance pay that employers demand if they are laid off (termination of employment). The value of severance pay for workers has decreased because the government considers that the regulations in force in Law Number 13 of 2003 on labor matters are not implemented.
  3. Withdrawal of special permits or license
    The Employment Creation Law Project modifies the provisions on special licenses or permits listed in Law Number 13 of 2003 on employment. The removal of special permits or license, among others, for leave or absence during the first day of menstruation, the need for marriage, marriage, circumcision, baptism of children, wife giving birth / spontaneous abortion in utero, until death a family member in a house.
  4. Outsourcing is becoming less clear
    The Omnibus law makes the fate of subcontracted workers even more confusing because it eliminates articles 64 and 65 of the Manpower Law that regulate the subcontracting of workers. Meanwhile, article 64 of the Labor Law says; The company can assign part of the execution of the workers to other companies through a written agreement for the provision of worker / labor services. Article 65 regulates; (1) The shipment of part of the execution of the work to another company is carried out by means of a written contract for the contracting of the work. Paragraph (2) regulates; (2) the work that can be sent to another company as indicated in paragraph (1) must meet the following requirements: performed separately from the main activity; executed by direct or indirect order of the employer; It is a company that supports the activity as a whole; and does not directly hinder the production process.
  5. Provide space for employers to hire a worker indefinitely.
    The general labor copyright law will provide space for employers to hire a worker or day laborer indefinitely. This Draft Law for the Creation of Employment eliminates the provisions of Article 59 of Law 13 of 2003 on Labor. This article regulates the rules for a specific working time agreement (PKWT). PKWT can only be performed for a maximum of two years and can only be extended once for a maximum period of one year.

Impact of the Omnibus Law that is considered detrimental to women

Hundreds of people who rejected the Omnibus Bill were unable to go to the DPR RI building because they were blocked by barbed wire.  (Voice.com/Arga).
Hundreds of people who rejected the Omnibus Bill were unable to go to the DPR RI building because they were blocked by barbed wire. (Voice.com/Arga).

The Chamber of Deputies and the government finally agreed to ratify the Work Creation Law Plan. The agreement was carried out through the results of the plenary session this afternoon.

Although the bill is still considered imperfect and may harm society. One of them are women.

The program coordinator of the National Executive Board for Women, Arieska Kurniawaty, said that at least 5 notes in the Omnibus Job Creation Bill could threaten the sovereignty of women.

First, this bill is seen as a step back from the government’s commitment to gender analysis in the environment through Amdal (Environmental Impact Analysis) and KLHS (Strategic Scoping Study).

“In the ministerial regulation and clearly mentioning women as one of the interest groups that should be involved in the AMDAL and KLHS consultations, the government can be overridden through this regulation,” Arieska said in an online discussion held on Monday (10/5/2020).

Second, the omnibus law facilitates or guarantees ease of investment in ownership and control of land, which in effect displaces people.

According to him, for women the situation should be more difficult because this will widen the inequality experienced by the government.

“Third, we will see how this bus threatens food security, one of which is due to the fact that there are provisions that equalize the position of national food production and national reserves with food imports as a source of food supply.” , He said.

Arieska said the domestic market was flooded with imported materials.

This is clearly detrimental to women who are partly subsistence food producers.

As for the fourth threat, the Omnibus Law, it has worsened the protection rights of women workers.

“I do not know if she is left out due to menstruation or miscarriage because she only mentions the annual leave or other long leaves that are regulated at work. And the fifth point for us is the massive land grabbing, the difficulty of job opportunities and the reduction of labor rights encourages labor migration, “he said.

In addition, Arieska emphasized, the rejection of the Omnibus Law for the Creation of Jobs must be expressed. Measures like mass strikes can have a big effect.

“That is why it is important that we consolidate ourselves to express our rejection and in fact we have to go on strike because if we stop the world we stop,” he said.

Collaborators: Muhammad Zuhdi Hidayat



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