Knowledge (XXG)

Omnibus Law on Job Creation

Source ๐Ÿ“

35: 349:. The law abolishes fines for entrepreneurs who are late in paying wages. Previously, law No. 13 of 2003, the Manpower Law (also referred to as the Labor Law) permitted a maximum of seven hours of work per day, cumulatively making the maximum permissible hours of work per week limited to forty hours. The previous law also did not allow any kind of part-time work as a legal form of employment. 253:)โ€”a DPR body of eighty legislators from nine political parties. The Legislative Council was supposed to hold meetings to discuss concerns over the bill, but it instead formed a working committee for this purpose. The working committee, which did not contain representatives of all political factions in the DPR, began discussing the bill with the government on 14 April. 264:
Following revisions of some contentious articles, the bill was passed by the DPR on 5 October 2020, three days ahead of a revised schedule and before another round of planned protests by labour unions. Just hours before the passage, thirty-five investment firms sent a letter warning the government of
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issued its decision, calling the law "conditionally unconstitutional". It ordered the government and People's Representative Council to "repair" the law from issues surrounding it over two years. The government and People's Representative Council shall not issue any derivative laws based on this law.
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to promote the bill and counter opposition on the internet, while advertising campaigns supporting the bill were launched. One such influencer, singer Ardhito Pramono, later apologized on Twitter and stated he was paid to promote the bill. In addition to celebrities, other influencers and anonymous
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Rules were relaxed for foreign workers, to ease hiring of foreign labor. Before the law was passed, outsourcing was only allowed for jobs that did not directly relate to production. Foreign nationals residing (for more than 183 days a year) in Indonesia will not be taxed for income earned abroad.
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A number of typos in the final version of the law raised the suspicion that it was passed in haste. Academic Bivitri Susanti expressed the view that the Job Creation Law had several procedural breaches that made it not legally acceptable. Feri Amsari criticized the illegal revisions of the final
179:(DPR), with the aim of creating jobs and raising foreign and domestic investment by reducing regulatory requirements for business permits and land acquisition processes. Due to its length of 1,035 pages and its coverage of many non-employment sectors, it is also referred to in Indonesia as an 249:. The government set a target of having deliberations conclude within one hundred days. However, the DPR leaders did not commence formal talks on the bill until 1 April 2020, when they discussed whether it should be deliberated on by a special committee or by the DPR's Legislative Council ( 183:. The final draft was changed to 812 pages due to pagination being changed to legal format. After being passed into law, there were various substantial text alterations and deletions, as well as procedural issues, which made its legal status eligible for being formally annulled. 481:
Since February 2020, many protests have been held around Indonesia in front of DPRD buildings and on various streets. Some protests have been peaceful, while others have turned violent, causing the destruction of property, as well as fatalities and arrests.
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The law stipulates that the structure and scale of wages is to be determined by a company's capabilities and productivity. This abolishes the Manpower Law's previous determination of wages based on position, years of service, education, and competence.
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The draft version of the bill was criticized by elements of the Indonesian media, human rights groups, workers' unions, and environmentalists for favouring oligarchs and restricting people's civil rights. On the other hand, the
421:. In addition, environmental experts will no longer be involved in environmental impact analysis. The law hands over land use and authority permits to the central government and raises the fine for environmental damage. 360:
from 32 months' salary to 19 months' salary, plus six months' pay provided by the government. It also changes the 1-month of pay for every year of work standard for severance pay from the minimum pay to the limit.
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In an effort to save the law, the People's Representative Council passed the Bill of Law Formulation on 24 May 2022, which enables the formulation of omnibus law regulation. Indonesian president
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limits are increased to four hours per day and 18 hours per week, and mandatory holidays are reduced from two days a week to just one. The law also abolishes 2 months of long-service
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draft after the validation carried out by parliament that could bring a jail term for breaking Criminal Code section 264 relating to the crime of falsifying authentic documents.
1797: 325:. The sovereign wealth fund will contain Rp 75 trillion (US$ 5.1 billion) in order to "attract investment" and "support the economy". This resulted in the establishment of the 1213: 79: 519:
accounts were mobilized to populate social media with pro-Omnibus Law posts and deter criticism by using harsh words, harassment, and hoax accusations towards activists.
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Environmental regulations for businesses were relaxed for projects not classified as "high risk", though such high-risk companies were still required to file an
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The government initially aimed to submit the omnibus bill on job creation to the DPR in December 2019, but failed to meet its own deadline. On 12 February 2020,
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Rules for firing workers were relaxed and the required process of applying to an institution when firing workers, designed to protect
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declared his intention to revise laws that inhibit job creation. He later said the revisions would be made in omnibus laws.
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The law has been criticized on the basis of concerns it will harm labour rights and indigenous land rights, and increase
1881: 297: 1455: 34: 1628:"Omnibus Law: Apa konsekuensi jika draf yang disepakati DPR dan pemerintah 'diubah' dan 'tak sesuai prosedur hukum'?" 216:
On 30 December 2022, the amendment of the law, Government Regulation in Lieu of Law No.2/2022, was signed by Widodo.
794: 758: 632: 1876: 546:, stated his opposition to the bill and decried it for only benefitting capitalists, investors, and conglomerates. 187: 1866: 897: 202:
If the law isn't rectified in two years, it will be declared void and any amendments made to it will be undone.
573: 301: 293: 285: 1554:"Dari Kontrak Seumur Hidup hingga PHK Sepihak, Ini 8 Poin UU Cipta Kerja yang Jadi Sorotan Buruh Halaman all" 1472: 1722: 289: 322: 1798:"SETELAH Puji UU Cipta Kerja, Jenderal Gatot Nurmantyo: Catat! Saya Keluar dari KAMI Jika Jadi Parpol" 531:
and by 35 international investment institutions which collectively manage US$ 4.1 trillion in assets.
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will be gradually lowered from currently 25% to 22% (starting 2022) and finally 20% (starting 2025).
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The law shrinks the list of industries barred from receiving private investment from 300 to six:
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The law mandates the creation of an "Investment Management Agency" that would be managed by the
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agrees with the law, saying, "I'll leave KAMI if it turns into a political party". Chairman of
640: 223:, was passed. On 31 March 2023, as the new law commenced, the 2020 Omnibus Law was repealed. 588: 539: 515: 438: 1700:"The Hashtag Battle over Indonesia's Omnibus Law: From Digital Resistance to Cyber-Control" 580: 569: 543: 397: 389: 346: 125:
79 acts. incl. the Labour Act, Spatial Planning Act, and the Environmental Management Act.
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by sector, but allows regencies and cities to set minimum wages using a formula based on
952:"Pemerintah Terbitkan Perpu No 2/2022 Pengganti UU Cipta Kerja, Ini Pokok-pokok Isinya" 584: 553: 304:. It was signed into law by Widodo on 3 November 2020, becoming Law Number 11 of 2020. 818:"Court: Conditionally Unconstitutional, Job Creation Law Must Be Revised in Two Years" 1860: 1327:"'Prioritized': Indonesia to establish $ 5b sovereign wealth fund to support economy" 1214:"Omnibus Law 'clearly and explicitly in the interests of the oligarchy': LBH Jakarta" 357: 246: 1851: 1627: 579:
Founder of opposition organization Action for Rescuing Indonesia Coalition (KAMI),
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on 16 June 2022, effectively starting the process of revising the legislation.
1771:"Gubernur Sumbar Irwan Prayitno Sampaikan Aspirasi Buruh Tolak UU Cipta Kerja" 557: 378: 366: 53: 644: 561: 503: 342: 172: 62:
Undang-Undang Republik Indonesia Nomor 11 Tahun 2020 Tentang Cipta Kerja (
1823:"Prabowo Sebut Demo Tolak UU Cipta Kerja dibiayai Asing, Gerindra Nilai?" 491: 434: 362: 277: 510:#IndonesiaButuhKerja (English: #IndonesiaNeedsJobs) was used by several 231:
On 20 October 2019, after being sworn in for his second term, President
1434:"Poin-Poin Perubahan UU Ketenagakerjaan di Omnibus Law Cipta Kerja (I)" 795:"Explainer: Indonesia bets on 'omnibus laws' to fix investment climate" 507: 499: 495: 393: 385: 273: 143: 1381:"Poin-Poin Isi UU Cipta Kerja Omnibus Law Soal Pesangon hingga Upah" 1032:"Jokowi Convey 5 Work Programs in Presidential Inauguration Speech" 1005:"Perpu Cipta Kerja Jadi Undang-Undang, Berlaku Mulai 31 Maret 2023" 1101:"Guide to omnibus bill on job creation: 1,028 pages in 10 minutes" 844:"MK Minta UU Cipta Kerja Diperbaiki, Dilarang Buat Aturan Turunan" 1353:"Indonesia's planned $ 5b sovereign wealth fund raises questions" 871:"DPR Sahkan Revisi UU PPP, Atur Metode "Omnibus Law" Halaman all" 171:, or UU 11/2020), is a bill that was passed on 5 October 2020 by 719:"Draf RUU Cipta Kerja diperbarui lagi, berubah jadi 812 halaman" 506:
posted content supporting the bill during its deliberation. The
1054:"Selain Cipta Kerja, Ini Daftar UU Kontroversial yang disahkan" 1674:"Influencer di Lingkaran Kampanye Omnibus Law RUU Cipta Kerja" 925:"Tok! Jokowi Terbitkan Perpu Nomor 2/2022 Tentang Cipta Kerja" 741:"Salah Ketik Bukti Penyusunan Uu Cipta Kerja Cacat Prosedural" 194:
are ongoing as of October 2020, demanding the law be revoked.
1610:"Pakar Penghapusan Pasal Di UU Ciptaker Bukti Cacat Prosedur" 1301:"Jokowi Teken UU Ciptaker 1.187 Halaman, Nomor 11 Tahun 2020" 697:"Final Draft of Job Creation Law Confirmed to be 1,035 Pages" 1247:"Indonesia: Thousands protest against 'omnibus law' on jobs" 1585:"5 things you need to know about omnibus bill on taxation" 1473:"All You Need To Know About Hiring Employees In Indonesia" 1745:"Usai Ridwan Kamil, PKS Minta Presiden Keluarkan Perppu" 1524:"Rincian Aturan Upah Pekerja dalam Omnibus Law Ciptaker" 1170:"Omnibus Is Throwing People and Democracy under the Bus" 1073:"Government sends omnibus bill on job creation to House" 777:"Otak Atik Omnibus Law Dan Dugaan Para Penunggang Pasal" 674:"What to Know About Indonesia's Investment Law Overhaul" 542:, chairman of Indonesia's largest Islamic organization, 268:
The passing of the bill was supported by seven parties:
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Undang-Undang Nomor 11 Tahun 2020 Tentang Cipta Kerja
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the bill's harmful consequences to the environment.
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On 21 March 2023, the amended law, presented as the
129: 119: 111: 103: 93: 74: 41: 23: 486:Role of social media influencers and fake accounts 1276:"Indonesia passes jobs bill as recession looms" 135:Government Regulation in Lieu of Law No. 2/2022 477:Indonesia omnibus law protests ยง Protests 8: 1147:"Major procedural flaws mar the omnibus law" 816:Nano Tresna A.; Lulu A. (25 November 2021). 396:will be required to charge customers a 10% 259:Indonesian Chamber of Commerce and Industry 759:"Pakar Nilai UU Cipta Kerja Layak Digugat" 240:Coordinating Minister for Economic Affairs 1723:"Selling the Omnibus Law on Job Creation" 1698:Sastramidjaja, Yatun; Rasidi, Pradipa P. 950:Mediatama, Grahanusa (30 December 2022). 898:"Jokowi Resmi Teken UU PPP Nomor 13/2022" 190:by reducing environmental protections. A 1241: 1239: 1237: 1235: 1233: 1231: 1122:Dongoran, Hussein Abri (14 April 2020). 1071:Akhlas, Adrian Wail (12 February 2020). 695:Putri, Budiati Utami (12 October 2020). 1796:Santoso, Agung Budi (17 October 2020). 616: 529:International Trade Union Confederation 369:for workers employed for over 6 years. 59: 1672:Persada, Syailendra (16 August 2020). 631:Paddock, Richard C. (5 October 2020). 296:. It was rejected by two parties: the 20: 1721:Mufti, Lailuddin; Rasidi, Pradipa P. 1579: 1577: 1575: 1547: 1545: 1543: 1541: 1375: 1373: 1270: 1268: 1094: 1092: 1090: 7: 1456:"law No. 13 of 2003 on Manpower Law" 1432:Al Faqir, Anisyah (8 October 2020). 842:Indraini, Anisa (25 November 2021). 667: 665: 663: 661: 626: 624: 622: 620: 1351:Lingga, Vincent (26 October 2020). 1168:Achmadi, Julio (12 February 2020). 1099:Samboh, Esther (24 February 2020). 869:Media, Kompas Cyber (24 May 2022). 672:Sihombing, Grace (7 October 2020). 490:Indonesian internet influencers on 245:submitted the bill to DPR Speaker 165:Act Number 11/2020 on Job Creation 14: 1030:Rahma, Andita (20 October 2019). 822:Constitutional Court of Indonesia 1307:(in Indonesian). 3 November 2020 1145:Argama, Rizky (9 October 2020). 221:2023 Omnibus Law on Job Creation 84: 33: 1751:(in Indonesian). 8 October 2020 1526:. CNN Indonesia. 6 October 2020 1413:(in Indonesian). 7 October 2020 1124:"Omnibus Law, In Corona Flavor" 572:, respectively, along with the 177:People's Representative Council 98:People's Representative Council 64:Act No. 11/2020 on Job Creation 43:People's Representative Council 605:Indonesia omnibus law protests 527:The bill was condemned by the 327:Indonesia Investment Authority 321:for the purpose of creating a 1: 1216:. Kompas.com. 20 January 2020 419:environmental impact analysis 441:, and industrial chemicals. 797:. Reuters. 12 December 2019 356:The law reduces the cap on 1898: 977:Febriyan (21 March 2023). 595:was funded by foreigners. 474: 384:Digital companies such as 188:deforestation in Indonesia 1852:PDF Draft (in Indonesian) 1499:"TRAVAIL legal databases" 1194:. Tempo.co. 19 March 2020 721:. Kompas. 13 October 2020 197:On 25 November 2021, the 161:Undang-Undang Cipta Kerja 139: 134: 124: 48: 32: 27:Undang-Undang Cipta Kerja 1149:. Indonesia at Melbourne 574:Prosperous Justice Party 1192:"Dangerous Omnibus Law" 896:Rizqo, Kanavino Ahmad. 227:Background and passing 160: 1645:Media, Kompas Cyber. 1552:Media, Kompas Cyber. 323:sovereign wealth fund 313:Sovereign wealth fund 1872:Society of Indonesia 261:supported the bill. 199:Constitutional Court 1882:Omnibus legislation 1827:nasional.kompas.com 1702:. ISEAS Perspective 923:Yanwardhana, Emir. 437:, endangered fish, 16:2020 Indonesian law 1725:. Inside Indonesia 1103:. The Jakarta Post 1075:. The Jakarta Post 637:The New York Times 337:The law abolishes 333:Pay and work hours 243:Airlangga Hartarto 192:series of protests 78:"UU Cipta Kerja", 1877:2020 in Indonesia 1829:. 18 October 2020 1479:. 11 January 2021 209:later signed the 149: 148: 1889: 1867:Law of Indonesia 1839: 1838: 1836: 1834: 1819: 1813: 1812: 1810: 1808: 1793: 1787: 1786: 1784: 1782: 1767: 1761: 1760: 1758: 1756: 1741: 1735: 1734: 1732: 1730: 1718: 1712: 1711: 1709: 1707: 1695: 1689: 1688: 1686: 1684: 1669: 1663: 1662: 1660: 1658: 1642: 1636: 1635: 1634:(in Indonesian). 1624: 1618: 1617: 1616:(in Indonesian). 1606: 1600: 1599: 1597: 1595: 1589:The Jakarta Post 1581: 1570: 1569: 1567: 1565: 1549: 1536: 1535: 1533: 1531: 1520: 1514: 1513: 1511: 1509: 1495: 1489: 1488: 1486: 1484: 1469: 1463: 1462: 1460: 1452: 1446: 1445: 1443: 1441: 1429: 1423: 1422: 1420: 1418: 1403: 1397: 1396: 1394: 1392: 1377: 1368: 1367: 1365: 1363: 1357:The Jakarta Post 1348: 1342: 1341: 1339: 1337: 1331:The Jakarta Post 1323: 1317: 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Index


People's Representative Council
Long title
Law No. 11/2020
People's Representative Council
Repealed
Indonesian
Indonesia
People's Representative Council
omnibus bill
deforestation in Indonesia
series of protests
Constitutional Court
Joko Widodo
formulating law
2023 Omnibus Law on Job Creation
Joko Widodo
Coordinating Minister for Economic Affairs
Airlangga Hartarto
Puan Maharani
Indonesian Chamber of Commerce and Industry
PDIP
Golkar
Gerindra
Nasdem
PKB
PAN
PPP
Demokrat
PKS

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