On October 5, 2020, the Omnibus Law on Job Creation was passed into law. The enactment immediately drew mixed reactions from the public. Some felt the law was good news (for investors, traders, financiers, capital owners, and many other types of capitalists), while others said it was sad news for the Indonesian nation.
How could it not be, amidst the economic downturn caused by the COVID-19 pandemic, the government and the House of Representatives (DPR) are rolling out the red carpet for profiteers seeking to maximize profits. While the government should be focused on resolving the pandemic, it's instead imposing unfavorable regulations early on.
Undeniably, various arguments from many perspectives have been voiced regarding the injustice of the Omnibus Law on Job Creation since its public release. Many key points have come under scrutiny in the Job Creation Bill, for example, regarding employment. Many believe that the Job Creation Bill, instead of favoring workers, exploits them.
In the Job Creation Bill, many employment-related articles have been questioned by the public, such as the elimination of workers' leave rights, increasingly exploitative working hours, hourly wages, the absence of post-retirement rights, and many other issues.
No less controversial about the potential impacts of exploitation on workers, the Job Creation Bill is also considered highly extractive towards the environment. Before the law was passed, the Sustainable Madani Foundation assessed that the Job Creation Bill revealed a study that revealed its serious disregard for environmental interests, even posing a threat to the sustainability of natural forests and Indonesia's climate commitments.
According to findings by the Madani Berkelanjutan Foundation, five Indonesian provinces are at risk of losing all their natural forests due to the rapid rate of deforestation caused by the Job Creation Bill. These five provinces are Riau, Jambi, South Sumatra, Bangka Belitung, and Central Java.
In more detail, Riau Province will lose all its natural forests in 2032, Jambi and South Sumatra Provinces will lose all their natural forests in 2038, Bangka Belitung Province will lose all its natural forests in 2054 and Central Java Province will lose all its natural forests in 2056.
Clearly, the loss of natural forests also means Indonesia is losing momentum in strengthening its commitment to combating the increasingly alarming climate crisis. In relation to its climate commitments, outlined in its Nationally Determined Contribution (NDC), Indonesia has set a target of reducing greenhouse gas (GHG) emissions by 29% from the 2030 baseline through its own efforts and 41% with international assistance.
The National Development Planning (NDC) itself is a key component of the Paris Agreement , which contains a statement of commitment from many countries to efforts to halt climate change. Regarding Indonesia's climate ambitions, many consider the NDC's targets to be under-ambitious considering Indonesia's potential.
On the other hand, many argue that this target will be difficult to achieve unless the government takes extraordinary measures or makes breakthroughs to protect the environment, forests, and nature. Therefore, the Job Creation Law makes this target even more unrealistic.
Confusion of Information
After the bill was passed into law, the myriad of previously outlined issues became less clear and even less relevant. Why is this? The answer, of course, is because the draft Job Creation Law that was passed was difficult for the public to access.
Rationally, how can anyone possibly provide a comprehensive view if they don't even know the actual details (the Job Creation Law)?
Currently, all critics of the Job Creation Law are using analysis from the draft bill. This means that everyone who commented after the law was passed until the actual law was released to the public is feeling like they're groping in a dark room.
The drafting of this law clearly sets a bad precedent in the history of regulatory formulation in this country, as it appears to have been rushed and concealed. It's understandable that the public is highly suspicious of the Job Creation Law.
The uncertainty that has led to conflicting information among the public is certainly not to blame. The government cannot blame the public for spreading false news ( hoaxes ) based only on analysis of the bill. Similarly, the public cannot substantively criticize the law because the actual material itself is missing.
To untangle the tangled threads currently floating to the surface, it would be wise for the government to quickly finalize the law and disseminate it to the public. Clearly, in a time of uncertainty, blaming each other is not a good idea.
As a society, we firmly believe that the government has worked hard to serve the public, despite its numerous limitations and shortcomings. However, the principles of good governance will not be realized if transparency and accountability are not effectively implemented.
This law is certainly very important because it could be considered a major breakthrough if it truly sides with the people without any vested interests, although that seems unlikely. Just imagine, for the first time, Indonesia has a law that combines 79 laws with over a thousand impacted articles. This is truly a breakthrough.
Regarding the Job Creation Law itself, the government claims that one of its goals is to simplify the licensing process. The tangled permitting process is considered a major obstacle to investment.
In fact, the problem faced in the licensing process, especially those related to the environment and natural resources (SDA), is rampant corruption. The 2017-2018 Global Competitiveness Report noted that corruption is the primary issue affecting the ease of doing business in Indonesia.
If all criticism of the Job Creation Law were truly a hoax , as claimed by some members of the House of Representatives, the government, and many other pro-Job stakeholders, many of those who have criticized it might even give it the thumbs up. However, once again, we are all in a state of uncertainty, not only the public but also the government. Certainty is a necessity at this time, especially for investment and the direction this nation is headed.
By: Delly Ferdian
The article was published on the Mongabay portal on October 17, 2020.
