Evaluating The Implications of Indonesia's Omnibus Law: Legal, Political, and Economic Perspectives

Vincentius Pantjahjono Heru Prasetyo, Rian Cahyo Bagastianto, Anjas Widayanto, Oktavia Patma Sulistyani, Heru Tri Yanto, Ainul Masruroh

Abstract


The Omnibus Law in Indonesia, enacted as Law No. 6 of 2023, has generated significant debate regarding its legal, political, and economic implications. The law seeks to simplify complex regulations and promote investment by overhauling approximately 80 existing laws across various sectors. Its primary aim is to foster economic growth, ease business processes, and create job opportunities. However, the law has been met with strong opposition from various stakeholders, including academics, labor unions, and NGOs, who argue that it disproportionately benefits corporations and foreign investors while undermining labor rights and environmental protections. This research aims to analyze the legal, political, and economic implications of the Omnibus Law, evaluating its effectiveness in achieving its intended goals while assessing its impact on labor rights and democratic governance. The study employs a normative legal research methodology, focusing on doctrinal analysis of the law’s provisions, consistency with constitutional principles, and alignment with democratic values. The findings reveal that while the law has the potential to stimulate economic growth, its legal ambiguities and bureaucratic inefficiencies pose challenges to effective implementation. Furthermore, concerns about transparency in the legislative process and the potential exacerbation of social inequality underscore the need for further refinement. The study concludes that the law must be adjusted to better align with Indonesia’s constitutional principles and social justice ideals.


Keywords


Omnibus Law; Labor Rights; Economic Growth, Democratic Governance, Legal Reform

Full Text:

PDF

References


Journals:

Al’afghani, M. M. (2021). Konsep Regulasi Berbasis Risiko: Telaah Kritis dalam Penerapannya pada Undang-Undang Cipta Kerja Risk Based Regulation: Critique to Its Adoption in the Job. Jurnal Konstitusi, 18, 68.

Antari, P. E. D. (2022). The Implementation of Omnibus Law in Indonesia Law Making Process on Philosophy Review. De Jure: Jurnal Hukum dan Syar'iah, 14(1), 179-194.

Buana, M. S., & Budiman, R. (2022). Indonesia’s minimum wage policy after the Omnibus Law: A comparative analysis from Islamic principles. UUM Journal of Legal Studies, 13(2), 187-214.

Chandra, T., & Sobirov, B. (2023). Corporate criminal liability for illegal toxic and hazardous waste dumping. Lex Publica 10, (1): 123-140.

Dewi, A. A. S. L., Rahayu, M. I. F., Ujianti, N. M. P., Saripan, H., & Wibisana, A. A. N. A. (2023). The Urgency of Indonesian Omnibus Law Implementation Related to Foreign Investment. Substantive Justice International Journal of Law, 6(2), 83-93.

Dwiono, S., Ja’far, A. K., & Haryadi, S. (2024). An Analysis on the Omnibus Law and Its Challenges in Indonesia: The Perspectives of the Constitutional and the Islamic Law. Samarah: Jurnal Hukum Keluarga dan Hukum Islam, 8(2), 706-725.

Fajri, M. N. (2023). Legitimacy of Public Participation in the Establishment of Law in Indonesia: Legitimasi Partisipasi Masyarakat Dalam Pembentukan Undang-Undang Di Indonesia. Jurnal Konstitusi, 20(1), 123-143.

Hadi, S. P., Hamdani, R. S., & Roziqin, A. (2023). A sustainability review on the Indonesian job creation law. Heliyon, 9(2).

Harahap, A. M., Harahap, M. I. M., Efendi, R., Daulay, M. N., & Ahmad, M. H. (2024). Challenges And Problems In Labour Law From The Perspectives Of Indonesia And Malaysia. Malaysian Journal of Syariah and Law, 12(3), 535-549.

Hariyanto, H. (2022). Risk-Based Business License and Problems Arising After The Job Creation ACT. Jurnal IUS Kajian Hukum Dan Keadilan, 10(2), 354-366.

Jazuli, M. R., Idris, M. M., & Yaguma, P. (2022). The importance of institutional quality: Reviewing the relevance of Indonesia’s Omnibus Law on national competitiveness. Humanities and Social Sciences Communications, 9(1), 1-13.

Kususiyanah, A., Huda, M. C., Sriwidodo, J., & Baharuddin, A. S. (2024). Trends and landscape of Omnibus Law research: A bibliometric analysis. Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi, 219-243.

Mahardika, A. G. (2021). Omnibus Law Implication Towards Constitutional Rights of Healthy Environment | Implikasi Omnibus Law Terhadap Hak Konstitusional Atas Lingkungan Hidup yang Sehat. Jurnal Konstitusi 18, (1): 195–218.

Mahy, P. (2022). Indonesia's Omnibus Law on job creation: legal hierarchy and responses to judicial review in the labour cluster of amendments. Asian Journal of Comparative Law, 17(1), 51-75.

Mochtar, Z. A., & Rishan, I. (2022). Autocratic legalism: the making of Indonesian omnibus law. Yustisia, 11(1), 29-41.

Mochtar, Z. A., Arizona, Y., Rahman, F., Mubdi, U., Ruhpinesthi, G. E., & Wafi, M. A. (2024). From Meaningful to Meaningless Participation: The Tragedy of Indonesia’s Omnibus Law on Job Creation. Jurnal Media Hukum, 31(2), 351-370.

Nurhayati, Y., & Zahir, M. Z. M. (2022). Investment in Indonesia after Constitutional Court's Decision in the Review of Job Creation Law. Lentera Hukum, 9, 435.

Pratama, Y. A., Kadir, M. Y. A., Rivaldi, A., Mulya, I. C., Amirah, S., & Iqhrammullah, M. (2024). Bibliometric analysis of the impact of environmental degradation on women and the importance of women's representation. Global Journal of Environmental Science & Management (GJESM), 10(3).

Purwanto, M. E., & Lubis, E. (2022). Yudicial Review Omnibus Law Dalam Melindungi Pekerja dan Mengembangkan Investasi di Indonesia. Veritas, 8(1), 49-66.

Sanders, A., Khatarina, J., Assegaf, R., Toumbourou, T., Kurniasih, H., & Suwarso, R. (2024). The Omnibus Law on Job Creation and its potential implications for rural youth and future farming in Indonesia. Asia Pacific Viewpoint, 65(2), 248-262.

Sarjana, I. M., Sudiarawan, K. A., Medd, L. A., Raksita, I. P. B. W., & Hermanto, B. (2023). Omnibuslaw Employment Cluster: Is Ita Form Of Labor Exploitation In The Indonesian Context?. UUM Journal of Legal Studies, 14(1), 57-88.

Shalihah, F. (2022). Industrial Relations with Specific Time Work Agreements after the Decision of the Constitutional Court of the Republic of Indonesia Number 91/PUU-XVIII/2020 in The Perspective of Legal Justice. Jurnal Hukum Novelty, 13(1), 65-80.

Siagian, A. H. (2021). Omnibus law in the perspective of constitutionality and legal politics. Jambura Law Review, 3(1), 93-111.

Sisinaru, S. Y., & Harijanti, S. D. (2022). The constitutionality of outsourcing job regulation in the law on job creation. Law Reform, 18(1), 79-88.

Yuzuru, S. (2024). Legal Changes during Joko Widodo’s Administration–Backsliding of Democracy?. International Quarterly for Asian Studies, 55(2), 269-287.




DOI: http://dx.doi.org/10.30659/ldj.7.1.132-143

Refbacks

  • There are currently no refbacks.


Law Development Journal has been indexed in: