Omnibus Law on Job Creation

Quick Facts: Who was Omnibus Law on Job Creation?

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Omnibus Law on Job Creation

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Indonesian omnibus law aiming to boost investment by streamlining regulations.

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2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

The Job Creation Act (Indonesian: Undang-Undang Cipta Kerja), officially Act Number 11/2020 on Job Creation (Undang-Undang Nomor 11 Tahun 2020 Tentang Cipta Kerja, or UU 11/2020), is a bill that was passed on 5 October 2020 by Indonesia's House of Representatives, 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 omnibus bill. 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. The law has been criticized on the basis of concerns it will harm labour rights and indigenous land rights, and increase deforestation in Indonesia by reducing environmental protections.

Career & Major Achievements

A series of protests are ongoing as of October 2020, demanding the law be revoked. On 25 November 2021, the Constitutional Court 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. If the law isn't rectified in two years, it will be declared void and any amendments made to it will be undone.

Enduring Legacy & Impact

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 Joko Widodo later signed the formulating law on 16 June 2022, effectively starting the process of revising the legislation. On 30 December 2022, the amendment of the law, Government Regulation in Lieu of Law No.2/2022, was signed by Widodo. On 21 March 2023, the amended law, presented as the 2023 Omnibus Law on Job Creation, was passed. On 31 March 2023, as the new law commenced, the 2020 Omnibus Law was repealed.

Chronological Milestones & Life Events

1. 2020: 2020 Milestone — The Job Creation Act (Indonesian: Undang-Undang Cipta Kerja), officially Act Number 11/2020 on Job Creation (Undang-Undang Nomor 11 Tahun 2020 Tentang Cipta Kerja, or UU 11/2020), is a bill that was passed on 5 October 2020 by Indonesia's House of Representatives, with the aim of creating jobs and raising foreign and domestic investment by reducing regulatory requirements for business permits and land acquisition processes.
2. 2021: 2021 Milestone — On 25 November 2021, the Constitutional Court issued its decision, calling the law "conditionally unconstitutional".
3. 2022: 2022 Milestone — 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.
4. 2023: 2023 Milestone — On 21 March 2023, the amended law, presented as the 2023 Omnibus Law on Job Creation, was passed.

Historical Fact-Check Quiz: Omnibus Law on Job Creation

True or False: “The initial passage of the Job Creation Act in 2020 was universally supported by all political factions within the Indonesian House of Representatives.”

Answer (FALSE ❌): The bill was rejected by two parties—Demokrat and PKS—and while seven parties supported it, not all factions were aligned.

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Frequently Asked Questions about Omnibus Law on Job Creation