Omnibus Law: Central Government’s Power on Steroids

Superhero power
Summary

  • The Omnibus Bill on job creation cements the central government’s dominance on every regulation in Indonesia. The bill even places the government regulation above the code in the Indonesian hierarchy of laws. As a result, the government may now change or remove any article from it.
  • The substantial focus of the bill is also clear: to grant the investors the maximum access to conduct business in Indonesia, regardless of environmental consequences and employee well-being. The government’s tendency to prioritize investments over anything may lead to unintended, albeit preventable, consequences.
  • The upcoming Omnibus Law on Job Creation will possibly end the regional administration’s independence and authority to issue permits and manage business activities in its territory. The bill even makes it clear that refusing the central government’s order on the matter is a sanctionable offense.

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