Indonesian government together with the House of Representatives have agreed on the omnibus law for the Job Creation - Photo by CMEA Office

JAKARTA (TheInsiderStories) – Indonesian government together with the House of Representatives have agreed on the omnibus law for the Job Creation. Senior economic minister, Airlangga Hartarto, believes that the bill will be of great use to encourage national economic recovery and bring Indonesia into a new era of global economy.

“The job creation bill will encourage regulatory reform and debureaucratization, so that Government services will be more efficient, easy, and certain, with the application of Norms, Standards, Procedures and Criteria and the use of electronic systems”, he said in the plenno meeting on Monday (10/05).

The omnibus law, said Hartarto, is aimed at solving various problems that hinder the investment and opening up employment opportunities, through simplification of the bureaucracy and licensing systems. The bill, he assured will guarantees certainty in the provision of severance pay, in which the Government applies the Job Loss Guarantee Program without reducing the benefits of Work Accident Security, Death Security, Old Age Security, Pension Security, and do not add the burden of contributions from workers or employers.

Earlier, the President of the Confederation of Indonesian Workers Unions, Said Iqbal stated that workers rejected seven articles in the bill. First, he explained, in the existing law, the full requirement minimum wage arrange by the district or city based on the rate of inflation or economic growth and now have been deleted in the bill.

Second, workers also refuse to reduce the value of severance pay from 32 times of their wages to 25 times their wages in the new law. In it, 19 months are paid by employers and six months are paid by BPJS Ketenagakerjaan. He questioned where the the agency got the source of funds.

Third, workers also reject the fixed term work agreement scheme, which the deadline is canceled and will allows workers to be contracted for life without becoming permanent employees. Fourth, for an outsourcing contract is said to be for life. Outsourcing is also applied regardless of the type of work.

Fifth, the Job Creation Bill regulates compensation for workers to be given when the work period has reached a minimum of one year, while the work contract has no time limit. Iqbal worried that workers who are contracted for less than one year will not receive work compensation.

Sixth, workers also reject the working time agreed in the Job Creation Bill, because it is considered exploitative and tends to be excessive. The working time in the law is regulated more flexibly for part-time work to a maximum of eight hours per day or 40 hours per week. And, for special jobs such as in the oil and gas, mining, plantation, agriculture and fisheries sectors it can exceed eight hours per day.

Seventh, said Iqbal, the right to leave maternity and menstruation was not eliminated, which is a problem, as long as the leave is not paid workers. Earlier, dozens of the confederation and trade Unions have agreed to hold a national strikes as a form to rejection on the omnibus law on the Job Creation Bill.

Iqbal said, the national strike will be carried out constitutionally in an orderly and peaceful manner. He stated, the national strikes will be followed by approximately five million workers in thousands of companies in 25 provinces and 300 districts and cities.

This strike was carried out as a form of protest by Indonesian workers against the deliberation of the Job Creation Bill which was considered more beneficial to employers.

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