Risk-based approach in job creation bill lacks rigor

Mohamad Mova Al'Afghani
Director of the Center for Regulation, Policy and Governance

PREMIUM

Jakarta / Tue, March 3, 2020 / 10:43 am

Risk-based approach in job creation bill lacks rigor

Workers from the Confederation of Indonesian Trade Unions (KSPI) stage a protest against the controversial omnibus bill on job creation in front of the House of Representatives in Jakarta on Feb. 12, 2020. (JP/Dhoni Setiawan)

Despite the criticisms laid against the job creation bill, we need to commend the government for its courageous effort, not only to consolidate and harmonize around 70 laws, but also to introduce an overarching risk-based approach to our legal system. Most critics focus on two primary issues: (1) sectoral issues, arguments of which usually revolve around the “loss of protection”, be it for the environment, labor or certain aspects of human rights; and (2) procedural issues, with many criticizing the “omnibus” legislative process as lacking transparency. However, few have paid enough attention to the risk-based approach used in the bill, even though this mechanism will fundamentally alter our regulatory system and may even raise question on whether it would be compatible with our Constitution. Risk-based regulations require the government to prioritize reg...