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Jakarta Post

Omnibus bill on job creation divides unions, faces criticism

  • Ghina Ghaliya and Adrian Wail Akhlas

    The Jakarta Post

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Jakarta   /   Fri, February 14, 2020   /  07:18 am
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Labor unions march toward the House of Representatives Building in protest of the omnibus bill on job creation in Jakarta on Jan. 13, 2020.(JP/Moch. Fiqih Prawira)

The government is set to reform the country’s labor regulations through a sweeping omnibus bill on job creation, in the face of workers’ objections and criticism from economists and businesspeople over several of the proposed bill’s provisions. According to a draft obtained by The Jakarta Post on Wednesday, the government-initiated bill will ease foreign-worker recruitment, cap redundancy payments for laid-off workers and provide a bonus, described by some as a “sweetener”, for employees. The government will also relax outsourcing requirements and open the possibility for outsourcing agencies to hire workers for various jobs, which can be for freelance or full-time work. It also introduces a new regional minimum wage that takes into account a region’s economic growth and allows labor-intensive industries to have a separate minimum-wage calcula...