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Omnibus bill allows President to scrap bylaws, weakens regional administrations
The bill will also streamline the licensing process in almost all strategic business sectors under the government.
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President Joko Widodo gives a speech at the cabinet plenary session at Bogor Palace, on Feb. 11, 2020. ( Setneg/Handout)
A
n omnibus bill on job creation will grant the President the authority to revoke regional bylaws that contradict the central government’s regulations, effectively weakening the influence of local administrations but resolving business people’s complaints about conflicting rules.
The bill will also streamline the licensing process in almost all strategic business sectors, namely mining, energy, agriculture, aviation and construction, under the government.
According to a draft of the bill obtained by The Jakarta Post, provincial and regency/city bylaws as well as gubernatorial and regental/mayoral regulations that contradict the government’s regulations will be revoked by presidential regulations.
The existing Regional Administration Law stipulates that the authority to revoke bylaws lies with the home minister.
The bill, submitted to the House of Representatives for deliberations on Wednesday, has also removed a provision in the prevailing law that enables regional administrations to appeal such revocations.
Read also: Omnibus bill on job creation divides unions, faces criticism
“This will harmonize government regulations and regional bylaws to ease the investment process,” Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman Raden Pardede told the Post over the phone on Friday. “We are hoping that regional administrations will support the policy to attract and expedite investments.”
