Gayatri Sulaiman and Stefanno Sulaiman

JAKARTA, Reuters – Indonesia’s parliament will revisit a controversial Job Creation law in order to meet a court order. This is amid increased pressure from environmentalists and unions to repeal the legislation.

What is the JOB CREATION LAW

Joko Widodo created the so-called “omnibus bill” as his flagship legislation. It was a revision of over 70 laws with the goal to remove red tape, improve the investment climate, and create jobs in Southeast Asia’s largest economy.

The site has an extensive coverage, including topics such as labor rights, tax rules, permit for mining or plantation and permits for the establishment of Indonesia’s sovereign money fund.

WHAT IS THE PURPOSE OF IT?

Student groups, Labour Organisations and Environmentalists complain that the law is too pro-business. They also claim that it weakens protection for workers.

This law has brought about labor reforms that include a decrease in compulsory severance and new minimum wage levels, as well as the elimination of certain mandatory paid leaves.

Green groups objected to the requirement that investments be considered high-risk for an environmental impact study are required, as opposed to the previous law’s wider requirements.

Critics also accuse the government of moving too quickly through the discussion process, without properly consulting the public.

HOW WAS THE LAW CHALLENGED?

Students and workers protested in mass across the archipelago after the law was passed. Trade unions and civil societies filed a legal review at Constitutional Court.

After hearing the case for about a year, the court declared that the legislative handling was unconstitutional and procedurally flawed.

This court’s ruling is unchallengeable. The court ordered parliament and the government to amend the law within 2 years, or else the legislation would be declared “permanently inconstitutional.”

WHAT HAS HAPPENED IN THE ENTIRE TIME ABOVE?

The law that regulates the process of legislation being passed was revised by lawmakers last month. This revision clarifies what constitutes public consultations, and provides a legal foundation for an “omnibus” style bill that allows multiple laws to be amended.

This revision was generally viewed as designed to assist the government in complying with the court decision. However, critics including the green group and unions saw it as an intent to accelerate the debate.

According to Reuters, a union official said that workers are planning to demonstrate at parliament on June 15, and to demand the return of labour laws to 2003.

Asep Komarudin from Greenpeace said he would like lawmakers to repeal sections of the law that can be harmful to the environment.

The government may consider making more substantial changes to the law to reflect the importance it holds for foreign investors. An official from the legal profession told Reuters that the government will continue to debate the content of the law.