10 Points of the Omnibus Law
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Editor
6 October 2020 16:49 WIB
TEMPO.CO, Jakarta - The House of Representative ("DPR") has finally enacted the Omnibus Law Draft Bill into a Law. Chairman of the DPR's Legislative Body Supratman Andi Agtas informed that the new Law includes 15 chapters and 185 articles.
"This means there are changes from the initial 15 chapters and 174 articles," Supratman said in a plenary session on the enacted of the new Law on Monday, October 5, 2020.
Supratman stated that there are at least 10 important points in the new Omnibus Law, which are as follows:
1. Ease of Licensing
A number of licensing process through the Online Single Submission (OSS) will be simplified. Simplification will be applied to the registration of intellectual property rights, company establishment, and legal certainty for micro, small, and medium enterprises.
2. Halal Certification
Acceleration in the process of halal certification will be conducted for micro and small enterprises. Certification fees will be borne by the government and the institutions authorized to conduct halal certification examination will be expanded to include Islamic organizations and public universities.
3. Ship Licensing
Through the Omnibus Law, licensing for fishing ship businesses will be conducted through a single window at the Ministry fo Marine and Fisheries. The Ministry of Transportation will only provide safety standardization support.
4. Low-Income Population Housing
The construction of housing for the low-income populations will be accelerated. The program will be managed specifically by the Housing Implementation Acceleration Agency (Badan Percepatan Penyelenggaraan Perumahan - BP3).
5. Agrarian Reform
Agrarian reform will be accelerated through the redistribution of land through a Land Bank. Supratman said that local government authorities will be maintained in accordance with regional autonomy principles.
However, Supratman said that the central government will determine norms, standards, procedures, and terms "to provide equal service standards in all regions."
6. Job Termination Security
In the Omnibus Law, it is said that the government will issue a new program named the Job Termination Security (Jaminan Kehilangan Pekerjaan - JKP), or in other countries known as the Unemployment Insurance program. The JKP program is an attempt from the government to provide a contribution in relation to severance payment.
The Omnibus Law indeed lowered the amount of severance payment from equal to 32 times of regular salary to equal to 25 times of regular salary. In detail, the amount of severance payment equals 19 times of regular salary will be borne by businesses, while the remaining amount will be borne by the government through the JKP program, which will be disbursed by the Manpower Social Security Administration Agency. "The premium will be included in the State Budget," Supratman said.
However, Supratman asserted that requirements for a layoff will remain pursuant to the Manpower Law (Law No. 13 of 2003). In addition, the Omnibus Law did not remove any rights to maternity leave.
7. Institutional Strengthening
In addition to the simplification of licensing, there will also be facilities for businesses. Supratman reported that there will be institutional strengthening for micro, small, and medium enterprises and cooperatives through the ease of business and other facilities.
8. One Map
Supratman added that there will also be a one map policy that will be implemented in Spatial Planning. The policy will integrate land areas, shorelines, small islands, sea territories, and forest areas. "So there will be legal certainty for businesses," Supratman said.
9. Foreign Workers
Every employer of foreign workers will be required to have plans for the utilization of foreign workers that must be approved by the central government. Meanwhile, individual employers are restricted from employing foreign workers. In addition, foreign workers are not allowed to occupy position relation to human resources in a company.
10. Economic Zones
Finally, the Omnibus Law provides ease of investments for the central government and for the National Strategic Projects in economic zones. Also, there will be ease of bureaucracy for the purpose of Job Creation.
FAJAR PEBRIANTO