Conference PaperPDF Available

Omnibus Law in Indonesia: Is That the Right Strategy?

  • January 2020
DOI:10.2991/aebmr.k.200513.038
  • Conference: International Conference on Law, Economics and Health (ICLEH 2020)
Authors:
Ricca Anggraeni
Ricca Anggraeni
Ricca Anggraeni
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Cipta Indra Lestari Rachman
Cipta Indra Lestari Rachman
Cipta Indra Lestari Rachman
  • This person is not on ResearchGate, or hasn't claimed this research yet.
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Omnibus Law in Indonesia: Is That the Right
Strategy?
Ricca Anggraeni1, Cipta Indra Lestari Rachman2
1, 2Pancasila University, Jakarta- Republic of Indonesia
E-mail: cha2khan@yahoo.com1; cipta.rachman@yahoo.com 2
ABSTRACT--The plan to form a law with the concept of the
Omnibus Law continues to roll and color the public policy that
will be taken by the Government of Indonesia. The Draft Law
with the concept of the Omnibus Law continues to be finalized
with the pros and cons in the process of its formation.
Whatever it is, the concept of Omnibus Law is offered as a
solution to the regulatory problems in Indonesia which are
already too hyper and disharmony. As a solution, Omnibus
Law in the level of public policy is a strategy. Strategy
launched by the Government to deal with obstacles and
challenges. The question is why the concept of the Omnibus
Law was chosen as a strategy by the Government to deal with
regulatory obstacles? Is Omnibus Law can be the right strategy
to overcome regulatory problems in Indonesia. This problem is
solved by using a type of qualitative research using a socio-
legal approach based on secondary data and supplemented
with primary data obtained through interviews.
Keyword: Omnibus Law, laws, regulation
I. INTRODUCTION
The term Omnibus law has resounded in
Indonesia since the President of the Republic of
Indonesia, Joko Widodo delivered his first speech in his
inauguration on October 20, 201.[1] The idea of the
omnibus law became a discussion among the law-forming
institutions other than the Government, namely the
People's Representative Council of the Republic of
Indonesia and the Regional Representative Council of the
Republic of Indonesia. In the National Legislation
Program 2020-2024, the proposed draft bill with the
concept of omnibus law is 3 (three) out of 248 draft laws,
namely the Draft Bill on Employment Creation; Draft Bill
on Development and Strengthening of the Financial
Sector; and the Draft Bill on Tax Provisions and Facilities
for Economic Engagement.
Omnibus comes from the Latin word omnis
which means "all". if related to the concept of law in the
Black Law Dictionary, the omnibus means numerous
objects or items at once; many things or having various
purposes. Likewise in Gluck and Connel, the omnibus
law: packages together several measures into one or
combines diverse subjects into a single law.The various
meanings of the omnibus can be understood as a statutory
regulation that is made to target a major issue that can
revoke or change several lawsat once to be simple. As
what has been released, and is known through research
and websites, the number of laws and regulations in
Indonesia have reached the stage of hyper regulation or
obesity. For example, on the website peraturan.go.id, for
example, it is known that there are already 1687 laws, 180
Government Regulations in lieu of laws, 4558
Government Regulations, 2008 Presidential Regulations,
Ministerial Regulations 14722, Regulations of Non-
Ministerial Government Institutions 3758, Regional
Regulations 15965.[2]
In the condition of Indonesian regulation, the
concept of omnibus law is a concern and offers a strategy
to simplify regulation in Indonesia. However, the question
that raises is why the concept of the Omnibus Law was
chosen as a strategy by the Government to deal with
regulatory obstacles? and Whether the Omnibus Law can
be the right strategy to overcome regulatory problems in
Indonesia.
II. RESEARCH METHOD
The method used in this research is qualitative. The
approach used is normative to question the omnibus law
strategy as a problem solver for overlapping regulations in
Indonesia.[3] This study relies heavily on secondary data.
The data obtained is then collected to be validated and
described in the research report.
III. FINDING & DISCUSSION
A. Omnibus As Astrategyto Simplify The Regulation
The problem of hyper regulation in Indonesia has
been raised by various studies including its impact on
regulatory overlaps. The Center for Law and Policy
Studies, for example notes that from October 2014 to
2018, there were around 7,621 ministerial regulations.
While the number of presidential regulations produced
during the last four years is only 765 and government
regulations amounting to 452. [4]. From this amount it
can be stated that indeed the number of laws and
regulations in Indonesia is too much. With this amount,
according to the Regulatory Quality Index issued by the
World Bank, Indonesia's position during 1966-2017 has
always been ranked 92 out of 193 countries.[5]
Hyper and obese regulatory conditions cause
Indonesia to deal with overlapping legal issues.
Inconsistency and disharmony caused by hyper regulation
become one of the main factors inhibiting Indonesia's
competitiveness. Whereas the competitiveness of a nation
determines the ability of a country to attract investors to
their country.[6] The condition of Indonesia's
Advances in Economics, Business and Management Research, volume 140
International Conference on Law, Economics and Health (ICLEH 2020)
Copyright © 2020 The Authors. Published by Atlantis Press SARL.
This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 180
competitiveness is affected by indications of the lack of
ease of doing business in Indonesia, so that investors are
less interested in investing in Indonesia. This is because,
according to the World Bank, Indonesia has multi-layered
procedures, at least 10 stages with an estimated 19.6 days.
This ranks Indonesia 73rd out of 190 countries with ease
of business and ranks 50th as a competitive country, or
dropped to fifth in 2018. [7]
Etymologically, strategy is a step to overcome
obstacles, accept challenges. [8]One obstacle experienced
by Indonesia is that the bureaucratic process of so many
regulations hinders investment and competitiveness. The
challenge, development in the era of digital society and
the era of distrust requires the country to be prepared to
face the quality of human resources, productivity,
innovation and competitiveness readiness. In addition,
challenges that Indonesia will face in demographic bonus
in 2045. Other challenges faced include infrastructure
development accompanied by structural reforms and
strengthening human resource competencies.If described,
the challenges that will be faced by Indonesia, namely the
development of the internet and the use of digital
technology in Indonesia, the number of productive age
population reaches up to 68% or equivalent to 200 million
people in 2030, and economic inequality which is
reflected by poverty in eastern Indonesia 18.01 percent ,
10.3 percent in the west, and urban 7.02 percent.
Meanwhile, income inequality in rural areas is 0.324 and
urban areas are 0.4.[9]
The omnibus was chosen as a strategy to overcome
the challenges and obstacles of regulation in Indonesia,
because it is believed to have several advantages over the
application of the omnibus law concept used by several
countries, among others:[10]
1.Addressing both vertical and horizontal public
policy conflicts effectively and efficiently;
2.Harmonizing government policies, both at the
central and regional levels;
3.Simplifying the licensing process more
integrated and effective;
4.Breaking the convoluted bureaucratic chains;
5.Improving the coordination between related
agencies because it is regulated in an
integrated policy;
6.Providing guarantees of legal certainty and legal
protection for policy makers
B. Omnibus In Indonesia’s Regulation Systems
With all the advantages carried by the omnibus law to
overcome obstacles and face challenges by Indonesia in
terms of regulation, what is often debated by academics is
the matter of the suitability of the statutory system of
legislation in Indonesia.
Omnibus law is believed to be something that can
solve regulatory problems, namely hyper and
overlapping.Harmonization is no longer considered a
capable strategy to solve the problem. Omnibus law
breakthrough.
Omnibus is indeed counted as a strategy carried out
by several countries, such as the United States, Belgium
and the United Kingdom, although to implement it, the
costs required are not small and the time required is not
short. However, the Omnibus is considered capable,
because it is related to or dealing with various objects at
once, including many things or having various goals.[11]
The Omnibus Law practice that is often referred to is
the system used by the Serbian state. adopting Omnibus
Law is Serbia. Serbia, adopted the Omnibus Law in 2002
which regulates the autonomous status of the Vojvodina
Province which is included in Serbia. The law covers the
jurisdiction of the Vojvodina provincial government
regarding culture, education, language, media, health,
sanitation, health insurance, pensions, social protection,
tourism, mining, agriculture, and sports.[12]
Indonesia in the National Legislation Program this
year, and in the long term 2020-2024 plans to form an
Omnibus Law Bill, but various discussions show that
omnibus law is not suitable to be applied in Indonesia
because it is considered undemocratic. Meanwhile,
according to Maria Farida Indrati, omnibus law is
commonly used in countries that adopt a common law
system."[13] In addition to the common law, the omnibus
law is also a law produced by the parliamentary system,
so that the one who has the power to form a law is
parliament, the President only vetos a law that he does not
approve. With a parliamentary system, laws are only
made by Parliament without involving the public, so the
omnibus law is called anti-democracy.
In addition, the omnibus law bill planned for this
year's National Legislation Program has absolutely no
effect on the number of bills proposed by the House of
Representatives, the Government and the Regional
Representative Council. Moreover, the Regional
Representative Council, the Government and the Regional
Representative Council do not have the same concept of
the omnibus law, so the Government has its own omnibus
law bill, the House of Representatives and the Regional
Representative Council also seek their own concept of the
omnibus law. Coupled with normative conditions based
on Article 20 of the 1945 Constitution of the Republic of
Indonesia which stipulates that the formation of Laws in
Indonesia is under the authority of the House of
Representatives, with the joint agreement of the President.
There is an executive role in the formation of laws in
Indonesia, so it is rather difficult if the concept of the
omnibus law bill only comes from one party forming the
law.
Referring to the regulatory system in Indonesia, the
Omnibus law will have its own challenges. For example,
about the type and hierarchy of laws and regulations in
Indonesia, which are familiar with implementing
regulations and implementing technical regulations. The
omnibus law will have implementing regulations and
technical regulations, which means that it will not
significantly reduce the number of laws and regulations in
Indonesia. Not to mention, this omnibus law bill will also
be implemented in the regions. This condition shows that
Advances in Economics, Business and Management Research, volume 140
181
omnibus law as a strategy must be re-strategized in the
statutory system in Indonesia.
.
IV. CONCLUSION
The omnibus was chosen as a strategy to overcome
the challenges and obstacles of regulation in Indonesia,
because it is believed to have several advantages in
applying the concept of the omnibus law used by several
countries, while addressing both vertical and horizontal
public policy conflicts effectively and efficiently,
harmonizing government policies, both at the central level
and in the regions, and guarantee legal certainty and legal
protection for policy makers. The Omnibus law has not
been able to become a strategy to parse regulatory
problems in Indonesia, because the statutory regulatory
system in Indonesia requires implementing regulations
and implementing technical regulations of a law. not to
mention the system of law formation in Indonesia which
is not in parliamentary, but on legislative powers that
require joint approval from the executive.
REFERENCES
[1]Luthfia Ayu Azanella, "Apa Itu Omnibus Law, yang
Disinggung Jokowi dalam Pidatonya?", online,
https://www.kompas.com/tren/read/2019/10/22/07060066
5/apa-itu-omnibus-law-yang-disinggung-jokowi-dalam-
pidatonya-?page=all.
[2]www.peraturan.go.id,3 Januari 2019.
[3] Reza Banakar and Max Travers, 2005, "Theory and
Method in Socio-Legal Research, Hart Publishing Oxford
and Portland Oregon, p. xi.
[4] Aida Mardhatillah, 2019, "Alasan PSHK UU
Pembentukan Peraturan Perlu Dirombak Total,
https://pshk.or.id/rr/alasan-pshk-uu-pembentukan-
peraturan-perlu-direvisi-total/.
[5] World Wide Governance Indicators,
https://govdata360.worldbank.org/indicators/hf8a87a
ec?country=IDN&indicator=394&viz=line_chart&ye
ars=1996,2018.
[6] Riswandha Imawan, "Peningkatan Daya Saing:
Pendekatan Paragdimatik: Politik, Jurnal Ilmu Sosial
dan Politik, Vol.6, No. 1, 2002, hal. 84.
[7]NN., Omnibus Law: Solusi dan Terobosan Hukum,
2019, https://www.indonesia.go.id/narasi/indonesia-
dalam-angka/ekonomi/omnibus-law-solusi-dan-
terobosan-hukum
[8] SW Arti, "Pengertian Strategi",
http://eprints.walisongo.ac.id/7292/3/BAB%20II.pdf,
diakses pada tanggal 5 January 2020.
[9] Wantimpres, "Warta", http://wantimpres.go.id/wp-
content/uploads/2018/04/WARTA-
WANTIMPRES_FA_EDISI-
1_FINAL_CETAK_090418-.pdf.
[10] Nn, "RUU Omnibus Law: Omnibus Law: Solusi dan
Terobosan Hukum, diakses melalui
https://indonesia.go.id/narasi/indonesia-dalam-
angka/ekonomi/omnibus-law-solusi-dan-terobosan-
hukum.
[11] Firman Freddy Busroh, "Konseptualisasi Omnibus
Law Dalam Menyelesaikan Permasalahan Regulasi
Pertanahan," Jurnal Arena Hukum, Vol 10, Nomor 2,
Agustus 2017, hal. 242.
[12] Ibid., hal. 241.
[13] Rofiq Hidayat, "Kekhawatiran Maria Farida Terkait
Omnibus Law",
https://www.hukumonline.com/berita/baca/lt5de4f9c9
216d0/kekhawatiran-maria-farida-terkait-omnibus-
law/.
Advances in Economics, Business and Management Research, volume 140
182
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  • Jun 2017
One of the factorsthat hampers theimprovement of the investment climatein Indonesia is due to regulatory issues. Regulatory issues related to several industries including the land sector. Based on data from the Ministry of Agricultural and Spatial Planning / National Land Agency of Republic of Indonesia there are about 632 regulations related to land whereas 208 are no longer valid leaving only 424 regulations applicable. Regulation of some 424 hadimplementationproblems and conflicts between agencies.The primary key of law enforcement begins with the quality of theregulation. Due to regulation which has many shortcomings that need to be addressed to improve the investment climate in Indonesia. To overcpme these problems the Minister of Agrarian and Spatial Planning / National Land Agency of the Republic of Indonesia, Mr. Sofyan Jalil threw the idea of omnibus law to resolve regulations problems that influence the growth of investment in Indonesia. Sofyan jalil said that the government is discussing the legislation remedial solutions through the Omnibus Law. Omnibus Law's existence has been known in legal theories from common law countries. However, the existence of omnibus law is still lessknownamong the academic community of the faculty of law in Indonesia. For that purpose than this article to understand the omnibus law and its use to resolve the regulatory issues in Indonesia. Abstrak Salah satu faktor yang menghambat peningkatan iklim investasi di Indonesia disebabkan karena permasalahan regulasi. Permasalahan regulasi terkait dengan beberapa bidang industri diantaranya adalah bidang pertanahan. Berdasarkan data yang dirilis dari Kementerian Agraria dan Tata Ruang/Badan Pertanahan Nasional Republik Indonesia ada sekitar 632 regulasi yang terkait bidang pertanahan dimana 208 peraturan sudah tidak berlaku lagi sehingga yang berlaku 424 regulasi. Regulasi sebanyak 424 beberapa memiliki permasalahan penerapannya dan benturan antar instansi. Padahal kunci utama penegak hukum dimulai dari kualitas mutu regulasi yang berlaku. Akibat regulasi yang memiliki banyak kekurangan maka perlu untuk dibenahi karena menjadi faktor penghambat peningkatan iklim investasi di Indonesia. Untuk mengatasi permasalahan tersebut maka Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional Republik Indonesia Bapak Sofyan Jalil melontarkan gagasan konsep Omnibus Lawuntuk menyelesaikan pemasalahan regulasi yang menghambat pertumbuhan investasi di Indonesia. Sofyan jalil mengatakan bahwa pemerintah tengah menggodok solusi perbaikan undang-undang melalui Omnibus Law. Keberadaan Omnibus Law sudah dikenal dalam teori-teori hukum. Teori Omnibus Law berasal dari negara yang menganut sistem hukum common law. Akan tetapi keberadaan Omnibus Lawmasih kurang diketahui dikalangan civitas akademika fakultas hukum di Indonesia. Untuk itu tujuan daripada tulisan ini untuk memahami Omnibus Lawdan penggunaannya untuk membenahi permasalahan regulasi di Indonesia.
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Peningkatan Daya Saing: Pendekatan Paradigmatik-Politis
Article
Full-text available
  • Jul 2002
As liberal-based political-economic order increasingly globalised, each country have to geard in improving its competitiveness. Each country attempt to optimise its comparative advantage in order to survive in such an order. Judging from political perspective, the author argues that capability to perform competitively at the global and international arena, Indonesia has to institutionalise domestic political economis system, both at national and local level. The political format suggested for that purpose is resemble to what Deborah Stone calls: the polls model. It is true the globalised world order tend to marginalised the role of the government, yet, the government of Indonesia responsible to set up a sound policy for improving national and local competitiveness. Nonetheless the state role is to empower, rather than to dominate, let alone dependency creating. The challenges and strategy to meet them is offered at the end of this article.
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Theory and Method in Socio-Legal Research
Article
Full-text available
  • Nov 2005
Socio-legal researchers increasingly recognise the need to employ a wide variety of methods in studying law and legal phenomena, and the need to be informed by an understanding of debates about theory and method in mainstream social science. The papers in this volume illustrate how a range of topics, including EU law, ombudsman, judges, lawyers, Shariah Councils and the quality assurance industry can be researched from a socio-legal perspective. The objective of the collection is to show how different methods can be used in researching law and legal phenomena, how methodological issues and debates in sociology are relevant to the study of law, and the importance of the debate between "structural" and "action" traditions in researching law. It also approaches the methodological problem of how the sociology of law can address the content of legal practice from a variety of perspectives and discusses the relationship between pure and applied research. The editors provide a critical introduction to each of the six sections, and a general introduction on law, sociology and method. The collection will provide an invaluable resource for socio-legal researchers, law school researchers and postgraduates.
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  • Jan 2020
  • Sw Arti
SW Arti, "Pengertian Strategi", http://eprints.walisongo.ac.id/7292/3/BAB%20II.pdf, diakses pada tanggal 5 January 2020.
Kekhawatiran Maria Farida Terkait Omnibus Law
  • Rofiq Hidayat
Rofiq Hidayat, "Kekhawatiran Maria Farida Terkait Omnibus Law", https://www.hukumonline.com/berita/baca/lt5de4f9c9 216d0/kekhawatiran-maria-farida-terkait-omnibuslaw/.