In Indonesia, students and workers went on a massive strike protesting the new “job creation” omnibus bill that will weaken environmental protections and workers’ rights to favour investment. The bill was pushed through parliament with unprecedented speed and has been characterised as a “ruinous false choice”. Police forces since launched “cyber patrols” and fired tear gas and water canons at protestors.
Indonesian president, Joko Widodo claims that the Omnibus Bill, which is central to Widodo’s economy reforms, will promote investment and boost jobs. It was first introduced in October following re-election, with the promise of revising laws that obstruct job creation.
During his second term, the government and media put forth narratives which gave importance to economic growth and FDI to lend legitimacy to the Widodo government. As Trissiaoei writes:
What is the Omnibus Bill and why are people protesting it?
Mogok Nasional Buruh-buruh Serang. PT PWI 1. pic.twitter.com/VCZwGlJ6yw
— twitpos™ (@twitpos) October 6, 2020
4. “Job Creating” Omnibus Bill
There are at least three sets of Omnibus Bills that are/will be introduced this year:Job Creation, Taxation, and New Capital City. All three aim to increase liberalisation by making markets more flexible to foreign investment. Of these, workers are currently protesting the Job Creation Bill, though the controversial taxation bill was also introduced yesterday.
The bill will revoke around 26 articles on buildings including those of building permits and licenses, building ownership status, licenses for land rights, safety, structural requirements, protection against fire and lightning strikes along with requirements for health, air lighting, sanitation, building materials, etc.
The bill will simplify the business license procedure across all business sectors including agriculture, security, military and defence, trade, energy, telecommunications, among others. Regulations for foreign investors will also be removed, and instead certain businesses are prohibited for both domestic and foreign companies.
Labour “reforms” will scrap severance payments, payments for recognition of length of service and compensation for rights. Article 93 that stipulates workers’ rights for paid leave of Foreign workers will also be allowed to work in Indonesia without a permit in upper level and management positions. Outsourcing requirements will be significantly relaxed, and institutions can even outsource full-time work. The industries will not have to adhere to regional minimum wages, and Article 93, which stipulates worker’s rights for paid leave under certain circumstances will be scrapped.
There will also be a stronger central government, and regional governments will be weakened.
Celebrities and influencers are promoting the same, but thousands of students, workers, academics and activists have deeply critiqued the bill as well as the way it was passed.
