Deregulation in Job Creation Law: The Future of Indonesian Labor Law
Abstract
A new era in Indonesian labor policy has begun with the recent passage of Law Number 11 of 2020 on Job Creation. The Law modifies dozens of legislations to make business performance easier and strengthen the national investment climate. In doing so, the Law deregulated some key Indonesian labor law policies, reducing previous labor rights formerly governed by Law Number 13 of 2003 on Manpower. The Job Creation Law also seems to increase labor market flexibility. It makes businesses simpler by the provision to hire workers through an outsourcing system or legalizing longer fixed-term contracts, which will make the labor market more precarious for workers in the long run. The study aims to analyze whether deregulation is a way forward for Indonesian labor law and what impact it might bring on workers. The study found solid evidence that the Indonesian government is currently underway on its mission to deregulate labor regulations. This may impact badly on workers, as many labor protections previously mandated by law are reduced. Therefore, workers must strengthen their bargaining position through collective bargaining and reinforcing the trade union to survive in the post-Job Creation Law era.
Keywords
Full Text:
PDFReferences
Books
Biagi, Marco. “A Love-Hate Relationship: Regulating Non-Standard Work in Italy.” in The Role of Private Agencies. Leuven: Adapt University Press, 1998.
Caraway, Teri and Michele Ford. Labor, and Politics in Indonesia. Cambridge: Cambridge University Press, 2020.
Ford, Michele and George Martin Sirait (eds). “Workers’ Participation in Indonesia.” in S. Berger, et.al. The Palgrave Handbook of Workers’ Participation at Plant Level. New York: Palgrave McMillan, 2019.
G., Tremonti, et.al. Nazioni Senza Ricchezza: Ricchezza Senza Nazione. Bologna: il Mulino, 1985.
Herawati, Rina, Ratih Dewayanti, and Wulani Sriyuliani. Penelitian Praktek Kerja Outsourcing Pada Sub-Sektor Perbankan: Studi Kasus Jakarta, Surabaya dan Medan. Jakarta: AKATIGA – OPSI – FES, 2011.
International Labour Organization. Demystifying the Core Conventions of the ILO through Social Dialogue: The Indonesian Experience. Jakarta: ILO, 1999.
Mahy, Petra, et.al. The Plural Regulation of Work: A Pilot Study of Restaurant Workers in Yogyakarta Indonesia Melbourne: Centre for Employment and Labour Relations Law. Melbourne: University of Melbourne, 2017.
Manning, Chris, (eds). “The Political Economy of Reform: Labour After Soeharto” in Edward Aspinall and Greg Fealy, Suharto’s New Order and its Legacy: Essays in Honour of Harold Crouch. Australia: ANU, 2010.
OECD and AIAS. Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts. Paris: OECD Publishing, 2020.
Riyanto, Sigit, et.al. Kertas Kebijakan: Catatan Kritis Terhadap UU Nomor 11 Tahun 2020 tentang Cipta Kerja. Yogyakarta: Faculty of Law Universitas Gadjah Mada, 2020.
Stepan, Alfred. The State and Society: Peru in Comparative Perspective. New Jersey: Princeton Legacy Library, 1978.
Tiraboschi, Michele. “Deregulation and Labour Law in Italy.” in R. Blanpain (ed.). Deregulation and Labour Law: In search of a Labour Concept for the 21st Century (Bulletin of Comparative Labour Relations). Britain: Kluwer Law International, 2000.
Tjandraningsih, Indrasari, Rina Herawati, and Suhadmadi. Praktek Kerja Kontrak dan Outsourcing Buruh di Sektor Industri Metal di Indonesia. Jakarta: AKATIGA–FSPMI–FE, 2011.
Voos, Gurstaaf Heerma Van. “Deregulation and Labour Law in The Netherland.” in R. Blanpain (ed.). Deregulation and Labour Law: In search of a Labour Concept for the 21st Century (Bulletin of Comparative Labour Relations). Britain: Kluwer Law International, 2000.
World Bank. Doing Business in 2019, Creating Jobs. Washigton: BRD/the World Bank, 2020.
Other Documents
Amalia, Apri, et.al. “Analisis Yuridis Perjanjian Kerja Waktu Tertentu Berdasarkan Undang-Undang Ketenagakerjaan dan Hukum Perjanjian.” USU Law Journal 5, no. 1 (2017): 66-76. https://jurnal.usu.ac.id/index.php/law/article/view/15969.
Caraway, Teri L., Michele Ford, and Oanh K. Nguyen. “Politicising the Minimum Wage: Wage Councils, Worker Mobilization and Local Elections in Indonesia.” Politics & Society 47, no. 2 (2019): 1-25. https://doi.org/10.1177%2F0032329219838917.
Da Costa, Agustinus Beo and Stanley Widianto. “Indonesian Unions File Judicial Review to Challenge Job Creation Law.” Reuters, April 20, 2022. https://www.reuters.com/article/us-indonesia-economy-review-idUSKBN27J0D0.
Deakin, Simon, and Frank Wilkinson. “Labour Law, Social Security, and Economic Inequality.” Cambridge Journal of Economics 15, no. 2 (1991): 125-148. https://doi.org/10.1093/oxfordjournals.cje.a035161.
Ford, Michele. “Continuity and Change in Indonesian Labour Relations in the Habibie Interregnum.” Southeast Asian Journal of Social Sciences 28, no. 2 (2020): 59-88. http://www.jstor.org/stable/24492958.
Hadiz, Vedi R. “Gerakan Buruh dalam Sejarah Politik Indonesia.” Majalah Prisma, no. 10 (1994).
___________. “Buruh dalam Penataan Politik Awal Orde Baru.” Majalah Prisma, no. 7 (1996).
Hernawan, Ari. “Kajian terhadap Pengaturan Outsourcing Pasca Putusan Mahkamah Konstitusi Nomor: 27/PUU-1X/2011.” Jurnal Penelitian 1, no. 1 (2012): 11-18. https://repository.ugm.ac.id/36010/1/JURNAL_PENELITIAN_Vol._1%2C_Nov_2012.pdf.
____________. “Hukum dan Kekuasaan dalam Hubungan Industrial.” Mimbar Hukum, Edisi Khusus, (2011): 89-101. https://doi.org/10.22146/jmh.16159.
Hidayah, Nur Putri, et.al. “The Implementation of Labor Development Principles According to Job Creation Law as a Reason to Protect Wages Right.” Bestuur 9, no. 1 (2021): 68-76. https://dx.doi.org/10.20961/bestuur.v9i1.49252.
Izzati, Nabiyla Risfa. “Indonesia Fair Wear Country Study 2021.” Fair Wear, 2022.
_______________. “Improving Outsourcing System in Indonesia: Fixing the Gap of Labour Regulation.” Mimbar Hukum 29, no. 3 (2017): 528-541. https://dx.doi.org/10.22146/jmh.28372.
Mahy, Petra. “Indonesia’s Omnibus Law on Job Creation: Reducing Labour Protections in a Time of COVID-19.” (LEAH Research Group Working Paper Series - Monash University, Number 03, 2021).
Mulyanto, Randy. “Why the Omnibus Law is Not Only an Assault on Workers’ Rights but Also on Indonesia’s SDG Progress”. Equal Times, April 20, 2022. https://www.industriall-union.org/why-the-omnibus-law-is-not-only-an-assault-on-workers-rights-but-also-on-indonesias-sdg-progress.
Muthiariny, Dewi Elvia and Petir Garda Bhwana. “KSPI Warns Jokowi: International Labour Unions Highlight Job Creation Law.” Tempo.co, April 20, 2022. https://en.tempo.co/read/1414647/kspi-warns-jokowi-international-labor-unions-highlight-job-creation-law.
Office of Assistant to Deputy Cabinet Secretary for State Documents and Translation. “Government Issues 49 Job Creation Law Implementing Regulations”. Cabinet Secretariat of The Republic of Indonesia, April 10, 2022. https://setkab.go.id/en/govt-issues-49-job-creation-law-implementing-regulations/.
Perwitasari, Anna Suci. “Indonesian Unions File Judicial Review to Challenge Job Creation Law”. Kontan.co.id, April 20, 2022. https://english.kontan.co.id/news/indonesian-unions-file-judicial-review-to-challenge-job-creation-law.
Pitoyo, Agus Joko, et.al. “The Impacts of COVID-19 Pandemic to Informal Economic Sector in Indonesia: Theoretical and Empirical Comparison.” (paper presented at the 1st Geosciences and Environmental Sciences Symposium, ICST, 2020).
Sparrow, Robert, Teguh Dartanto, and Renate Hartwig. “Indonesia under the New Normal: Challenges and the Way Ahead.” Bulletin of Indonesian Economic Studies 56, no. 3 (2020): 269-299. https://doi.org/10.1080/00074918.2020.1854079.
Statistic Indonesia (BPS). “Work Statistic”. Badan Pusat Statistik, December 2020. https://www.bps.go.id/subject/6/tenaga-kerja.html.
_____________________. “Open Unemployment Rate”. Badan Pusat Statistik, August 2020. https://www.bps.go.id/pressrelease/2020/11/05/1673/agustus-2020--tingkat-pengangguran-terbuka--tpt--sebesar-7-07-persen.html.
Widyatmoko, Wimbanu and Mochamad Fachri. “Indonesia: What to Expect After Constitutional Court Decision on The Omnibus Law”. Baker and McKenzie, April 20, 2022. https://insightplus.bakermckenzie.com/bm/antitrust-competition_1/indonesia-what-to-expect-after-constitutional-court-decision-on-the-omnibus-law.
Legal Documents
The Law Number 13 of 2003 on Manpower [Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan].
The Law Number 11 of 2020 on Job Creation [Undang-Undang Nomor 11 Tahun 2020 Tentang Cipta Kerja].
The Academic Draft on Job Creation [Naskah Akademis Undang-Undang Cipta Kerja].
Dimension Citation Metrics Badge
Refbacks
- There are currently no refbacks.
This journal is indexed on:
View full indexing services.
Recommended Tools: 
PJIH is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License Editorial Board of Padjadjaran Jurnal Ilmu Hukum © 2022
Refbacks
- There are currently no refbacks.
PJIH is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Editorial Board of Padjadjaran Jurnal Ilmu Hukum © 2022