Your Omnibus Law Guide
After submission by the House of Representatives to the President on 14 October 2020, the Job Creation Law was finally enacted as Law No. 11 of 2020 on Job Creation (“Omnibus Law”) on 2 November 2020. This law is published in the State Gazette of the Republic of Indonesia of 2020 No. 245 and Supplement to the State Gazette No. 6573.
It is no secret that the road to the Omnibus Law was far from smooth. Aside from the debates surrounding its content, there was also confusion as several versions of the manuscript became available to the public. The final document contains 1,187 pages, divided into 769 pages of the actual amendments and 418 pages of elucidation. Both the government and the House of Representatives admitted that after being approved at the House of Representatives’ Plenary Session on 5 October 2020, changes were still being made to the bill's manuscript, including the elimination of the amendment to Article 46 of the Oil and Gas Law (Law No. 22 of 2001).
The Omnibus Law becomes effective on the date of its promulgation. This law contains its own provisions, as well as amends, deletes, or enacts new provisions in 78 laws. Below is a list of the laws affected:
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No. |
Sectors/Topics |
Laws being Amended |
Relevant Article in the Omnibus Law |
Pages in the Text of the Omnibus Law |
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I. |
Suitability and Utilisation of Space |
1. Law No. 26 of 2007 on Spatial Planning; |
Starting from Article 16. |
Page 12 onwards. |
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2. Law No. 27 of 2007 on the Management of Coastal Areas and Small Islands, as amended by Law No. 1 of 2014; |
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3. Law No. 4 of 2011 on Geospatial Information; and |
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4. Law No. 32 of 2014 on Marine. |
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II. |
Environmental Approval |
5. Law No. 32 of 2009 on the Protection and Management of the Environment. |
Starting from Article 21. |
Page 73 onwards. |
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III. |
Building Approval and Certificate of Worthiness |
6. Law No. 28 of 2002 on Buildings; and |
Starting from Article 23. |
Page 98 onwards. |
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7. Law No. 6 of 2017 on Architects. |
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IV. |
Marine and Fisheries |
8. Law No. 31 of 2004 on Fisheries, as amended by Law No. 45 of 2009. |
Article 27. |
Page 122 onwards. |
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V. |
Agriculture |
9. Law No. 29 of 2000 on Protection of Plant Varieties; |
Starting from Article 28. |
Page 145 onwards. |
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10. Law No. 18 of 2009 on Animal Husbandry and Animal Health, as amended by Law No. 41 of 2014; |
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11. Law No. 13 of 2010 on Horticulture; |
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12. Law No. 19 of 2013 on the Protection and Empowerment of Farmers; |
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13. Law No. 39 of 2014 on Plantation; and |
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14. Law No. 22 of 2019 on Sustainable Agricultural Cultivation System. |
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VI. |
Forestry |
15. Law No. 47 of 1999 on Forestry, as amended by Law No. 19 of 2004; and |
Starting from Article 35. |
Page 187 onwards. |
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16. Law No. 18 of 2013 on the Prevention and Eradication of Forest Destruction. |
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VII. |
Energy and Mineral Resources |
17. Law No. 22 of 2001 on Oil and Gas; |
Starting from Article 38. |
Page 220 onwards. |
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18. Law No. 4 of 2009 on Mineral and Coal Mining, as amended by Law No. 3 of 2020; |
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19. Law No. 30 of 2009 on Electricity; and |
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20. Law No. 21 of 2014 on Geothermal Energy. |
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VIII. |
Nuclear Power |
21. Law No. 10 of 1997 on Nuclear Energy. |
Article 43. |
Page 266 onwards. |
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IX. |
Industry |
22. Law No. 3 of 2014 on Industry. |
Article 44. |
Page 270 onwards. |
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X. |
Trade, Legal Metrology, Halal Product Assurance, and Standardisation and Conformity Assessment |
23. Law No. 2 of 1981 on Legal Metrology; |
Starting from Article 45. |
Page 280 onwards. |
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24. Law No. 7 of 2014 on Trade; and |
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25. Law No. 33 of 2014 on Halal Product Assurance. |
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XI. |
Public Works and Public Housing |
26. Law No. 1 of 2011 on Housing and Settlement Areas; |
Starting from Article 49. |
Page 310 onwards. |
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27. Law No. 20 of 2011 on Flats; |
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28. Law No. 2 of 2017 on Construction Services; and |
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29. Law No. 17 of 2019 on Water Resources. |
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XII. |
Transportation |
30. Law No. 23 of 2007 on Railways; |
Starting from Article 54. |
Page 365 onwards. |
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31. Law No. 17 of 2008 on Shipping; |
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32. Law No. 1 of 2009 on Aviation; and |
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33. Law No. 22 of 2009 on Road Transportation Traffic. |
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XIII. |
Health, Medicine and Food |
34. Law No. 5 of 1997 on Psychotropics; |
Starting from Article 59. |
Page 450 onwards. |
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35. Law No. 35 of 2009 on Narcotics; |
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36. Law No. 36 of 2009 on Health; |
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37. Law No. 44 of 2009 on Hospitals; and |
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38. Law No. 18 of 2012 on Food. |
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XIV. |
Education and Culture |
39. Law No. 33 of 2009 on Film. |
Article 66. |
Page 485 onwards. |
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XV. |
Tourism |
40. Law No. 10 of 2009 on Tourism. |
Article 67. |
Page 487 onwards. |
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XVI. |
Religious |
41. Law No. 8 of 2019 on the Management of Hajj and Umrah. |
Article 68. |
Page 492 onwards. |
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XVII. |
Postal, Telecommunications and Broadcasting |
42. Law No. 36 of 1999 on Telecommunications; |
Starting from Article 69. |
Page 505 onwards. |
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43. Law No. 32 of 2002 on Broadcasting; and |
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44. Law No. 38 of 2009 on Postal. |
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XVIII. |
Defence and Security |
45. Law No. 2 of 2002 on Police; and |
Starting from Article 73. |
Page 517 onwards. |
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46. Law No. 16 of 2012 on the Defence Industry. |
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XIX. |
Investment in Certain Sectors |
47. Law No. 7 of 1992 on Banking, as amended by Law No. 10 of 1998; |
Starting from Article 76. |
Page 527 onwards. |
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48. Law No. 25 of 2007 on Investment; and |
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49. Law No. 21 of 2008 on Islamic Banking. |
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XX. |
Employment |
50. Law No. 13 of 2003 on Manpower; |
Starting from Article 80. |
Page 533 onwards. |
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51. Law No. 40 of 2004 on the National Social Security System; |
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52. Law No. 24 of 2011 on the Social Security Program Agency; and |
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53. Law No. 18 of 2017 on the Protection of Indonesian Migrant Workers. |
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XXI. |
Cooperatives, Micro, Small, and Medium Enterprises |
54. Law No. 25 of 1992 on Cooperatives; |
Starting from Article 85. |
Page 573 onwards. |
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55. Law No. 38 of 2004 on Road; and |
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56. Law No. 20 of 2008 on Micro, Small, and Medium Enterprises. |
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XXII. |
Ease of Doing Business |
57. Staatsblad 1926 No. 226, in conjunction with Staatsblad 1940 No. 450 on the Disturbance Law (Hinder Ordonnantie); |
Starting from Article 105. |
Page 589 onwards. |
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58. Law No. 3 of 1982 on Mandatory Company Registration; |
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59. Law No. 6 of 1983 on General Provisions and Tax Procedures, as amended several times and most recently by Law No. 16 of 2009; |
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60. Law No. 7 of 1983 on Income Tax, as amended several times and most recently by Law No. 36 of 2008; |
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61. Law No. 8 of 1983 on Value-Added Tax on Goods and Services and Sales Tax on Luxury Goods, as amended several times and most recently by Law No. 42 of 2009; |
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62. Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition; |
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63. Law No. 40 of 2007 on Limited Liability Companies; |
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64. Law No. 28 of 2009 on Regional Taxes and Regional Levies; |
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65. Law No. 6 of 2011 on Immigration; |
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66. Law No. 6 of 2014 on Villages; |
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67. Law No. 7 of 2016 on the Protection and Empowerment of Fishers, Fish Breeders, and Salt Farmers; |
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68. Law No. 13 of 2016 on Patents; and |
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69. Law No. 20 of 2016 on Trademarks and Geographical Indications. |
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XXIII. |
Research and Innovation |
70. Law No. 19 of 2003 on State-Owned Enterprises; and |
Starting from Article 119. |
Page 687 onwards. |
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71. Law No. 11 of 2019 on the National System Science and Technology. |
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XXIV. |
Acquisition of Land |
72. Law No. 41 of 2009 on the Protection of Sustainable Food Crops Farmland; and |
Starting from Article 122. |
Page 690 onwards. |
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73. Law No. 2 of 2012 on Land Acquisition for Public interest Development. |
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XXV. |
Economic Zone |
74. Law No. 36 of 2000 on the Stipulation of Government Regulation on Lieu of Law No. 1 of 2000 on Free Trade Zones and Free Ports into Law, as amended by Law No. 44 of 2007; |
Starting from Article 148. |
Page 710 onwards. |
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75. Law No. 37 of 2000 on the Stipulation of Government Regulation in Lieu of Law No. 2 of 2000 on Free Trade Zone and Free Port of Sabang into Law; and |
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76. Law No. 39 of 2009 on Special Economic Zones. |
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XXVI |
Implementation of Government Administration to Support Job Creation |
77. Law No. 30 of 2014 on Government Administration. |
Article 175. |
Page 749 onwards. |
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XXVII. |
Local Government |
78. Law No. 23 of 2014 on Regional Government, as amended most recently by Law No. 9 of 2015. |
Article 176. |
Page 757 onwards. |
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Apart from its own provisions and the amendments to the above laws, we also found at least 407 regulatory materials in the Omnibus Law that need to be further regulated in government regulations. While each of these materials does not have to be regulated individually by specific government regulation, there are at least six regulatory materials, each of which must be regulated by specific government regulation. In addition, based on our analysis, there are nine regulatory materials that must be further regulated in presidential regulations.
It should also be noted that Article 185 of the Omnibus Law requires the government to enact implementing regulations to the Omnibus Law within three months after its enactment. That same article also requires the government to adjust all implementing regulations to the 78-amended laws within the same period. Based on various news reports, we understand that there are approximately 35 government regulations and 5 presidential regulations that are being prepared as implementing regulations to the Omnibus Law.
There is no doubt that the Omnibus Law will be bringing pivotal changes to Indonesia. But for now, the Omnibus Law is a pendulum without dominoes, in that actual changes will only be evident and felt once the government has enacted the implementing regulations.
KEY CONTACTS
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Bono Daru Adji
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Ahmad Fikri Assegaf
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Chandra M. Hamzah
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Ibrahim Sjarief Assegaf
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Eko Basyuni
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Eri Hertiawan
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HMBC Rikrik R.
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Putu Suryastuti
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Ahmad Maulana
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Wibowo Mukti
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Yogi Sudrajat Marsono |
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