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Indonesian unions reject emergency regulation replacing Omnibus Law

12 January, 2023IndustriALL affiliates in Indonesia have condemned the emergency regulation in lieu of the Job Creation Law (Perppu) issued by the President in December last year, as it fails to meet union demands.

The controversial Omnibus Law, officially known as Law of Job creation, was passed in Parliament in October 2020, but declared unconstitutional by the Indonesian constitutional court.

At the end of December 2022, President Joko Widodo issued an emergency regulation on Job Creation to replace the Omnibus Law, with the pretext of addressing global recession risks in 2023 and for attracting more foreign investment at the expense of workers’ rights.

The Indonesian Trade Union Confederation (KSPI), Confederation of All Indonesian Workers' Union (KSPSI), Confederation of United Indonesian Workers (KPBI) and others, along with the Indonesian Labour Party, have rejected the new regulation.

Unions and the party claim that some provisions in the regulation have given governors discretionary power to determine minimum wage. For instance, the insertion of the word "may", the vague variable index, and the power of the governor to adopt a different formula could exclude particular industries from the minimum wage regulation and infringe workers’ rights.

"The emergency regulation fails to meet the unions' demands. We reject the contents based on nine unfavourable terms and conditions, including outsourcing, severance pay, recruitment of foreign workers and criminal sanctions against employers which will disadvantage workers,”

says Iwan Kusmawan, IndustriALL Indonesia council chairperson.

Unions and the Labour Party are planning a rally at the Presidential Palace on 14 January. The Confederation of Indonesia Prosperity Trade Union (KSBSI) has taken the Perppu to the Constitutional Court.

“We urge the Indonesian government to repeal the emergency regulation condemned by Indonesian unions. The government should respect the ruling of the constitutional court and take workers’ concerns into consideration,”

says Shinya Iwai, IndustriALL regional secretary:
“Indonesian affiliates have campaigned against the Job Creation Law since its introduction, holding numerous demonstrations, filing judicial reviews at the constitutional court and lobbying parliamentarians for support. IndustriALL will continue to support our Indonesian affiliates' fight against anti-labour regulations detrimental to workers’ rights.”
IndustriALL’s 3rd Congress passed a resolution urging the Indonesian government to cancel the Job Creation Law.