Why the Omnibus Law Sparked Controversy in Indonesia
Even though it aims to increase economic growth in Indonesia, it turns out that there are several factors that make the law problematic

Indonesia has been in the world's spotlight since the passing of the Omnibus Law in 2020. This law, which covers a number of matters, including changes to labor laws, taxation, investment, and others, has sparked controversy among Indonesian people. There are parties who support and oppose this Omnibus Law. This article will discuss why the Omnibus Law sparked controversy in Indonesian society.

About the Omnibus Law

Omnibus Law stands for "Omnibus Law on Job Creation and Investment" or "Job Creation Law". This law was passed by President Joko Widodo on November 2, 2020. This Omnibus Law is designed to accelerate Indonesia's economic growth by facilitating investment and creating jobs. This law is also expected to open up job opportunities for new graduates and overcome the problem of unemployment in Indonesia.

Why Does the Omnibus Law Trigger Controversy?

1. The contents of the Omnibus Law are too complex

The contents of the Omnibus Law are too complex to make it difficult for the public to understand what changes are in it. Although the Omnibus Law is considered a necessary step to accelerate Indonesia's economic growth, the major changes stipulated in this law raise many uncertainties. Therefore, the Omnibus Law became a source of controversy because it was considered too complex and lacked transparency.

2. Impress Free Company

One of the provisions in the Omnibus Law is an amendment to Law no. 13 of 2003 concerning Manpower. Several articles in it stated that it would make it easier for companies to terminate employment with employees. This is of course a subject of debate because it is considered that it will free up companies to layoffs without any restrictions.

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3. Reducing Labor Protection

The Omnibus Law is also considered to reduce labor protection in Indonesia. One of the articles in the Omnibus Law allows outsourcing companies to place workers for up to 24 months and can be extended for up to 36 months. This is considered to eliminate the guarantee of permanent employment and frees up companies to use contract or outsourced labor.

4. Worried about harming the environment

The Omnibus Law is also considered to be detrimental to the environment. This is because the articles related to the environment are unclear and do not have sufficiently strict regulations. For example, the Omnibus Law allows companies to carry out mining and forest exploitation in conservation areas, without following clear procedures. This can cause environmental damage and harm the community around the area.

5. Worried about Worsing Social Inequality

The public is also worried that the Omnibus Law will exacerbate social inequality. This is related to the increase in working hours to 12 hours a day and a reduction in overtime pay of up to 50%. This can worsen the condition of workers, especially workers who are below the poverty line.

6. Non-transparent Omnibus Law Preparation Process

The process of drafting the Omnibus Law, which was considered not transparent, was also one of the reasons for controversy in society. Some parties consider that the process of drafting this law was carried out in a hurry and without involving various related parties. This has led to concerns that the Omnibus Law does not pay attention to the interests of society, especially workers and the environment.

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7. Demonstrations in Society

The Omnibus Law has been in the public spotlight since it was first ratified. This led to sizable demonstrations in a number of major cities in Indonesia. This demonstration demonstrates that society views the Omnibus Law as a threat to workers' rights and the environment. This demonstration led to various demands that were expected to improve the Omnibus Law.

8. Political Influence

The Omnibus Law is also influenced by political factors. A number of parties consider that the Omnibus Law was drafted in order to fulfill political interests. This causes the Omnibus Law to be seen as an attempt by the government to strengthen its political position and gain support from the business sector.

9. Impact of the COVID-19 Pandemic

The Omnibus Law was passed in the midst of the ongoing COVID-19 pandemic in Indonesia. This has led to concerns that the Omnibus Law will exacerbate the economic and social conditions of people who have been affected by the pandemic. Apart from that, the pandemic condition has also made it difficult for many parties to protest against the Omnibus Law.


The Omnibus Law sparked controversy in Indonesian society for various reasons. The content of the Omnibus Law is too complex, it is feared that it will free companies, reduce labor protection, harm the environment, exacerbate social inequality, the drafting process is not transparent, demonstrations in society, political influence, and the impact of the COVID-19 pandemic are the causes of the Omnibus Law controversy. Therefore, efforts are needed to increase transparency in drafting laws and involving various related parties. It is hoped that this will result in policies that are more just and profitable for all Indonesian people.

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Why the Omnibus Law Sparked Controversy in Indonesia
Satria Wisnu Aji 3 May, 2023
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