The COVID-19 pandemic is very influential in all aspects of life on a large scale, in this case one of which is ECONOMY. Not only nationally, but globally.
Therefore, on August 14, 2020, President Jokowi will implement the Omnibus Law in 2021 as a quick response to facing the Indonesian economy. This was conveyed in the reading of the 2021 Financial Note at the DPR Building.
What is meant by the Omnibus Law?
Omnibus law is a regulation or Act (UU) covering a wide range of issues or topics, or “an all-encompassing law”. Intended to amend, trim and / or repeal a number of other laws.
“The tax omnibus law and the provision of various tax incentives that are precise and measurable are expected to be able to encourage increased investment and national competitiveness, accelerate economic recovery after the Covid-19 pandemic, and spur economic transformation,”.
President Jokowi also said that there are still many overlapping regulations in Indonesia. This results in inefficient and convoluted bureaucratic performance. This also creates space for corruption to speed up complicated bureaucratic processes.
There are 3 things that are targeted by the government in the Omnibus Law:
1. Taxation
2. Creating Jobs
3. Empowerment of MSMEs (UMKM)
The Pros and Cons of Omnibus Law
Pro Omnibus law:
The Omnibus law encourages efforts to strengthen the national economy by creating jobs and issuing tax facilities.
Cons of Omnibus Law:
1. Omnibus law has the potential to ignore the formal provisions of the formation of laws
2. The Omnibus law narrows openness and public participation in the formation of laws