Omnibus Law in Indonesia: A Comparison to the United States and Ireland

The Omnibus Law is often discussed and debated, especially in its implementation in Indonesia. Omnibus Law is considered as a solution to make legislation more efficient, Omnibus Law is something new in the formation of legislation in Indonesia. Previously, the Omnibus Law was often used in the common law legal system, and several civil law countries have also implemented the Omnibus Law. In this study, the authors examine the United States and the Philippines. The concept of the Omnibus Law is not only used for one type of law but has penetrated into other sectoral laws. In the Philippines, since 2003 the Omnibus Law has been enacted as a method for forming legislation. It is different from the United States, which has implemented the Omnibus Law since 1850. This research refers to a comparison of the Omnibus Law in the Philippines because the Philippines is a country in the Southeast Asia region just like Indonesia and adheres to a legal system that combines common law and civil law which does not very different from Indonesia, further comparison with the United States Omnibus Law, because the United States is also one of the countries that is the mecca of world law. This study uses normative legal research, using secondary data which is processed using qualitative techniques. This study uses a comparison of two countries which makes this research different from other research related to the Omnibus Law, with the aim of examining the position of the Omnibus Law in Indonesia and making comparisons with the United States and the Philippines.

Omnibus law is a method of forming laws. The use of the omnibus law is often problematic from a democratic aspect. Omnibus law arrangements in Indonesia have been legalized through Law Number 13 of 2022, but it remains a problem regarding participation as a pillar of democracy. Therefore, the concept of comparison is needed for further refinement. This research is normative research with statutory, case study, and comparative approaches. The results of the study are: (1) the application of the omnibus law in Indonesia in the case of the Job Creation Law is undemocratic because it narrows the space for public participation, (2) changes to the Law concerning the Formation of Legislation, especially those relating to participation, representation of participation, and the provision of a two-way information system is a necessity for realizing a democratic omnibus law in Indonesia.

10 | International Union Rights | 27/4 FOCUS | TRADE UNION RIGHTS IN ASIA Authoritarianism in Asia and the effects on trade union rights The COVID-19 pandemic has created greater inequality and divisions between the capitalist and working classes globally. In the context of Asia, workers have been devastated by job loss, order cuts, and rigid and punitive lockdown measures, catalysing workers’ struggles throughout the region. Trade unions have ramped up their efforts to organise battered workforces, respond to the surge of labour rights violations, hold overseas buyers accountable, and in many cases fill the role of the state (and employers) by providing relief to destitute workers. At the same time, trade unions are facing the expansion of state power that comes with repression of the labour movement, deregulation of labour laws, and undermining basic labour and human rights amid the pandemic. The struggle from above has taken the form of the consolidation of state central authority that began with measures such as lockdowns, border closures, curfews, and declared states of emergencies in the name of public health. In other words, militarisation in place of spending on actual public health measures such as free testing and sufficient relief that would make it possible for people to stay in their homes. At the same time, using economic downturn as an excuse, states have collaborated with industry and elites by imposing anti-worker austerity budgets and deregulation of labour laws. Recent attacks against worker and trade union rights are part and parcel of the minefield of anti-worker legislation that is sure to cause further job losses, increased informalisation, and worsening working conditions, setting the labour movement back decades. Major anti-worker and anti-union state interventions have triggered massive pushback from the labour movement and civil society. In the following, we will illustrate two notable examples: the Omnibus Law in Indonesia and the new Labour Codes in India, and their discontents. Indonesia’s Omnibus Law On 3 November 2020, Indonesian President Joko ‘Jokowi’ Widodo signed a controversial bill, the ‘Omnibus Bill on Job Creation’ into law. It amends 81 existing laws related to research and innovation, supporting investment, mining regulation, environmental protection, economic zones, empowerment of small business, land procurement, and labour. Many labour unions, academics, and civil society groups have noted the many procedural flaws in the Bill1. It has been described as ‘the worst’ law to pass since the fall of the authoritarian regime in 19982. The deliberation process was marked by a lack of transparency and public participation. The draft Bill was not circulated to the public, nor made available from official sources. The Omnibus Law also gives more power to the central government, creating a roadblock to the country’s process of democratisation and decentralisation. According to one Indonesian journalist, ‘the 1945 constitution sets the parliament as the supreme authority, but the Bill would effectively give the executive near-absolute power. The president would have absolute executive and legislative power’3. Greater labour market flexibility on the horizon Jokowi and his ministers argued that the Bill was badly needed at a time of economic crisis, slumping growth, and increased unemployment, asserting that it would remove red tape, promote investment, and create more jobs. They also promised that it would protect workers, especially contract workers, by requiring outsourcing agencies to register in a centralised online system that would prevent illegal agencies from operating. However, the law also grants the central government the power to exempt business licenses. The Omnibus Law will promote investment and create jobs at the expense of labour and human rights. As explained in a recent report by Amnesty International, the Omnibus Law undoubtedly erodes basic human rights4. For example, it amends some important articles in Law No. 13 of 2003 on Manpower, allowing cuts to severance pay, and flexibility of working hours. This will surely result in longer working hours, requiring workers to perform multiple duties at work, and enable employers to use temporary workers for an indefinite time without proper contracts5. Such an environment will be rife for union busting. While temporary workers are still technically allowed to join unions, they are more easily intimidated by employers who could freely sack workers suspected...

: Indonesia’s omnibus highlights the drafting technique’s importance and development. In pursuit of addressing the bureaucratic burden and proliferation of overlapping regulations, the Government of Indonesia introduced the omnibus drafting technique, a way of amending multiple laws within a single law, and the first of its kind in Indonesia. The first omnibus law in Indonesia was followed by public outrage because it contained unpopular provisions, did not comply with drafting techniques, and did not satisfy public participation standards. The omnibus law technique had not been adopted to the official Guide of Legislative Drafting when the law was made. In the next development, other omnibus laws on health and financial agencies were enacted. Each of them has its unique features. Omnibus Job Creation Law and the omnibus technique do actually affect the legislative drafting style in Indonesia’s recent lawmaking practices, namely the amendment style and the importance of public participation given omnibus’s massive size. Therefore, it is worth pausing to visit the initial development of the omnibus law in Indonesia while also foreseeing how it would affect drafting style and evolve.

There are five main factors that affect the entry of investors into a country, namely political stability, legal certainty, consistent policies, regulations, and taxes. This research is a literature study that summarizes some literature relevant to the theme. Data collection methods are literature studies that use books and literature, notes, journals and others as the main research objects. The purpose of this paper is to know the investment climate in Indonesia and the application of omnibus law as a solution, as well as to know the challenges of implementing omnibus law in Indonesia. The results showed that Indonesia was dubbed a hyperegulation country that reached 42,996 with details, central regulations as many as 8,414, ministerial regulations 14,453, non-ministry government agency regulations 4,164, and local regulations as many as 15,965. Too much will have an impact on the overlap and inconsistency of regulations between the center and the area causing vertical and horizontal conflicts. The government deregulates and debirokratization through omnibus law with two substances, namely the Omnibus Law Copyright Act which contains 11 clusters that combine 79 laws in which it concerns rules on employment, licensing alignment, investment requirements, to government administration. The challenge of implementing omnibus law is that Indonesia adheres to the civil law system while the concept of omnibus law adherents common law and still new. There is a public reaction between the pros and cons because the manufacturing process is not transparent and participatory, and omnibus law is not in accordance with the provisions of the establishment of laws and regulations. However, legally omnibus law is appropriate after the passing of Law No. 15 of 2019 concerning Changes to Law No. 12 of 2011.

This study aims to determine the sentiments of scholars in Indonesia regarding research and studies that address the topic of Omnibus Law. The data analyzed was in the form of research publications related to the Omnibus Law, with as many as 60 articles spanning 2017 to 2020. Based on the analysis results, the assessment of texts related to Omnibus Law in Indonesia shows a positive sentiment of 40%, a neutral sentiment of 32%, and a negative sentiment of 28%. The optimistic view discusses the importance of the Omnibus Law, which summarizes the bureaucracy and solves the many overlapping regulations. Negative sentiment has given much criticism about the passage of the Omnibus Law, which is inappropriate, not transparent, and controversial, such as the Job Creation Bill. Meanwhile, neutral sentiment is in an intermediary position, namely discussing the positive sides of the Omnibus Law but also criticizing things that are not quite right and providing solutions and suggestions. Intellectual sentiment shows the highest positive and contrasts public sentiment in demonstrations due to disappointment with implementing the Omnibus Law. As an effort to cut bureaucracy, the Omnibus Law also discusses and regulates halal certification. The Omnibus Law's existence has positively influenced accelerating the halal certification process in Indonesia, especially targeting the micro and small business sectors. This aligns with Indonesia's optimistic mission to become the center of the world's halal industry in 2024

As a state of law, Indonesia, which adheres to the Civil Law system, actually makes omnibus law which is a legal system of Common Law. The omnibus law is considered to be the answer to the overlapping of all existing laws and regulations in Indonesia. Omnibus Law if it is associated with the Legal System in Indonesia is contrary to the system that has been applied in Indonesia. There are 7 factions that agree and 2 factions that reject the discussion of the Omnibus Law Bill. In the process, Article 5 of Law No. 12 of 2011 and Law No. 15 of 2019 contains the principle of the formation of legislation, one of the problems in the formation of the Omnibus Law Bill is the principle of openness. This is because there are various indications, including the exclusion of groups related to or having an impact on this Omnibus Law Bill. There was also a member of the DPR who was supposed to be one of the working committees (Panja) to discuss the Omnibus Law Bill which was not involved because there was no notification. There is also a difference in the number of pages in the Omnibus Law Bill. In the regulations, referring to Law Number 12 of 2011 and Law Number 15 of 2019 concerning changes to the Formation of Laws, there are no clear norms and explanations regarding the Omnibus law process both in forming laws and revising laws. The absence of a legal basis for the formation of this omnibus law rules out the legitimacy of a law. Thus the position of Omnibus Law in Indonesia is not in accordance with the existing legal system in Indonesia, especially related to the Indonesian legal system (Civil Law) and Law Number 12 of 2011 and Law Number 15 of 2019 concerning Amendments to Law Number 12 of 2011 concerning the Establishment of Legislation.

Omnibus law is often regarded as a practical solution to harmonize and synchronize statutory regulations. In practice, the application of this model tends to be pragmatic and less democratic. This paper aims to analyze the essential considerations for selecting the omnibus law model in Indonesia, following its implementation challenges and the relevance of using Artificial Intelligence (AI) in the legislation. By combining doctrinal and socio-legal research methods, this paper answers the legal enquiry for optimizing AI through omnibus law model legislation. The results of this study indicate that AI cannot immediately replace the role of the legislative institution but it merely acts as a "tool" and not as a "determinant" in the legislative process. In this context, there are two AI features that can assist legislative bodies in designing the omnibus law model; they are document review as a construction scanner for legislation and predictive analytics as a prediction system. Both features can help legislative bodies optimize the omnibus law model, which tends to have a high complexity level. As a follow-up, the government should establish a special institution to optimizing the AI-based legislation.
 KEYWORDS: Omnibus Law, Artificial Intelligence, Legislative Drafting, Public Participation.

The implementation of the Omnibus Law in Indonesia, particularly the Job Creation Omnibus Law, has raised several challenges related to the principles of the hierarchy of legislation and legal certainty. The Omnibus Law, which combines various regulations from different levels of law without regard to hierarchical order, has the potential to create legal uncertainty, undermine the legal order, and reduce protections for workers' rights and the environment. This study aims to examine the compatibility of the Omnibus Law method with the principles of Indonesia's hierarchy of legislation and identify its impact on legal certainty. This research employs a normative legal method with approaches that include legislation, conceptual analysis, and comparison, as well as analyzing data from various primary and secondary legal sources. The research findings indicate that the Omnibus Law does not fully align with the principles of the hierarchy of legislation outlined by Hans Kelsen and Hans Nawiasky, and it creates regulatory overlaps that disrupt the legal system's stability. The implications of this research emphasize the importance of adjusting the Omnibus Law concept to better align with Indonesia's legal framework, as well as the need for more detailed implementing regulations to minimize legal uncertainty across various sectors.

Omnibus law arrangements are progressing. However, the technique of drafting laws through an omnibus law is not simple. In Indonesia, Article 64 of Law Number 13 of 2022 does not fully regulate the omnibus method which can cause legal uncertainty. Normative legal research with statutory, comparative, and conceptual approaches is the choice in this research. The results of the research: (1) omnibus law as a method of drafting laws in Indonesian is not easy to understand and implement, it even has the potential to increase the number of new regulations; (2) the thematic omnibus law is a simple law drafting design by integrating several different laws into one law that has relevance to the theme of achieving national goals.

The Omnibus Law in Indonesia has generated significant controversy due to its far-reaching effects on legal, economic, and social dimensions, particularly regarding worker rights and the balance of business interests. This study aims to deliver a thorough review of the Omnibus Law through a systematic approach, providing a valuable resource for researchers, policymakers, and stakeholders. Utilizing bibliometric analysis and systematic literature review methods, we analyzed 64 articles from Scopus, employing visualization tools such as VOSviewer and R-Studio to identify publication trends. Our analysis shows a global rise in interest in the Omnibus Law, with a notable increase in publications post-2020 and substantial engagement from international researchers. The results indicated that 40.6% of the articles supported the Omnibus Law, 37.5% opposed it, and 21.9% maintained a neutral stance. While the majority of articles favored the law, the significant number of critical perspectives underscores the necessity for a more in-depth examination, especially regarding worker rights. Key concerns include the law's approach to minimum wage, alignment with Islamic values, institutional integrity, and potential biases favoring businesses. We recommend establishing a wage mechanism that reflects living standards and inflation, as well as engaging Islamic legal experts to protect worker rights. Additionally, the Omnibus Law addresses issues beyond labor, such as climate change, legal protections, forest dynamics, and transparency, highlighting its extensive implications for Indonesia and opening numerous avenues for future research.

This research critically analyzes the influence of the omnibus law technique on the quality of criminal law formulation in Indonesia, particularly following the enactment of Law No. 13 of 2022 regarding Amendments to Law No. 12 of 2011 on the Formation of Legislation. Although the omnibus law method formally recognizes the integration of multiple legal substances within a single statute to enhance legislative efficiency and regulatory synchronization, empirical evidence demonstrates that its application in the criminal law domain creates serious substantive and procedural challenges. The research employs a normative legal approach supplemented by conceptual analysis to examine the alignment between omnibus law practices and the principles of good legislation (good legislation principles) as stipulated in Article 5 of Law No. 13 of 2022. The findings reveal that while omnibus law offers administrative efficiency, its implementation in criminal legislation generates significant problems regarding norm clarity, public participation, and legal legitimacy. Specifically, the technique tends to obscure the principle of legality (nullum crimen sine lege), reduce deliberative quality in legislative processes due to executive dominance, and weaken public participation in legislative procedures. Furthermore, the rapid processing of omnibus bills with limited public consultation compromises the substantive legitimacy of resulting criminal law provisions. This research concludes that implementing omnibus law techniques in criminal legislation must be accompanied by reinforced mechanisms for meaningful public participation, enhanced transparency in legislative discussions, and rigorous norm quality testing prior to enactment. Without such safeguards, the legislative innovation intended to simplify legal frameworks risks creating new legal uncertainty within Indonesia's national criminal justice system. The research advocates for either restricting omnibus law application to non-criminal legislation or fundamentally restructuring its procedural framework to comply with constitutional standards of democratic lawmaking.

The omnibus law model has become a new method of legislative drafting in Indonesia, first applied to the Job Creation Law and later enacted as Law 11/2020. While there were no implicit guidelines in Legislative Drafting Law 12/2011, this adoption was imported from several countries like the United States and Ireland to simplify regulations before the method was subsequently formalized and included in Legislative Drafting Law 13/2022. This paper explored the pathway and dynamics of the omnibus law adoption in Indonesia's law-making procedure and analyzed its further impacts on whether such a method has fruitfully improved the quality of the enacted regulation in establishing a more friendly investment policy. Through doctrinal method, this study showed that the opportunity to apply the omnibus model in Indonesia depends on the effectiveness, success, and benefits of respective regulations. In contrast, the application of the omnibus law model should respect democratic principles and avoid public harm. As shown in three different countries, i.e., Indonesia, the United States, and Canada, public concerns on lack of participation should be taken seriously to hinder undemocratic ends through "democratic" means. Alternatively, accountability of the drafting process should be considered a priority. In summary, the increasing trend of adopting the omnibus model should be first adopted and promulgated through legislative products whose promulgation must be with a formidable law-making procedure.

This law has a significant impact on various aspects of people's lives, including the economy, labor, and the environment. This study aims to analyze the Omnibus Law on Job Creation from an Islamic perspective with a focus on aspects of social justice, protection of workers' rights, and environmental impacts. However, the problems are (1) How is the Islamic perspective on social justice regulated in the Omnibus Law on Job Creation Law? (2) How is the protection of workers' rights in the Omnibus Law on Job Creation Law seen from an Islamic perspective? (3) How is the environmental impact of the implementation of the Omnibus Law on Job Creation Law from an Islamic perspective?. This research uses a normative juridical method with a qualitative approach as well as conceptual and statutory regulations (normative-juridical). By analyzing legal documents, and Islamic literature, related to the Omnibus Law on Job Creation Law. This approach will help in understanding aspects of social justice, protection of workers' rights, and environmental impacts associated with the law. The results show that, although the Omnibus Law on Job Creation is designed for the public good with the aim of promoting economic growth and job creation, there are discrepancies with the principles of Islamic Law, particularly in terms of social justice, welfare, and protection of workers' rights. Some of the rules in this law tend to favor employers, which can be detrimental to workers and society, and contradict the concept of justice in Islam. In addition, the negative impact on the environment that may arise from the implementation of this law is also not in line with Islamic principles that emphasize the importance of preserving nature and the balance of the ecosystem.

Empirical facts show that there are 42 thousand laws and regulations in Indonesia. As a result, there are many overlapping regulations, both in the same hierarchical level and / or with the regulations below. This condition makes the Omnibus Law urgency in statutory regulations. Omnibus Law is one of the important alternative choices by harmonizing legislation. The Omnibus Law is an umbrella law because it regulates thoroughly and then has power over other rules. Stufenbau theory, the legal system and the operation of law are the basis for analysis that the harmonization of the Omnibus law becomes a protector for executives (implementing legislation) who will innovate and create divine justice in economic progress and investment. The implementation of the concept of omnibus law in Indonesia is a hierarchical order of linear legislation with Law Number 15 of 2019 concerning the Formation of Legislations. The form of a law is not a basic law, but a law which is equivalent to other laws, which all or part of the provisions are amended or abolished by making new norms.