Page 46 - e-KLIPING KETENAGAKERJAAN 30 JANUARI 2020

The second problem is the substance of this clean sweep legislation. The
government always emphasizes that this omnibus law is needed to improve the
investment climate and to make it easier to recruit employees. These are both seen
as vital to spurring on economic growth to be higher than the current annual level of
5 percent.

The problem is, the government gives the impression of blaming regulations on the
environmental and forestry sector for hampering investment. The fact is these
regulations were drawn up to protect the ecosystem so that the exploitation of
natural resources can be sustainable. Ignoring the environment for the interests of
economic growth means going against the global trend of increasing concern about
the climate crisis.

Moreover, what makes investors reluctant to come to Indonesia is not simply
overlapping regulations, but the inconsistency of the way regulations are
implemented on the ground. There is considerable confusion, for example, in
obtaining land for mining and plantations. The permit process is rife with collusion
and corruption, from the regional level all the way to the central government.

Therefore, the president should fire officials who take bribes, not cut back the
regulations. Unfortunately, the Corruption Eradication Commission, which has long
fought against graft, has been emasculated. If this policy is continued, dramatic
changes to regulations in the interests of tycoons will whitewash all of the
wrongdoing that has long taken place in the forestry and mining sectors. The public
loss will only grow.

There are also major problems with labor regulations. Only listening to businesses,
without hearing inputs from workers, will exacerbate conflicts between the two.
Investors have long complained about labor regulations in Indonesia, but this
problem must be solved by listening to both sides - the unions and business
associations, both of whom have their own interests.

As a result, there is a fundamental misdiagnosis in the drawing up of this omnibus
law. If this is not addressed, the government and the DPR could give the wrong
recipe to the public. Instead of turning Indonesia into a developed nation, we could
be struck by a protracted crisis.

Page 45 of 87.