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The omnibus bill revokes Article 159 that allows workers to file a lawsuit in an
industrial relations court or agency if they want to challenge the reasoning behind
the decision to lay them off.

A new social safety net mechanism has been added to the omnibus bill, called the
social security program for laid-off workers and managed by the BPJS, so long as
workers or their employers pay the premiums. This will be on top of existing
programs that cover health, work-related accidents, pensions, old age and life
insurance.

The government is also set to introduce a new one-off bonus mechanism in the
omnibus bill, requiring medium and large companies to pay an immediate salary
bonus depending on the workers' length of service in their companies. Termed a
"sweetener", the bonus is a one-off payment within one year after the omnibus law
becomes effective.

Stronger central government

The central government can change prevailing laws for the sake of acceleration of
job creation through a PP and may consult with the House of Representatives in
doing so, according to Article 170 of the omnibus bill.

New stipulations in the omnibus bill may also empower the Halal Certification
Agency (BPJPH) that operates under the Religious Ministry, to issue halal certificates
for consumer products. Article 1 of Law 33/2014 on halal products guarantees
currently stipulates that halal certification be based on guidance from the Indonesia
Ulema Council (MUI).

However, according to the amended Article 7 of the law, the BPJPH broadens
partnerships for halal certification to registered Muslim mass organizations (ormas),
on top of potential partnerships with related ministries or agencies, halal product
guarantors (LPH) and the MUI, as stipulated in the prevailing law.

Sovereign wealth fund

Chapter 10 on central government investment and the ease of national strategic
projects mandates the establishment of a "special authority" agency led by the
finance minister, a vehicle that President Jokowi has described as a sovereign
wealth fund.

The finance minister through the agency, to be called the Investment Management
Agency, can invest in financial instruments, manage assets for investment, partner
with trust funds, determine investment partners, give and accept loans and manage
all assets, according to Article 146 of the omnibus bill.

The agency can partner with third party entities in managing assets, forming joint
ventures or other partnership models, according to Article 150. The finance minister

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