Omnibus Job Creation Bill Passes, Allowing Large-Scale Land Grabbing by Corporate and Flexible Employment System

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Jakarta, 6 October 2020. The passing of the Job Creation or Omnibus Bill into law on 5 October 2020 is once again put to the test. The Job Creation Bill, rife with the interest of investors and large corporates to control the lives of many, is believed to bring about a catastrophe for people and the environment.

Linda Rosalina, a campaigner from TuK Indonesia, stated that even before the Job Creation Bill was passed, control of land in Indonesia has been unfair. Passing the law will only perpetuate companies to monopolize land by taking over large areas of land.

TuK Indonesia’s study (2018, 2019) found that only 25 company groups control 5.9 million hectares oil palm concessions and 7 company groups control 5.7 million hectares industrial timber plantations. Three of these groups control both oil palm and timber plantations: Sinar Mas (4 million ha), Raja Garuda Mas (1.2 million ha), and Korindo (300,000 ha).

Novri Auliansyah from the National Board of the National Union Confederation (KSN) shared a similar notion. “The passing of the Job Creation Law in the midst of a major wave of rejection from workers, farmers, fishers, academics, even religious leaders, emphasizes one thing. The House of Representatives does not love the people of Indonesia; they are only willing to fight for the oligarchy and the elites.”

As critical actors in a corporate’s business, workers will be facing losses many times over. In manpower issues, this law will potentially create a flexible job market that enables employers “easy hire and easy fire”. Outsourced workers, previously stipulated in Law No. 13 of 2003 on Manpower to limit only workers not working in activities, will see these provisions drastically relaxed and two-year work period has been eliminated for contract workers. “This makes it difficult for workers to obtain certainties of their rights to become permanent workers and receive severance pay,” Novri said.

“Seeing this potential disaster, we appeal to the President, House of Representatives (DPR), and House of Regional Representatives (DPD) to be willing and revoke this Job Creation Law. In addition to being flawed in its creation processes, the law contains problematic articles,” Linda added.

Contact Persons:
Linda Rosalina, TuK INDONESIA/ +62 812-1942-7257
Novri Auliansyah, National Union Confederation/ +62 857-8228-1113