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Explainer | Why are Indonesians protesting the Omnibus Law if Jokowi says it will boost jobs and investments?

  • President Joko Widodo’s administration is proposing a new bill as part of economic reforms to simplify regulations and encourage investment
  • Celebrities and influencers have been promoting the bill but thousands are protesting against it, citing human rights and environmental concerns

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Indonesian President Joko Widodo pictured in October. Photo: AP
Indonesia’s President Joko Widodo said in his state of the union address last week that the coronavirus pandemic should be a time to reform Southeast Asia’s largest economy after it contracted by 5.32 per cent in the second quarter, amid fears of an imminent recession.
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Central to Widodo’s reforms is the Omnibus Law, also known as the jobs creation bill, which would simplify overlapping regulations as a means of attracting more foreign investment and boosting the economy.

Indonesian women buy vegetables in Depok, West Java on August 8. Photo: EPA
Indonesian women buy vegetables in Depok, West Java on August 8. Photo: EPA

But it has sparked criticism from academics, members of civil society and grass-roots movements which have called for more transparency, saying the government did not sufficiently engage with the public in discussing the proposed law’s contents. There have also been concerns over how it could affect the country’s environment, human rights and labourers.

For months, many Indonesians – among them labour unions – have taken to the streets to oppose the law. Thousands of people, including labourers and students, joined a rally outside parliament on Friday against the planned changes, while labour unions will hold another protest in 20 Indonesian provinces on August 25.

Meanwhile, Jaringan Bonus Demografi (Demographic Bonus Network) coordinator Yoki Yusanto recently told Indonesian newspaper Koran Tempo that his group paid 22 celebrities and influencers between 1.5 million and 10 million rupiah (around US$101 to US$677) each to show support for the Omnibus Law on social media using the hashtag #IndonesiaButuhKerja or #IndonesiaNeedsJobs.

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