"Indonesian unions reject emergency regulation replacing Omnibus Law", 12 January 2023

IndustriALL affiliates in Indonesia have condemned the emergency regulation in lieu of the Job Creation Law (Perppu) issued by the President in December last year, as it fails to meet union demands.

The controversial Omnibus Law, officially known as Law of Job creation, was passed in Parliament in October 2020, but declared unconstitutional by the Indonesian constitutional court.

At the end of December 2022, President Joko Widodo issued an emergency regulation on Job Creation to replace the Omnibus Law, with the pretext of addressing global recession risks in 2023 and for attracting more foreign investment at the expense of workers’ rights.

The Indonesian Trade Union Confederation (KSPI), Confederation of All Indonesian Workers' Union (KSPSI), Confederation of United Indonesian Workers (KPBI) and others, along with the Indonesian Labour Party, have rejected the new regulation.

Unions and the party claim that some provisions in the regulation have given governors discretionary power to determine minimum wage. For instance, the insertion of the word "may", the vague variable index, and the power of the governor to adopt a different formula could exclude particular industries from the minimum wage regulation and infringe workers’ rights...