Job Creation Law: The Omnibus Law's Long, Rolling Journey

Sophia Adelia

Contributor

08 May 2026 · 10:05 08 May 2026 10:05 WIB 7 minutes reading time: 7 minutes 5 read

For some Indonesians, the name "Job Creation Law" (or Omnibus Law on Job Creation) is synonymous with fierce pros and cons and massive demonstrations.

Ilustrasi Gambar Omnibus Law yang Terus Bergulir (Source: AI ChatGPT, Redaksi Literasi Hukum Indonesia)

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Table of Contents

1. Flashback: The Birth of Omnibus Law
2. A New Chapter: Conditional Unconstitutionality and the Birth of Perppu
3. Substance Change: Employment Cluster
4. Turning Point: The 2024 Constitutional Court Decision that Changed the Course
5. Current Conditions: Early 2026 to Present
6. Impact and Future Prospects

Legal Literacy - For most Indonesians, the name "Job Creation Law" (or Omnibus Law on Job Creation) is synonymous with fierce pros and cons and massive demonstrations. Born with the promise of cutting bureaucracy, attracting investment, and creating jobs, this regulation has been one of the most controversial policies of the reform era since its inception. However, its journey did not stop there - it was passed, tested in Constitutional Court, declared conditionally unconstitutional, then replaced with Government Regulation in Lieu of Law (Perppu), then re-enacted into law, and challenged again.

Until now, Law Number 6 of 2023 on Stipulating Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law (which is still called by the same name) is still rolling in the vortex of judicial review at Constitutional Court, while the government and the House of Representatives are currently drafting a new Manpower Bill as a follow-up to the Constitutional Court's decision. Let's explore the long journey of this regulation and its latest dynamics.

1. Flashback: The Birth of Omnibus Law

The idea of Omnibus Law on Job Creation was first expressed by President Joko Widodo in his inauguration speech on October 20, 2019. The President believes that an omnibus law is needed to overcome overlapping regulations in Indonesia, especially those related to investment and employment.

The government then drafted the Job Creation Bill (RUU) which was declared completed on February 12, 2020. The discussion process in the DPR was carried out very quickly - in about seven months, at least 64 meetings were held, including in the early hours of the morning, weekends, and during recess. Finally, the bill was passed in a plenary meeting on October 5, 2020 as Law Number 11 of 2020 on Job Creation.

However, the hasty ratification process was sharply criticized. Laborers and elements of civil society considered that the discussion did not involve meaningful public participation. Rejection was marked by mass demonstrations in various regions because it was feared that this regulation would only benefit employers and harm workers' rights.