The Political Dimension of the Omnibus Law

Arsip Pribadi

M Alfan Alfian

Political Science Post-Graduate Director at National University and Member of HIPIIS Central Executive Board Politics requires a contest of ideas and interests among stakeholders.

While the main focus of the omnibus bill is to accelerate investment growth with the aim of strengthening economic growth, the main ideas overlap with the study of political development.

Political development is not merely focused on development strategies but requires a broad analysis of political forces. It is in this context that the political dimension of the omnibus bill is connected with competing ideas and their meeting points.

A review of strategies or development politics and an analysis of the competition among actors with certain interests in a democratic political system is therefore inevitable. In other words, the ideas and competition of interests among actors need to be considered. Don\'t forget long-term reflection and comparisons with the experiences of other countries.

As for its basic idea, it is clear that the omnibus bill is intended to make Indonesia’s economic growth skyrocket in such a way that it is not trapped in the labyrinth of middle-income traps. This noble intention must be viewed in the context of the political economy. All agree that Indonesia, which was recently removed from the list of developing countries by the United States, should avoid the middle-income trap. This is what prompted the government to find a way to make its economic policies effective.

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When it comes to the issue of broad political development, the development trilogy that was popular during the New Order era comes to mind. The message is to make economic growth skyrocket and equitable development and its results can be realized on the foundation of dynamic national stability.

That formula is not entirely wrong, even though in our time, political stability is tantamount to democracy. The state can no longer act as it wishes even to the extent of authoritarian action.

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KOMPAS/DAHLIA IRAWATI

Rejection Omnibus Law – Dozens of students from the People Alliance for Democracy hold up posters at a rally at City Hall in Malang city, East Java, on Monday (24/2/2020). The protesters objected to the omnibus bill on job creation, which they claimed would sacrifice the normative rights of the community.

In the context of development politics, the ideas and steps taken by the government with the formulation of the omnibus law are understandable to a certain degree. Efforts to apply a number of the the Omnibus Bill is a political step that is not wrong. This is because the political system in Indonesia allows it.

That a legislative product must go through a process of discussion with the legislative body. Both the government and legislative members are formal actors in determining legislation products. And, it is also understandable that the government is optimistic, because the political map of the 2019 post-election legislative body is conducive. In terms of formal political support, it is fair to say the government is "ahead of the game".

Competing interests

However, the issue certainly does not merely lie with the government and legislative institutions. The voices and aspirations of other stakeholders must also be heeded. They belong to the category of interest groups, which in the case of the omnibus baw can be transformed into pressure groups that are no less noisy than the legislative body in making their aspirations heard.

Therefore, the political dimension of the deliberation process, up to the passage of the omnibus bill into law, will also involve some escalating wrangling among interest groups. For example, in the context of the omnibus bill on job creation, various interest groups have emerged, each with different pressure points of aspiration.

Of course, those having certain interests are not merely the diametrical groups of entrepreneurs versus workers. Resistance of regional governments, whose authority is being "rearranged" by the central government for streamlined investment policies, also needs to be anticipated. Not to mention other aspirations, for example, from environmental conservation groups, human rights activists and small and medium business actors.

It is in this context that the government and the legislative institution must not be exclusive or close themselves up. The government and its supporting political forces in the legislative institution must be patient and diligent in dialogue in a democratic atmosphere. Legislative policymaking in the context of democracy is certainly different than, say, during the semi-authoritarian New Order era. The attitudes and actions of all parties, especially the formal actors in policymaking, must be framed within a paradigm of deliberative democracy or good and dignified deliberations. Given that this paper looks at the political dimension, aspects of political dynamics in the medium and long term also need attention. Politics is not static, but dynamic (owah gingsir). The current government has a limited mandate, as the term of those elected through the 2019 presidential election will end in 2024. Then, there will be a new government regime.

The success of political economic policies mandated by the omnibus bill will certainly be an important legacy of this government for the next government. However, if the omnibus bill at present is not optimal and creates dissatisfaction among interest groups in various sectors, of course, it may be a burden.

National interests

The breakthrough effort in the realm of law through the omnibus law conducted by President Jokowi certainly cannot be separated from the context of experimentation. This is related to handing the interests of various stakeholders. Politics, especially those related to economic affairs, indeed necessitates experiments that are often not easy (vivere pericoloso).

Efforts to bolster economic growth in the era of democracy and the free market today are sometimes far more difficult than in the democratic climate of the past. The variety of assumptions created can be ambiguous due to external developments, namely the global and regional economic situation.

Therefore, the political dimension is also closely related to the political and economic development of other countries. In general, we can learn from the outbreak of the coronavirus that has hit the Chinese economy and other things on a global and regional scale while the omnibus bill is being discussed in the legislature.

KOMPAS/HERU SRI KUMORO

President Joko Widodo, Vice President Ma’ruf Amin and the Cabinet discuss the draft omnibus bill on job creation during a limited meeting on Wednesday (15/1/2020) at the Presidential Office in Jakarta.

We must also be able to weigh the scale of interests of foreign actors, whether state or non-state. The implementation of the Omnibus Law certainly cannot sacrifice broader national interests for the sake of investment growth.

In particular, we also have to look at other countries that have implemented similar legislation – generally those that apply the Anglo-Saxon common law system. In essence, it is applied for the sake of boosting investment, but without sacrificing other strategic interests. Their strengths and weaknesses must be a mirror here, so that we can become a better model.

At the end of this paper, the hope remains that the omnibus bill in the context of boosting investment growth is truly in line with national interests. The good intentions of this government should not backfire even later, precisely because it leaves behind the potential for collisions of interest among unmanaged factors and the rising potential for disintegration.