Omnibus Law: Economist Calls for Regulation Harmonization

Jakarta. Senior economist Chatib Basri said that the ministries as well as sub-national governments need to work together when it comes to the Job Creation Law, arguing that many regulations are still overlapping with one another.
The Job Creation Law has amended many regulations across various sectors as a means to improve Indonesia's investment climate. However, its implementation on the ground still faces some challenges. Some regulations issued by the regional government heads even conflict with the Job Creation Law, according to Chatib.
“And then we might have one regulation issued by a ministry, but it is inconsistent with other ministries. A ministry might say that something is allowed, but another ministry might tell you otherwise. Hence, that is why we need to harmonize the regulations,” Chatib told reporters on the sidelines of the Investor Daily Round Table in Jakarta on Wednesday.
“Once again, the solution [for a better implemented Job Creation Law] is harmonization. So one ministry is consistent with another,” Chatib, who is also a deputy chairman of the law’s taskforce, said.
Chatib commented on the feedback given by the Investor Daily Round Table participants, some of whom expressed concerns over the inconsistent regulations.
“I think this is good feedback. Of course, this will be the inputs that [the government needs to] consider to improve its implementation,” Chatib said.
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