Indonesia’s Minimum Wage Policy After the Omnibus Law

Abstract

The labour sector and industrial relations are pivotal for Indonesia’s development, especially in the current neo-capitalist setting. Therefore, this article examined the current Indonesian labour law and its industrial relations through a comparative analysis with Islamic principles, particularly after revision with the 2020 Omnibus Law. Using a socio-legal methodology, it analysed the historical and political contexts of the Acts on labour to determine their tendency to enhance or undermine labourers’ rights. Moreover, this article explored the government’s utilisation of the Acts for suppression and compared the ways of Islamic principles’ regulation of justice in industrial affairs, especially in the minimum wage policy. The study revealed that the 2003 Manpower Law, the 2020 Omnibus Law on Work Creation, and the 2021 Regulation on Wages, which are claimed to protect labourer’ rights, erode them instead. The labour laws are firm in stressing workers’ duties and obligations, yet are indecisive in regulating their rights, leading to the reduction and abolishment of several work benefits. In addition, government authorities are weak and accommodate to the interests of companies and investors. Therefore, this article concluded that the labour law provision, specifically the legal issue of minimum wage policy, does not correspond to Islamic principles and the practices of maslahah and maqosid al-shari’ah.

PT. Jaso Malindo Perspective of Fiqh Muamalah and Law No.13 of 2003 (Case Study of PT Jaso Malindo Department of Solok-Padang)

“…13 of 2003 concerning Manpower in conjunction with Government Regulation No. 8 of 1981 concerning Wages Protection), this principle is known as the principle ''no work no pay'', this principle does not apply absolutely, the meaning can be waived in certain cases or in other words workers still get wages even though they cannot do the job (Buana & Budiman, 2022;Espeli, 2021;Merrill-Francis dkk., 2022).…”

Divine Constitution Perspective On the Reactualization of Allah’s Law

“…The phenomenon of the reactualization of God's law on a practical level is seen through the following studies; First, the study states that although Indonesia has the largest Muslim population in the world, its public law is more secular than Islamic. 65 Second, studi tentang Rule of Law and Human Rights Challenges in South East Asia: A Case Study of Legal Pluralism in Indonesia. 66 Third, studi tentang the call for an Islamic constitution and establishing an Islamic state in Sudan has not been out of religious piety.…”

The Role of Omnibus Law Implementation on the Women Workers Protection: An Descriptive Analysis of Labor Law in Indonesia

“…However, current regulations in the manpower sector do not allow for the creation of decent jobs because regulations allow companies to recruit outsourced workers and apprentices. In fact, such a non-permanent working relationship model actually provides opportunities for increased exploitation, lower labor costs and marginalized workers [1] [2].…”

“…The formation of the Omnibus Law has received various kinds of rejection from workers/laborers because they are considered detrimental, especially for female workers/laborers. The formulation of the problem in this study (1) What is the conception of the Omnibus Law for the protection of female workers in Indonesia, (2) How is the transformation from Law Number 13 of 2013 concerning Employment into the Omnibus Law on Employment Creation [3]. The involvement of women in the world of work is a form of participation in national development.…”

“…It is possible that there are still controversies that occur, such as discrimination against women workers in terms of wages, menstruation and maternity leave, as well as violations of other rights. Research Objectives (1) To find out the complexity and implications of the Omnibus Law on Job Creation for female workers, (2) To know the transformation in the form of differences and contents between the Labor Law and the Omnibus Law on Job Creation, and (3) To know the conception of the Omnibus Law on Job Creation for the Protection of Women Workers in Indonesia.…”