The Impacts of Indonesian Labor Law on Startup
The polemics in some of the provisions in the Omnibus Law provides positive and negative effects on digital startup
The Indonesian government made the omnibus law aims to simplify the regulations that previously existed.
According to the Minister of Communication and Information of Indonesia (MENKOMINFO), Johnny G. Plate startups in Indonesia are one of the largest in Southeast Asia and in the top 5 worldwide after Canada and the UK. The number of startups in Indonesia recorded is 2,200 startups.
Then what about startups in Indonesia? Here are the positive and negative impacts of the ratification of the omnibus law on the Indonesian Labor Law
The Impacts of the Omnibus Law on Startups
- Positive
The existence of the omnibus law draft of the Indonesian labor law makes domestic startups feel happy because, with this law, startups will be helped a lot from the investment side. This is clearly useful for startups to continue to grow because it makes it easier for foreign investors to easily invest in startups and other business sectors in the country. The purpose of the passage of this bill is that it is hoped that foreign capital can easily enter to invest in digital companies in Indonesia.
- Negative
The negative impact of Indonesian labor law in the startup sector is that it is easier for foreign workers to enter and work in digital companies in Indonesia. With the ease of existing regulations, local workers will be eliminated. In addition, due to the passage of this bill, outsourcing employees are not given job guarantees in the form of a clear career path.
References:
Agung, Bintoro. (2020). Daily Social. Observing the Effects of the Omnibus Law on the Startup Work Ecosystem (Accessed on 27 October 2020).
Evandio, Akbar. (2020). Technology Business. Does the Job Creation Law Give Startups Profit or Loss? (Accessed 27 October 2020).
Febrina, Sylke. (2020). DetikFinance. Foreign Analysts Crowded with Predictions of the Impact of the Omnibus Law on Job Creation (Accessed on 27 October 2020).
Sukandar, Clara. (2020). Republika. Indonesia is in the Top 5 Countries with the Most Startups (Accessed on 27 October 2020).
Tania, Yessi. (2020). Kompasiana. Positive Impact of the Job Creation Law on MSMEs and Start-ups (Accessed 27 October 2020).
Twin, Alexandra. (2020). Investopedia. Outsourcing (Accessed 27 October 2020).
