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Indonesia to introduce omnibus law on severance pay, working hours and more



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Indonesia’s government is looking to reform five issues in the current labour law, with the implementation of an omnibus bill on job creation.

As reported by The Jakarta Post, Manpower Minister Ida Fauziyah said discussions around this bill are still ongoing, and expected to conclude next week, “so the draft could be brought to the House of Representatives for deliberation.”

“Basically, we are only focusing on five issues including minimum wage, severance pay and working hours, among other things,” she added.

This follows a deadline set by President Joko Widodo, towards his priority of attracting investments in order to create more jobs in the country. In line with this, 1,194 articles in 82 laws have been identified, that would be amended to accommodate to this priority.

Apart from this, the government also plans to introduce an omnibus law on taxation, which will lower corporate income tax from 25% to 20% by 2023; lower tax penalties; ease income tax regulations for expats; and more.


National talent management body to nurture ‘super-talented’ Indonesians

In similar news, Indonesia’s Presidential Chief of Staff, Dr Moeldoko announced recently that the government plans to create a national talent management body this year, in a move to enhance human capacity development.

A separate report by The Jakarta Post cites Dr Moeldoko saying that the body, named the National Talent Management (MTN), will gather data on “super-talented” Indonesians who “have yet to be managed properly.”

This plan was introduced as Indonesia “lagged behind other countries” in certain macro indicators such as the Program for International Student Assessment (72nd place) and the Human Development Index (116th), he explained.

In line with this, Education and Culture Minister Nadiem Makarim expressed hopes that the MTN would not only support economic growth, but would also instill confidence in the country’s young talent.

He said: “The initiative to nurture and appreciate national talent is important because there are many talented young people who we have yet to know or see.”

Photo / iStock

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