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Legal Reconstruction of the Omnibus Law on Job Creation for Justice in Enhancing Investment and Indonesia’s Competitiveness

JURNAL HUKUM · Vol. 41 No. 2 (2025) · pp. 253–276

DOI
10.26532/jh.v41i2.44442
ISSN
2723-6668, 1412-2723
Published
2025-05-22
Publisher
Unissula
Language
en

Abstract

The Omnibus Law on Job Creation (Law No. 11 of 2020 as amended by Law Number 6 of 2023) is a key Indonesian government policy designed to boost investment and national competitiveness by simplifying the investment ecosystem and enhancing the ease of doing business. This study examines the need for legal reconstruction of the law to create a more equitable regulatory framework that promotes investment, competitiveness, legal certainty, and labor protection. Despite Indonesia’s strong appeal to foreign investors, challenges such as bureaucratic inefficiencies, corruption, and legal uncertainty persist. While the Omnibus Law aims to improve regulatory efficiency, its implementation has been criticized, particularly by labor groups who argue that it prioritizes capital over worker welfare. Furthermore, inefficiencies in investment management are highlighted by the high Incremental Capital Output Ratio (ICOR), indicating that large investments are not yielding expected economic returns. This study proposes strategies for legal reform to address labor concerns, improve legal transparency, and enhance infrastructure, with the goal of optimizing the policy’s impact on sustainable economic growth. The research aims to contribute to the development of a more balanced legal framework that supports both economic progress and social welfare.

Keywords

Collaboration network of the authors

40 authors · 120 co-authorship links · 14 across different organisations · showing the 40 most connected

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Halu Oleo
  • Bandung Institute of Technology
  • Hasanuddin University
  • Sunan Kalijaga State Islamic University Yogyakarta
  • Indonesia University of Education
  • Universitas Serambi Mekkah
  • Universitas Ahmad Dahlan
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
La Ode SyukurUniversitas Halu Oleo2
Wahyu SrigutomoBandung Institute of Technology2
Ratih KumalasariAffiliation unknown2
Irwan MeilanoAffiliation unknown2
Awalia AwaliaAffiliation unknown2
Joewono SoerosoAffiliation unknown2
Ahsan YunusHasanuddin University1
Oheo Kaimuddin HarisUniversitas Halu Oleo1
Herman HermanUniversitas Halu Oleo1
Nanik HindaryatiningsihUniversitas Halu Oleo1
La Ode NggawuUniversitas Halu Oleo1
Sabarudin SabarudinUniversitas Halu Oleo1
Ruslin RuslinUniversitas Halu Oleo1
Rifa’atul MahmuddahUniversitas Halu Oleo1
La AbaUniversitas Halu Oleo1
Fifi Nirmala GUniversitas Halu Oleo1
Sari Sukmawati KapotaUniversitas Halu Oleo1
Hasyim AbdillahSunan Kalijaga State Islamic University Yogyakarta1
Yusna IndarsyihUniversitas Halu Oleo1
Aswani AswaniAffiliation unknown1
Ardiyaningsih Puji LestariAffiliation unknown1
Jasminarni JasminarniAffiliation unknown1
Mitra DjamalBandung Institute of Technology1
Muhammad YaminAffiliation unknown1
Janny LindiarniAffiliation unknown1
Oki NeswanAffiliation unknown1
Mahmud YunusAffiliation unknown1
Al Azhary MastaIndonesia University of Education1
Wono Setya BudhiAffiliation unknown1
Abd. Halim MomoAffiliation unknown1
Nerlin NerlinAffiliation unknown1
Wa Ode ReniAffiliation unknown1
Salimin SaliminAffiliation unknown1
Muhamad SalehUniversitas Serambi Mekkah1
La IruUniversitas Halu Oleo1
Irawaty IrawatyAffiliation unknown1
Muhrajan PiaraAffiliation unknown1
HERMAN HERMANUniversitas Ahmad Dahlan1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) http://jurnal.unissula.ac.id/index.php/jurnalhukum/oai, first harvested 9 Nov 2026, last seen 9 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Legal Reconstruction of the Omnibus Law on Job Creation for Justice in Enhancing Investment and Indonesia’s Competitiveness</dc:title>
	<dc:creator xml:lang="en">Gunawan, Hendra</dc:creator>
	<dc:creator xml:lang="en">Syahbudin, Syahbudin</dc:creator>
	<dc:subject xml:lang="en">Omnibus Law</dc:subject>
	<dc:subject xml:lang="en">Investment</dc:subject>
	<dc:subject xml:lang="en">Legal Reconstruction</dc:subject>
	<dc:subject xml:lang="en">Economic Growth</dc:subject>
	<dc:subject xml:lang="en">Labor Protection</dc:subject>
	<dc:description xml:lang="en">The Omnibus Law on Job Creation (Law No. 11 of 2020 as amended by Law Number 6 of 2023) is a key Indonesian government policy designed to boost investment and national competitiveness by simplifying the investment ecosystem and enhancing the ease of doing business. This study examines the need for legal reconstruction of the law to create a more equitable regulatory framework that promotes investment, competitiveness, legal certainty, and labor protection. Despite Indonesia’s strong appeal to foreign investors, challenges such as bureaucratic inefficiencies, corruption, and legal uncertainty persist. While the Omnibus Law aims to improve regulatory efficiency, its implementation has been criticized, particularly by labor groups who argue that it prioritizes capital over worker welfare. Furthermore, inefficiencies in investment management are highlighted by the high Incremental Capital Output Ratio (ICOR), indicating that large investments are not yielding expected economic returns. This study proposes strategies for legal reform to address labor concerns, improve legal transparency, and enhance infrastructure, with the goal of optimizing the policy’s impact on sustainable economic growth. The research aims to contribute to the development of a more balanced legal framework that supports both economic progress and social welfare.</dc:description>
	<dc:publisher xml:lang="en">Unissula</dc:publisher>
	<dc:date>2025-05-22</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
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	<dc:identifier>https://jurnal.unissula.ac.id/index.php/jurnalhukum/article/view/44442</dc:identifier>
	<dc:identifier>10.26532/jh.v41i2.44442</dc:identifier>
	<dc:source xml:lang="en">Jurnal Hukum; Vol. 41 No. 2 (2025): Jurnal Hukum; 253-276</dc:source>
	<dc:source xml:lang="id">Jurnal Hukum; Vol 41 No 2 (2025): Jurnal Hukum; 253-276</dc:source>
	<dc:source>2723-6668</dc:source>
	<dc:source>1412-2723</dc:source>
	<dc:source>10.26532/jh.v41i2</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://jurnal.unissula.ac.id/index.php/jurnalhukum/article/view/44442/12598</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Hendra Gunawan, Syahbudin</dc:rights>
</oai_dc:dc>