Implementing Regulations for the Omnibus Law within the Taxation Cluster: A Delegated Legislation Perspective
DOI:
https://doi.org/10.58829/lp.11.1.2024.20-44Keywords:
Delegated Legislation, Omnibus Law, Regulatory Reform, Taxation ClusterAbstract
This research explores the implications of Indonesia's Law Number 11 of 2020 concerning Job Creation, or the Omnibus Law, with a focus on delegated legislation and its role in fostering investment through regulatory clarity. The law emphasizes the importance of the timely implementation of regulations, mandating that all implementing regulations remain in effect unless they conflict with the new law. However, there is a gap in the existing literature regarding how delegated legislation influences the creation of these implementing regulations, particularly within the taxation cluster. Utilizing a qualitative design and normative juridical approach, the research analyzes the hierarchy of legal regulations in Indonesia, including the constitutional framework that supports economic growth. Data collection involves an in-depth examination of relevant laws and specific tax provisions introduced by Law 11/2020. The findings reveal that while the law aims for regulatory simplification, its implementation has led to over-regulation, complicating compliance for businesses. Recommendations include refining the preparation and organization of the law to enhance clarity and ensuring that the formation of delegated regulations aligns with established legislative principles. Ultimately, this research contributes to the discourse on regulatory reform, emphasizing the necessity for coherence and efficiency in Indonesia's legal landscape to promote a conducive environment for investment and economic development.
References
Aan, Efendi & Freddy Poernomo. Hukum Administrasi. Jakarta: Sinar Grafika, 2017.
Al-Fatih, Sholahuddin, Muchamad Ali Safaat, Aan Eko Widiarto, Dhia Al Uyun, and Muhammad Nur. “The Hierarchical Model of Delegated Legislation in Indonesia.” Lex Scientia Law Review 7, no. 2 (2023): 629-658.
Andriawan, Wawan. “Pancasila perspective on the development of legal philosophy: Relation of justice and progressive law. Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 5, no. 1, (2022): 1-11.
Aprianti, Nurul, Muchamad Ali Safaâ, and Indah Dwi Qurbani. “Dualism of Review Model on Regional Regulations Post Act Number 11 of 2020 on Job Creation.” Jurnal IUS Kajian Hukum dan Keadilan 9, no. 2 (2021): 474–485.
Arafah, Adhy Riadhy, Aktieva Tri Tjitrawati, Alifia Nuril Bais, and Firnida Hanan Nurkhalisha. “FIR agreement Indonesia–Singapore: What are the legal implications?.” Heliyon 10, no. 8 (2024): 21-43.
Arieftiara, Dianwicaksih, Sidharta Utama, Ratna Wardhani, and Ning Rahayu. “Contingent fit between business strategies and environmental uncertainty: The impact on corporate tax avoidance in Indonesia.” Meditari Accountancy Research 28, no. 1 (2019): 139-167.
Bendor, Jonathan, Amihai Glazer, and Thomas Hammond. “Theories of delegation.” Annual review of political science 4, no. 1 (2001): 235-269.
Biukovic, Ljiljana. “The Lithuania-China Row: The European Union’s Search for a Strategy and Instruments to Deal with China.” Legal Issues of Economic Integration 50, no. 4 (2023): 57-70.
Brunner, José. “Property, Solidarity and (German) History.” Theoretical Inquiries in Law 10, no. 1 (2021): 1-13.
Cahyandari, Dewi. “The Good Governance Principle in Fictitious-Positive Case Applications After the Job Creation Law.” Yustisia 12, no. 1 (2021): 77-93.
Carroll, Alex. Constitutional and Administrative Law. 3rd ed. London: Pearson Education, 2003.
Craig, Paul P. “The legal effect of directives: policy, rules and exceptions.” European Law Review 34, no. 3 (2009): 349-161.
Cunningham, Ian, Philip James, Alina Baluch, and Anne-Marie Cullen. “Introducing Fair Work through ‘Soft’Regulation in Outsourced Public Service Networks: Explaining Unintended Outcomes in the Implementation of the Scottish Living Wage Policy.” Industrial Law Journal 52, no. 2 (2023): 312-341.
Dewantari, Kadek Meytha. “Lebih Lanjut di: UU Ciptaker Disahkan, Simak Perubahannya pada Klaster Perpajakan.” Pajak.go.id, December 1, 2020. https://www.pajak.go.id/id/artikel/uu-ciptaker-disahkan-simak-perubahannya-pada-klaster-perpajakan, accessed on May 27, 2024.
Dong, Sarah Xue, and Chris Manning. “Labour-market developments at a time of heightened uncertainty.” Bulletin of Indonesian Economic Studies 53, no. 1 (2017): 1-25.
Dworkin, Ronald. Law’s empire. Cambridge: Harvard University Press, 1986.
Elliott, Mark, and Robert Thomas. Public Law. New York: Oxford University Press, 2017.
Emzaed, Ali Murtadho, Ibnu Elmi AS Pelu, and Shakhzod Tokhirov. “Islamic law legislation in Indonesia: anomalies of the relationship between political configuration and zakat legal product during the reform era.” Al-Manahij: Jurnal Kajian Hukum Islam 17, no. 1 (2023): 97-112.
Fadli, Moh. “Constitutional Recognition and Legal Protection for Local Religion in Indonesia: A Discourse on Local Religion of the Tengger and Baduy People.” Pertanika Journal of Social Sciences and Humanities 25, no. 2 (2017): 601–614.
Fenton, Adam James. “The Pancasila Ideological Direction Bill (RUU‐HIP): A Missed Opportunity?.” Politics and Governance 12, no. 2 (2024): 7672.
Fuller, Lon L. The Morality of Law. New Haven: Yale University Press, 1964.
Gandara, Moh. “Kewenangan atribusi, delegasi dan mandat.” Khazanah Hukum 2, no. 3 (2020): 92-99.
Gazali. “Community Participation in Shari’ah-Based Regional Regulations in Indonesia.” Manchester Journal of Transnational Islamic Law and Practice 20, no. 2 (2024): 85–107.
Hart, Herbert Lionel Adolphus, and Leslie Green. The concept of law. New York: Oxford University Press, 2012.
Idris, Nur Azizah, Abdul Razak, and Muhammad Ilham Arisaputra. “Delegation of Medical Action Authority of Doctors to Nurses in Health Services in Emergency Departments: Empirical Legal.” Revista de Gestão Social e Ambiental 18, no. 2 (2024): e06155-e06155.
Indrati, Maria Farida. Ilmu Perundang-Undangan 1 (Jenis, Fungsi, Materi Muatan). Yogyakarta: PT. Kanisius, 2007.
Indrawati, Yuli. “The Concept of Additional State Capital to Cover the Lack of Capital in the Indonesian Investment Management Agency (LPI) | Konsep Penambahan Modal Negara untuk Menutup Kekurangan Modal Lembaga Pengelola Investasi.” Jurnal Konstitusi 20, no. 4 (2023): 704–720.
Isra, Saldi, and Pan Mohamad Faiz. “The Indonesian Constitutional Court: An Overview.” Brill’s Asian Law Series 12, no. 3 (2024): 55-94.
Jiang, Junyan. “Making bureaucracy work: Patronage networks, performance incentives, and economic development in China.” American Journal of Political Science 62, no. 4 (2018): 982-999.
Jubaedah, Dedah, Mohd Roslan Mohd Nor, Asman Taeali, Haris Maiza Putra, Moh Ahsanuddin Jauhari, and Ahmad Fathan Aniq. “Halal Certification in Indonesia: Study of Law Number 6 of 2023 on Job Creation.” Jurisdictie: Jurnal Hukum Dan Syariah 14, no. 1 (2023): 154-184.
Kamalludin, Iqbal. “Restoration of Pancasila Values Against Criminal Law Reform Strategy in Indonesia Political Perspective of Islamic Law.” Syariah: Jurnal Hukum dan Pemikiran 22, no. 1 (2022): 31-47.
Kamil, Muhammad Ikhsan, Khairul Aswadi, and Fathur Rauzi. “The Concept of a Perfect BUMDES Law Entity After Law No. 11/2020 on Working Creation in The Role of Increasing Village Income.” Jurnal IUS Kajian Hukum dan Keadilan 11, no. 3 (2023): 589-601.
Koeswahyono, Imam, Diah Pawestri Maharani, and Airin Liemanto. “Legal breakthrough of the Indonesian job creation law for ease, protection, and empowerment of MSMEs during the COVID-19 pandemic.” Cogent Social Sciences 8, no. 1 (2022): 2084895.
Krygier, Martin. “Rule of Law.” In International Encyclopedia of the Social & Behavioral Sciences, 13403–13408. Amsterdam: Elsevier, 2001.
Kunarti, Siti, Nur Putri Hidayah, Hariyanto Hariyanto, and Muhammad Bahrul Ulum. “The Legal Politics of Outsourcing and Its Implication for the Protection of Workers in Indonesia.” Sriwijaya Law Review 8, no. 1 (2024): 1-19.
Latif, Yudi. “The Religiosity, nationality, and sociality of Pancasila: Toward Pancasila through soekarno’s way.” Studia Islamika 25, no. 2 (2018): 207-245.
Lelisari, Lelisari, Ridho Aulia Tanjung, Zainal Abidin Pakpahan, Imawanto Imawanto, and Hamdi Hamdi. “Implications of the Constitutional Court Decision Number 91/Puu-Xviii/2020 Toward Job Creation Law in The Mineral and Coal Mining Sector.” Jurnal IUS Kajian Hukum dan Keadilan 10, no. 3 (2022): 555-570.
Manan, Bagir. “Wewenang Provinsi, Kabupaten, dan Kota dalam Rangka Otonomi Daerah.” Hukum Unpad, 13, no 5. (2000): 1-14.
Mariane, Irene, Listyowati Sumanto, and Ignatius Pradipa Probondaru. “Problems of Converting Agricultural Land and the Need to Anticipate Its Control After the Enactment of the Job Creation Law.” Volksgeist: Jurnal Ilmu Hukurn dan Konstitusi 7, no. 1 (2024): 23-46.
Martitah, Martitah, Arif Hidayat, Rahayu Fery Anitasari, Malik Akbar Mulki Rahman, and Triska Rahmatul Aini. “Transformation of the Legislative System in Indonesia Based on the Principles of Good Legislation.” Journal of Indonesian Legal Studies 8, no. 2 (2023): 545-594.
McGregor-Lowndes, Myles. “Australia: Co-production, self-regulation and co-regulation.” Regulatory waves: Comparative perspectives on state regulation and self-regulation policies in the nonprofit sector 10, no 4 (2017): 176-198.
Muhammad, Fikri. “Environmental agreement under the non-interference principle: the case of ASEAN agreement on transboundary haze pollution.” International Environmental Agreements: Politics, Law and Economics 22, no. 1 (2022): 139-155.
Muhammad, Naufal Faiz, Atip Latipulhayat, and Garry Gumelar Pratama. “Realignment of Flight Information Region Agreement Between Indonesia and Singapore 2022: Unraveling Sovereignty and Ratification Issues for Indonesia.” Padjadjaran Jurnal Ilmu Hukum 11, no. 1 (2024): 1–25.
Munandar, Aris. “Religion and Nation Building: Religion and National Development in Indonesia.” International Journal of Religion & Spirituality in Society 9, no. 2 (2019): 19–30.
Muttaqin, Labib, Sudjito Atmoredjo, and Andy Omara. “Relasi Pancasila dengan Putusan Mahkamah Konstitusi Sebagai Sumber Hukum di Indonesia.” Jurnal Konstitusi 21, no. 1 (2024): 77-97.
Nasir, Mohamad, Laurens Bakker, and Toon van Meijl. “Government Supervision of Oil Palm Plantations in Indonesia: Legal Issues and Proposed Remedies.” Law and Development Review 12, no. 1 (2024): 131-149.
Nielson, Daniel L., and Michael J. Tierney. “Delegation to international organizations: Agency theory and World Bank environmental reform.” International organization 57, no. 2 (2003): 241-276.
Ningtyas, Anindita Purnama. “The Fulfillment of The Clarity Principle Towards the Formulation Arrangement in The Recognition of Statutory Bodies Within the Limited Liability Company.” Jurnal IUS Kajian Hukum dan Keadilan 11, no. 1 (2023): 156-175.
Pawestri, Widhayani Dian, Vincentius Sutanto, Kukuh Leksono Suminaring Aditya, and Khofifah Nura Adila. “Investment in Infrastructure: A Comparative Study of the Regulation of Online Single Submission in Indonesia, Canada, and New Zealand.” European Journal of Comparative Law and Governance 11, no. 1 (2024): 129-163.
Putra, Antoni. “Penerapan Omnibus Law Dalam Upaya Reformasi Regulasi.” Jurnal Legislasi Indonesia 17, no. 1 (2020): 1-10.
Putri, Nadiyah Meyliana, Mutia Azizah Aksan, Radhitya Pratama, Angel Maris Linda, and Ridwan Arifin. “Pancasila Values in the New Indonesian Criminal Code: Does the Code More Humanist?.” Journal of Law and Legal Reform 4, no. 4 (2023): 597–618.
Rachmadi. “BUMN, BLU, PTNBH, dan Lembaga Sui Generis.” Direktorat Jenderal Kekayaan Negara, March 27, 2019. https://www.djkn.kemenkeu.go.id/artikel/baca/12783, accessed May 27, 2024.
Rahayu, Ning. “Analysis of tax treatment of personal taxpayers engaging in business with certain gross income (small enterprise).” International Journal of Economic Research 14, no. 9 (2017): 289-298.
Rahmat, Diding, Sudarto Sudarto, Sarip Sarip, Sujono Sujono, and Muhammad Faiz Aziz. “The Urgency of Administrative Law in Light of Ius Constituendum Regarding the Role of Village Heads.” Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 9, no. 4 (2024): 53-67.
Risfa Izzati, N. “Deregulation in Job Creation Law: The Future of Indonesian Labor Law.” Padjadjaran Jurnal Ilmu Hukum 9, no. 2 (2022): 191–209.
Riwanto, Agus, Sukarni Suryaningsih, and Delasari Krisda Putri. “Reform and Breakthrough in Business Regulations for Empowering MSMEs in Indonesia and the Netherlands” Journal of Human Rights, Culture and Legal System 3, no. 3 (2023): 513-540.
Riyadi, Sugeng, Muhammad Fauzan, Idamatussilmi Idamatussilmi, and Asep Budiman. “The Urgency of Establishing Constitutional Court Procedural Law.” Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 9, no. 2 (2023): 209-223.
Rohmy, Atikah Mardhiya, H. Setiyono, and Supriyadi Supriyadi. “Corporate Criminal Sanction in Omnibus Law for Forest Destruction in Indonesia: Review of Law Number 11 of 2020 on Job Creation.” Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 21, no. 1 (2021): 49-64.
Rose, Nancy. L. “Political Economy of Regulation.” In International Encyclopedia of the Social & Behavioral Sciences, 13403-13408. Amsterdam: Elsevier, 2001.
Rustamaji, Muhammad, and Bagus Hanindyo Mantri. “Reconstruction of the Termination of Prosecution of Corruption Offences Public Prosecutor's Discretion.” Evolutionary Studies in Imaginative Culture 8, no. 2 (2024): 1126-1148.
Safadi, Hani, and Richard Thomas Watson. “Knowledge monopolies and the innovation divide: A governance perspective.” Information and Organization 33, no. 2 (2023): 100466.
Shalihah, Fithriatus. “Industrial Relations with Specific Time Work Agreements after the Decision of the Constitutional Court of the Republic of Indonesia Number 91/PUU-XVIII/2020 in The Perspective of Legal Justice.” Jurnal Hukum Novelty 13, no. 1 (2022): 65-80.
Silalahi, Artha Debora. “The Paradox of State of Law Idea on Pancasila Philosophical Justification as Sources of Law: Paradoks Ide Negara Hukum dalam Justifikasi Filosofis Pancasila Sebagai Sumber Hukum.” Jurnal Konstitusi 21, no. 1 (2024): 62-76.
Simabura, Charles, Satya Arinato, Maria Farida Indrati, Saldi Isra, and Fitra Arsil. “Ministerial Authority in Formulating Regulations Related to Presidential Lawmaking Doctrine.” Constitutional Review 9, no. 2 (2023): 297–331.
Tamanaha, Brian Z. A General Jurisprudence of Law and Society. New York: Oxford University Press, 2001.
Tarantang, Jefry. “Cita Hukum Dan Sistem Nilai Etika Advokat Dalam Penyelesaian Sengketa Hukum Keluarga Islam.” El-Mashlahah 9, no. 2 (2019): 137–153.
Thatcher, Mark, and Alec Stone Sweet. “Theory and practice of delegation to non-majoritarian institutions.” West European Politics 25, no. 1 (2002): 1-22.
Valones, Atty Genald Malvas, and Ulil Albab Junaedi. “Urban Green Space Policy Reform in Indonesia: Breathing in the Middle of Development.” Journal of Law and Legal Reform 4, no. 2 (2023): 183-210.
Wijayati, Rr Ani, and Haposan Sahala Raja Sinaga. “Implementation of Indonesian Government Regulations Concerning the Job Loss Guarantee Program in the Province of the Special Capital Region of Jakarta.” Khazanah Hukum 6, no. 1 (2024): 98-112.
Zainullah, Mohammad. “The Compatibility of Indonesia’s Job Creation Law Number 11 Of 2020 With United Nations Guiding Principles on Business and Human Rights.” Jurisdictie: Jurnal Hukum dan Syariah 14, no. 1 (2023): 1-36.
